SAP happy with Q2 financials

Software vendor completes acquisition of Sybase as demand for its software and services continues

SAP on a roll: renewed customer confidence has helped it grow revenues

SAP is celebrating a 16 per cent spike in software and service revenue for its second quarter 2010.

The vendor saw software revenue increase 17 per cent to €637m (£535m) for the quarter ended 30 June 2010, compared with €543m in Q2 2009, but combined software and software-related service revenue hit €2.25bn compared with €1.9bn in 2009. Total revenue for the quarter stood at €2.89bn compared with €2.57bn the previous year.

Operating profit leapt 21 per cent to €774m for the quarter, compared with €641m in 2009.

Werner Brandt, chief financial officer at SAP, said: “We are pleased to report another quarter of growth in software and software-related service revenue. The top-line results were driven by continued growth in software revenue, strong support revenue, mainly from the majority of our customers who endorsed Enterprise Support, and double-digit growth in subscription revenue.”

Bill McDermott, co-chief executive of SAP, said: “Customers continue to invest for growth across large, mid-sized and small enterprises and within many industries. We had outstanding growth in strategic markets such as the US and we saw continued double-digit growth in key emerging markets in Latin America and Asia. This solid performance is due to renewed customer confidence, an ever-expanding ecosystem and well as focused execution on our go-to-market strategy.”

Jim Hageman Snabe, co-chief executive of SAP, said: “Our focus on customer-driven innovation is positively impacting our growth, Reaching more than 100,000 customers is a testament to the inroads we have made in expanding our volume business and our success in the SME segment.”

SAP also announced it has completed the cash tender offer for all outstanding shares of the common stock of Sybase. As a result of the deal, Sybase will operate as a separate company under existing chief executive John Chen, and will remain focused on its core database and information management business.