Strong profits for SAP, despite software failings
SAP has released its second quarter results today, raising concerns about its software revenues.
SAP has reported strong profits in its second quarter results released today, but shown its revenue is suffering in specific areas.
Net profit for the company came in at 423 million (365 million), up by four per cent from the same time last year, while operating income rose by nine per cent.
Werner Brandt, chief financial officer of SAP, said in a statement: "Despite the challenging economic conditions, the strength of our business model combined with a strong cost discipline has proven itself once again by enabling us to report another quarter of strong operating margin growth."
However, software revenues fell dramatically down 40 per cent from 898 million in the second quarter of 2008 to just 543 million this quarter.
The company is positive about the future however and, even with a one off restructuring charge of 200 million, it expects a good operating margin through new products and existing customers for the rest of the year.
Leo Apotheker, chief executive officer of SAP, said: "While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year."
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