SAP reported a 4 percent year-on-year increase in net income for the second quarter, even as revenue dropped 10 percent. The company is now more optimistic about its prospects for the full year, but despite the improved profitability, will continue to keep a tight rein on costs, it said Wednesday.
Net income for the quarter totaled
Software sales contributed
The company is, however, more optimistic about the outlook for the rest of this year than when it presented its first-quarter results in April.
"I am cautiously optimistic that the worst might be behind us," said CEO L
While the company has more deals in the pipeline, however, "Closure rates are more volatile," he said, warning that "Customers are more optimistic but their buying behavior hasn't changed."
SAP raised its operating margin forecast for the full year to between 25.5 percent and 27 percent, compared to its earlier forecast of 24.5 percent to 25.5 percent, despite predicting a decline in software and software-related service revenue for the year of between 4 percent and 6 percent, where it had previously predicted a decline of less than 1 percent.
The company now expects restructuring charges this year to total