Results Q2 2010: 16% Growth

Feature Article | July 27, 2010 by admin

Start frei für Business ByDesign 2.5 (Foto: Frank Völkel)

Available on July 31st: SAP Business ByDesign 2.5 (photo: Frank Völkel)

For the second quarter 2010, IFRS software and software-related service revenues were €2.258 billion (2009: €1.953 billion), an increase of 16%. IFRS software revenues were €637 million (2009: €543 million), an increase of 17%. IFRS operating margin came in at 26.7% (2009: 24.9%), an increase of 1.8 percentage points.

SAP expects full-year 2010 non-IFRS software and software-related service revenue to increase in a range of 9% – 11% at constant currencies (2009: €8.2 billion). SAP’s business, excluding the contribution from Sybase, is expected to contribute 6 – 8 percentage points to this growth. The Company expects the full-year 2010 Non-IFRS operating margin to be in a range of 30% – 31% (2009: 27.4%) at constant currencies.

Comments from executives

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

“Customers continue to invest for growth across large, midsized, and small enterprises and within many industries,” said Bill McDermott, co-CEO of SAP. “We had outstanding growth in strategic markets like the U.S., 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, as well as focused execution on our go-to-market strategy.”

“Our focus on customer-driven innovation is positively impacting our growth,”  said Jim Hagemann Snabe, Co-CEO of SAP. 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 small and midsized enterprise (SME) segment. Our success in the SME segment creates a strong foundation for the new version of our on-demand platform SAP Business ByDesign. The new version will be available on time on July 31st and is ready for volume deployment in six countries.”

SAP Completes Tender Offer for Shares of Sybase

SAP also announced today that it has completed the cash tender offer for all outstanding shares of common stock of Sybase. Under the terms of the agreement, Sybase will operate as a separate company under the leadership of current CEO John Chen and will remain focused on its core business.  Sybase will continue to execute plans and product strategies around its core database and information management business and Sybase’s expertise in the mobile business will be a key driver for the Sybase and SAP vision for the unwired enterprise.

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