SAP Cuts Provision for TomorrowNow Litigation, Boosting Q3 Profit
SAP said its third quarter revenue rose 14 percent year on year, and operating profit more than doubled according to International Financial Reporting Standards (IFRS), boosted by a recalculation of the sum set aside to settle litigation with Oracle over its SAP's former TomorrowNow subsidiary.
Excluding that change and a handful of other exceptional items, non-IFRS third-quarter revenue rose 12 percent to
Currency fluctuations hit third-quarter profit: At constant currency rates, year-on-year non-IFRS operating profit growth would have been 26 percent, SAP said.
The company saw the fastest growth in software revenue, at around 28 percent, with revenue from software and software-related services growing 14 percent.
With only one quarter to go, SAP still says the outlook for the full year is unclear given current economic uncertainties. The company has not changed its previous guidance, repeating that it expects software and software-related service revenue to increase by between 10 percent and 14 percent. It did not offer guidance on software revenue growth, but said companies continue to invest in IT in general, and innovative software solutions in particular.
SAP reduced its provisions for settlement of the TomorrowNow litigation by
Other exclusions from the IFRS results included a
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.