SAP saw revenue rise 27 percent in the fourth quarter but profits dropped by more than a third due to increased provisions linked to litigation with Oracle related to its former TomorrowNow unit, the company said Wednesday.
Oracle sued and won US$1.3 billion in damages in a corporate theft lawsuit against TomorrowNow which downloaded software and support materials illegally from an Oracle website.
On Wednesday, SAP said it intends to fight the damages and laid out a course of action.
"SAP has great respect for the US legal system and Court decisions. However, SAP believes that the amount awarded by the jury in Oracle v. SAP/TomorrowNow is disproportionate and wrong," the company said.
"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," it said.
It warned the amount by which the jury award would be reduced, if any, cannot be predicted, so legal provisions assumed in Wednesday's earnings statement could change.
Revenue in quarter ended Dec. 31 was
SAP expressed confidence for the coming year and said it performed extremely well in all key customer segments, and showed solid revenue worldwide, particularly in fast-growing emerging markets.
Software revenue in the fourth quarter was
Software revenue grew for the full year to