SAP Reports Revenue up 12 Percent, Earnings up 15 Percent
SAP reported a 15 percent year-on-year rise in earnings for the second quarter, on revenue up 12 percent. It forecast that underlying revenue growth in its core business of software and software-related services will accelerate following completion of its acquisition of Sybase.
SAP reported net income for the quarter of
Revenue from consulting, training and other professional services remained flat at
However, the company continues to derive most of its revenue from software and from software-related services, including support and subscriptions.
Support revenue grew 14 percent to
Overall, second-quarter revenue from SAP's core software and software-related services activities grew at 16 percent, or 8 percent excluding the effects of currency fluctuations.
SAP forecast that full-year revenue from software and software-related services will grow at between 6 percent and 8 percent at constant currency rates. But SAP expects revenue growth of between 9 percent and 11 percent at constant currency rates once it includes revenue from Sybase, for which it announced the conclusion of its tender offer Tuesday. With approval for the merger granted by the European Union last week, completion of the merger is now a mere formality.
Around the world, software revenue for the second quarter was up 64 percent in the Americas, SAP's biggest market, and up 11 percent in Asia, but down 9 percent in Europe, the Middle East and Africa.
All activities combined, SAP's second-quarter revenue rose just 3 percent in Europe, the Middle East and Africa, to
Beyond SAP's sales figures, there is one other sign that the economy is picking up: its customers are paying faster. SAP's days sales outstanding, a measure of how long it takes customers to pay their bills, declined from 79 days on Dec. 31, 2009, to 73 days on June 30, 2010.
Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at email@example.com.