SAP Sales and Profits Surge in Q3

October 14 00:00 2011

New York, October 14 (RainbowNewsLine.com) – SAP AG has reported a significant increase in in sales and profits for Q3 Friday amid a very “strong pipeline” and continuous flow of companies willing to invest in information technology.

Although the full third-quarter results will only be released on Oct. 26, the company has indicated that its operating profit has registered a more than two-fold rise to €1.76 billion ($2.42 billion) from €716 million a year ago. Its software and software-related service revenue, which includes new licenses and maintenance, increased to €2.69 billion registering a rise of 16%. License sales rose by 28% to €841 million.

SAP, based in southwestern Germany, came out of its stagnation during the economic downturn caused by the collapse of Lehman Brothers and returned to growth. It expects that the growth pattern will continue in the coming years. The business of its arch rival Oracle (NASDAQ: ORCL) is more diversified and has reported a 17% increase in new software-license sales for the quarter ended Aug.31.

SAP has worked out a detailed plan under which it will earn total revenue of €20 billion by the middle of the decade, up from €12.5 billion last year. In the current year, it expects to reach the high end of its targets.

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