SAP Quarterly Software Sales Surpass 1 Billion Euros

Tuesday 24 July 2012


SAP's software sales exceeded 1 billion Euros in its second quarter, the company said Tuesday, the first time the company's quarterly software sales have surpassed that threshold.

SAP, Walldorf, Germany, also reported that revenue from cloud subscriptions and support reached 52 million Euros ($62.9 million) in the quarter, including revenue from its SuccessFactors acquisition.

For the second quarter ended June 30, SAP reported total revenue of 3.9 billion Euros ($4.7 billion), up 18 percent from 3.3 billion Euros ($4.0 billion) in the second quarter of fiscal 2011. Profit after tax was 661 million Euros ($799 million), up 12 percent from 588 million Euros ($711 million) in the earlier quarter.

"We reached the upper end of our second-quarter software revenue guidance range and were at the midpoint of the software and software-related service revenue guidance range," said Werner Brandt, SAP CFO, in a statement. He said the company was on track to meet its 2012 targets and its longer-range 2015 goals.

Software sales in the second quarter were up 26 percent to 1.1 billion Euros ($1.3 billion) from one year earlier. Support revenue grew 16 percent to just more than 2 billion Euros ($2.4 billion).

Growing its cloud software offerings is one of SAP's major goals. Revenue from cloud subscriptions and services one year earlier was only 4 million Euros ($4.8 million). While some of the most recent quarter's 52 million Euros in cloud-related revenue was generated by the company's Business ByDesign on-demand applications, much of it was the result of SAP's $3.4 billion acquisition earlier this year of SuccessFactors, the provider of cloud-based human capital management applications.

Sales for the first six months of fiscal 2012 reached 7.2 billion Euros ($8.8 billion), up 15 percent from 6.3 billion Euros ($7.6 billion) in the first half of fiscal 2011.

Software sales for the first half of fiscal 2012 were 1.7 billion Euros ($2.0 billion), up 17 percent from 1.5 billion Euros ($1.8 billion) one year earlier. Revenue from cloud subscriptions and support in the first six months was 81 million ($97.7 million) Euros compared to 8 million Euros ($9.7 million) in the same period one year ago.

Support-related revenue in the first half of fiscal 2012 was 4.0 billion Euros ($4.8 billion), up 15 percent from 3.4 billion Euros ($4.2 billion) in the same period one year ago.

0 comments: