SAP 2Q net profit rises 4% to euro423 mn

FRANKFURT: German software company SAP AG said Wednesdayits second quarter net profit rose 4 per cent on better margin growth, despite a drop in revenues.

The Walldorf-based company reported net profit for the April-June period of euro423 mn ($600 mn) compared with euro408 million in the second quarter of 2008.

The company said that revenues for the period fell 10 percent to euro2.6 billion from euro2.9 billion a year ago.

The company did not provide an outlook for sales and profit for the year, though it revised its margin outlook upward, and said it was able to work on developing new products.

``While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year,'' Leo Apotheker, the chief executive of SAP, said in a statement.

``Our robust business model provides us the ability to continue to innovate, which we believe is the foundation for future growth. I am excited about the new products that we are delivering to our customers.''