Member access

4-Traders Homepage  >  Shares  >  Xetra  >  SAP SE    SAP   DE0007164600


Real-time Quote. Real-time TRADEGATE AG - 04/27 05:29:02 pm
70.6150 EUR   +2.16%
09:26a SAP SE : Unveils Sports One Solution for Soccer
07:57a SAP SE : Capgemini Receives 2015 SAP Pinnacle Award: Services Transf..
06:50a SAP SE : Unveils ® Sports One Solution for Soccer
News SummaryMost relevantAll newsSector news 

SAP Defies Industry Trend

04/19/2013 | 02:15am US/Eastern

SAP AG (>> SAP AG), the world's third-largest software maker by sales, continued to outperform its business-software peers Friday as flourishing sales of database and web-based applications pulled profits higher.

The company, based in Walldorf, Germany, outshone main rival Oracle Corp. (>> Oracle Corporation), posting a 17% rise in net profit to EUR520 million ($678.7 million) and a 7% increase in revenue. Oracle's net profit, in contrast, was flat in the December-to-February quarter as revenue declined slightly.

Accenture (>> Accenture Plc), which helps companies to implement software from SAP, Oracle and the like, also gave a disappointing outlook.

"We gained significant market share, in particular from our primary competitor, but also, I'd say, from most of our competitors," said Jim Hagemann Snabe, SAP Co-Chief Executive.

SAP makes software products that help companies to do their accounting and manage relationships with customers. The group, whose clients include many of the world's largest corporations like Procter & Gamble (>> The Procter & Gamble Company), Intel (>> Intel Corporation) and Lenovo (>> Lenovo Group Limited (ADR)), has branched out into fields such as cloud and mobile applications in recent years, and has great hopes for its new database software, called HANA, which allows customers to analyze vast amounts of data in a short time.

Revenue from cloud-based software and of related support more than quadrupled compared with a year earlier, outpacing (>>, inc.), the leader in the field. Salesforce's last earnings report showed a 32% revenue increase in the November-to-January period. SAP's EUR137 million in cloud revenue, however, trails's $835 million.

Revenue from HANA database software revenue also tripled year-on-year to EUR86 million.

Analysts, however, said that software revenues, which rose only 3%, and earnings before interest and tax were below their expectations.

Co-CEO Bill McDermott said a weakening business in Asia was the main reason for the slowdown. Vacancies at top management positions in the region were temporarily unfilled, which prompted some customers to defer purchases, according to Mr. McDermott.

However, business in the region will likely catch up in the second quarter as the positions have now been filled, he said.

Software revenue will continue to rise medium and long-term despite the recent slowdown, predicted Mr. McDermott.

In most cases, web-based applications won't replace on-premise software because software can handle more complex tasks, he said. Customers will use both on-premise and cloud applications, he said.

The company confirmed its full-year guidance and said it fully expects to meet its 2015 goals.

SAP is forecasting an increase in software and cloud subscription revenue of 14% to 20% and operating profit between EUR5.85 billion and EUR5.95 billion in 2013. The numbers are adjusted for currency swings and not consistent with international financial reporting standards. By 2015, it expects to reach revenue of more than EUR20 billion.

Write to Friedrich Geiger at

React to this article
Latest news on SAP SE
09:26a SAP SE : Unveils Sports One Solution for Soccer
07:57a SAP SE : Capgemini Receives 2015 SAP Pinnacle Award: Services Transformation Par..
06:50a SAP SE : Unveils ® Sports One Solution for Soccer
05:16a SAP SE : April 27, 2015SAP Unveils SAP® Sports One Solution for Soccer ›
03:04a SAP SE : Revelation Software Concepts Expands Open Integrations for SAP Change C..
04/23DJNasdaq Surge Lifts Internet Boosters of the Past
04/23 SAP SE : New Single, User-Centric Support Entry Point for All SAP Customers: SAP..
04/23 NET ONE SYSTEMS : to Utilize SAP S/4HANA, the Next-Generation Business Suite
04/23 SAP SE : April 23, 2015Why Talent Drives Growth: Study from Oxford Economics and..
04/23 SAP SE : April 23, 2015New Single, User-Centric Support Entry Point for All SAP ..
Duration : Period :
SAP SE Technical Analysis Chart | SAP | DE0007164600 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes