Strong profits for SAP, despite software failings

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SAP has reported strong profits in its second quarter results released today, but shown its revenue is suffering in specific areas.

Net profit for the company came in at €423 million (£365 million), up by four per cent from the same time last year, while operating income rose by nine per cent.

Werner Brandt, chief financial officer of SAP, said in a statement: “Despite the challenging economic conditions, the strength of our business model combined with a strong cost discipline has proven itself once again by enabling us to report another quarter of strong operating margin growth.”

However, software revenues fell dramatically – down 40 per cent from €898 million in the second quarter of 2008 to just €543 million this quarter.

The company is positive about the future however and, even with a one off restructuring charge of €200 million, it expects a good operating margin through new products and existing customers for the rest of the year.

Leo Apotheker, chief executive officer of SAP, said: “While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year.”

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