Software giant SAP posts positive results, is upbeat for 2008
SAP, the world's biggest business software maker, posted on Tuesday a second quarter net profit that fell by nine per cent but nonetheless exceeded analysts expectations.
By Agencies |
BERLIN: SAP, the world's biggest business software maker, posted on Tuesday a second quarter net profit that fell by nine per cent but nonetheless exceeded analysts expectations.
SAP made a profit of 408 mn euros (642 mn dollars) in the three months from April to June, or 0.34 euros per share.
Analysts polled by Dow Jones Newswires had forecast net profit of 0.31 euros per share.
The lower result was largely a result of SAP's acquisition last year of the French software firm Business Objects.
Software revenues, a benchmark of group growth, increased by 18 per cent from the second quarter of 2007 to 2.86 bn euros.
Total sales gained 18 per cent to 2.86 bn euros, while operating profit was up by 2.0 per cent at 593 mn, with both figures exceeding expectations.
Taking the market by surprise, SAP expressed cautious optimism for the full year, saying its operating profit margin should come out "in the high end" of a forecast range of 28.5-29 per cent.
Last year, excluding results of Business Objects, which it bought for 4.8 bn euros, and allowing for foreign exchange factors, SAP posted a profit margin of 27.3 per cent.
On the same basis, SAP said Tuesday it expected sales to increase this year at the upper end of a range of between 24-27 per cent.
SAP made a profit of 408 mn euros (642 mn dollars) in the three months from April to June, or 0.34 euros per share.
Analysts polled by Dow Jones Newswires had forecast net profit of 0.31 euros per share.
The lower result was largely a result of SAP's acquisition last year of the French software firm Business Objects.
Software revenues, a benchmark of group growth, increased by 18 per cent from the second quarter of 2007 to 2.86 bn euros.
Total sales gained 18 per cent to 2.86 bn euros, while operating profit was up by 2.0 per cent at 593 mn, with both figures exceeding expectations.
ADVERTISEMENT
Taking the market by surprise, SAP expressed cautious optimism for the full year, saying its operating profit margin should come out "in the high end" of a forecast range of 28.5-29 per cent.
Last year, excluding results of Business Objects, which it bought for 4.8 bn euros, and allowing for foreign exchange factors, SAP posted a profit margin of 27.3 per cent.
On the same basis, SAP said Tuesday it expected sales to increase this year at the upper end of a range of between 24-27 per cent.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
