SAP predicts return to growth in 2010

Vendor ready to bounce back after posting drop in sales and profits in 2009

SAP predicts software and software-related services will grow by 4 to 8 per cent in 2010

Business applications giant SAP claims it will return to growth in 2010, despite its preliminary full-year 2009 results showing an eight per cent drop in sales.

The German-based goliath saw US GAAP revenue plunge to €10.67bn (€9.3bn) in the 12 months to 31 December, down from €11.57bn in 2008.

US GAAP operating profit fell by seven per cent to €2.64bn.

However, SAP shaved €650m off its cost base last year and claims it is now primed for both top-line and bottom-line growth in 2010.

Léo Apotheker, chief executive of SAP, said: “Along with margin expansion for 2010, we are also ready to return to top-line growth, although the market continues to be challenging and uncertainty among customers still exists.

“Despite the difficult environment last year, we never lost focus on innovation, which is the cornerstone for growth going forward.”

In 2009, non-GAAP software and software-related service revenue fell five per cent to €8.21bn. SAP expects that figure to grow by between four and eight per cent in 2010.

Non-IFRS operating margins are also expected to improve at constant currencies – from 27.4 per cent last year to between 30 and 31 per cent this year.

Werner Brandt, chief financial officer at SAP, said: “For 2010, we will continue to maintain strict cost controls with a spotlight on further margin expansion.”