SAP previewed second-quarter earnings results, showing double-digit growth in revenue based on strong sales of its HANA database products and "synergy" with the company’s 2011 SuccessFactors acquisition.
Enterprise software vendor SAP announced pre-released
second-quarter financial numbers July 12, showing a 7 percent profit increase,
to $1.12 billion, on an 18 percent jump in revenue, to $4.8 billion, compared
with the year-ago quarter.
Company officials based the solid numbers in
part on a strong showing for its
HANA
in-memory data analytics software.
The results exceeded the estimates of
financial analysts who follow SAP. Based on non-IFRS (or non-International
Financial Reporting Standards) measures, SAPs earnings per share were $1.12 on
$4.8 billion in revenue, versus analysts estimates of $1.05 EPS on $4.05
billion in revenue.
Revenue for software sales alone rose by 26
percent to $1.3 billion, from $1.03 billion in the second quarter of 2011. The
German-based SAP noted that this was the first quarter in which its software
revenue topped the 1 billion euro mark.
SAP noted in a statement that its HANA
database business had an outstanding quarter, with significant deals in all
geographic regions for the quarter ended June 30. The HANA platform of SAP
software running on partner hardware is designed to do data analytics faster
because data is stored in server memory rather than retrieved from disk
storage, which takes longer.
SAP also noted sales growth due to synergies
between SAP and
SuccessFactors,
a company it acquired in late 2011 for $3.84 billion, which handles key
business functions in the cloud, including human resources, finance, payroll
and supply-chain management. However, expenses associated with the acquisition
reduced SAPs operating margin in the quarter by 2.4 percentage points to 23.6
percent from the year-ago quarter.
For the first half of 2012, SAP reported an
operating profit of $1.9 billion, up 7 percent from the first half of 2011, on
revenue of $8.9 billion, up 15 percent from last year. Software revenue alone
rose by 17 percent, to $2.08 billion.
These results are preliminary and unaudited;
SAP will report complete results July 24.
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