SAP profits struck down by Oracle litigation


SAP saw profits take a nose dive in 2010 after spending the year at loggerheads with archrivals Oracle.

The German firm saw total revenue in the fourth quarter rise by 27 per cent, amounting to an impressive 4 billion (3.44 billion). However, profits were dramatically reduced by the fine levied on the company in the US courts.

The court case saw TomorrowNow sued by Oracle for illegally downloading software from its website. However, when SAP acquired the company, it also acquired the responsibility and Larry Ellison's software giant was awarded $1.3 billion (818 million) in damages for the theft to come out of SAP's pocket.

This left the firm with a depleted 437 million overall profit down by almost 250 million when compared to the same quarter last year.

SAP has not given up though and pledged to fight the substantial fine laid at its door.

"SAP has great respect for the US legal system and Court decisions," the company said in a statement. "However, SAP believes that the amount awarded by the jury in Oracle v. SAP/TomorrowNow is disproportionate and wrong."

"After the Court has entered final judgment SAP intends to file post-trial motions in the coming weeks asking the Court to reduce the amount of damages awarded, or to order a new trial."

The statement also said the firm would look into appealing if this wasn't granted.

Jennifer Scott

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.