Strong profits for SAP, despite software failings

published 29 July 2009

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."

Jennifer Scott is a former freelance journalist and currently political reporter for Sky News. She has a varied writing history, having started her career at Dennis Publishing, working in various roles across its business technology titles, including ITPro. Jennifer has specialised in a number of areas over the years and has produced a wealth of content for ITPro, focusing largely on data storage, networking, cloud computing, and telecommunications.

Most recently Jennifer has turned her skills to the political sphere and broadcast journalism, where she has worked for the BBC as a political reporter, before moving to Sky News.