SAP Q3 Profits Soar on Reduction of TomorrowNow Provision
SAP reported Wednesday a 14 percent increase in revenue in the third quarter ended Sept. 30, and said its business pipeline continues to remain very strong and companies continue to invest in IT. The business software vendor did not however revise its outlook for the full year 2011, citing the ongoing uncertain macroeconomic environment.
Total revenue in accordance with International Financial Reporting Standards (IFRS) was
SAP's third quarter software revenue grew at its fastest rate in a decade because customers are shifting their investments to software that helps them grow and innovate, the company said in a statement.
SAP's profits soared by 150 percent, in accordance with IFRS, after the company reviewed its provision for settlement of the TomorrowNow litigation with Oracle by
The company forecasts full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10 percent to 14 percent at constant currencies, but expects to reach the high end of the range.
SAP plans to evaluate buying back shares in view of its strong free cash flow generation over the first nine months of 2011. During this period, the company has already bought back 3.6 million shares at an average price of