SAP shows strong first quarter
Software giant shows significant profit increases
SAP HAS ACHIEVED a strong first quarter as profit and software-related revenues increased, according to its latest results.
The German financial software giant was recently embroiled in a court battle with rivals Oracle over intellectual property ownership that saw profits in the previous quarter take a hit.
More than $1.3bn was put aside by SAP in that quarter to cover the cost of the US lawsuit.
However, the firm managed to turn its fortunes around as profit after tax increased 4% to €403m (£358.8m) in the first quarter, up from €387m in the same period last year under IFRS. It grew 20% under non-IFRS reporting.
Software and software-related revenues increased 20% to €2.33bn from €1.95bn compared to Q1 2010 under both IFRS and non-IFRS reporting.
Werner Brandt, (pictured) CFO of SAP, said: “The strong top-line results, coupled with a double-digit increase in non-IFRS operating profit, keep us on track to deliver further profitable growth in 2011 and beyond.”
The Company expects full-year 2011 non-IFRS operating profit to range from €4.45bn to €4.65bn.
Meanwhile, employee numbers also increased 6,274 to 53,872.
The German IT business’ figures are unaudited.
