SAP reports decrease in first quarter profit

Software giant posts 16 per cent net profit slip, but remains positive about pulling through recession

SAP will continue to maintain tight cost controls

Software giant SAP has reported a 16 per cent dip in net profit for its fiscal first quarter of 2009 – but vowed to exit the recession in a strong position.

Net profit for the quarter fell from €242m (£218m) to €204m on an annual comparison, while US GAAP software revenues plunged 33 per cent to €418m.

Léo Apotheker, co-chief executive of SAP, said: “While visibility for software revenues remains limited, we continue to take the necessary steps to protect our margin in this tough operating environment.

“The cost containment measures that we initiated in October of last year and carried into the first quarter of 2009 have really taken hold, and we are pleased with the resulting margin performance – we expect to exit this recession even stronger, just like we did after the downturn earlier in the decade.”

US GAAP software and software-related service revenues were €1.74bn, flat year on year.

Apotheker said that SAP will continue to maintain tight cost controls.

“Our ability to deliver good margin performance in this environment, especially when you consider the restructuring charges related to the reduction of positions, is due to the strength, flexibility and scalability of our business model,” he added.