SAP defies tech gloom with strong software sales

13 July 2012 11:15 am - 0 - {{hitsCtrl.values.hits}}

A A A

Germany's SAP, the world's largest maker of business software, delivered a stronger-than-expected rise in profits led by robust sales, defying a weakening trend that has hit rivals.

SAP said its software revenues, when measured by IFRS accounting standards, rose 19 percent to a record 1.06 billion euros ($1.3 billion) for the second-quarter.

It had previously predicted a 15-20 percent increase at constant currencies.

Quarterly operating profit before special items rose 15 percent to 1.17 billion euros, above the Thomson Reuters I/B/E/S average analyst estimate of 1.11 billion euros.

SAP shares, down 9.4 percent in the last three months, traded up 4.7 percent at 48.35 euros by 1236 GMT.

"The results are much better than the market had come to expect recently," one stock market trader said.

"Very sound set of figures, given the macroeconomic uncertainties and the poor results of some competitors," said DZ Bank analyst Oliver Finger.

Analysts pointed to robust demand for cloud computing, favorable exchange rates and the purchase of cloud-software developer SuccessFactors.

Cloud computing provides software, storage and other services from remote data centers over the Web and holds the promise of reducing costs and improving efficiency.

The company didn't give an outlook and the general feeling is that technology spending might weaken further as the euro zone's debt crisis deepens and U.S. job creation stagnates.

There has been plenty of evidence of a weak second-quarter in the tech sector. U.S. software firms Qlik Technologies and Informatica Corp as well as Indian software services provider Infosys have issued estimates below market forecasts.

Last month, however, SAP's main peer Oracle reported stronger-than-expected quarterly profit.

SAP is expected to publish more detailed results and to provide a full-year outlook on July 24. ($1 = 0.8164 euros)

(Reporting by Ludwig Burger; Additional reporting by Tom Koerkemeier, Nicola Leske and Andreas Cremer; Editing by Elaine Hardcastle)

(Source : Reuters)

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

SAP defies tech gloom with strong software sales

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

Former MP Palitha Thewarapperuma dies from electrocution

Confusion remains if April 15 is a bank holiday

Sri Lankan among NASA’s new crew for next simulated Mars journey

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

23 year old youth ends up having his testicles removed

Belgian traveller scammed in Kalutara

MIRROR CRICKET

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

TODAY'S HEADLINES

Debt Restructuring Talks: Bondholders Fear Regime Change Impact

Don’t be deceived by NPP and Cardinal Ranjith: UNP

Emirates halts check-in for connections, UL cancels flights to Dubai

Plans afoot to obtain “Blue Flag Beaches” certification for SL beaches

Hardik fined Rs 12 lakh for violating IPL code of conduct after win over Punjab Kings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings