SAP Q1 revenue up, but profits growth slow
- — 28 April, 2011 16:38
SAP saw revenue rise by 21 percent in the quarter ended March 31, with double-digit growth in all regions driven by increased software business from partners and the channel.
Profit growth was however slow at 4 percent when calculated to international financial reporting standards (IFRS), after a 24 percent growth in operating expenses, the company reported on Thursday.
Revenue in the quarter was €3 billion (US$4.2 billion at the exchange rate on the last day of the quarter), while net profit was €403 million. Software and software-related service revenue was €2.3 billion, up by 20 percent from the same quarter last year. Software revenue of €583 million was up 26 percent.
The company’s non-IFRS net profit was however up 20 percent, but this figure does not include a deferred support revenue write-down from acquisitions, acquisition-related charges, discontinued activities, and stock-based compensation expenses, SAP said.
The company has confirmed its forecast for the full year that it had made in January. It expects full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10 to14 percent at constant currencies.
Customers are embracing the company’s innovation and open ecosystem strategy, which is driving demand across its portfolio of business applications, analytics, and enterprise mobility solutions, SAP said.