SAP's HANA, Cloud Software Key to Improved Q3 Profits
HANA, the creation of SAP co-founder Hasso Plattner, brought $204 million to the revenue line in the third quarter, up from $134 million in the second quarter--and year-to-year growth of 79 percent.SAP, empowered by growing interest in its HANA in-memory database and a sharp increase in its cloud software business, beat Wall Street estimates in its quarterly earnings report Oct. 21, and the stock price zoomed as a result. HANA, the creation of SAP co-founder Hasso Plattner, brought $204 million to the revenue line in the third quarter, up from $134 million in the second quarter, for impressive year-to-year growth of 79 percent. SAP revealed that revenue was tallied at $5.5 billion for the quarter, a 2 percent improvement over the year-ago period. Earnings per share were $1.03, beating the analysts' consensus that predicted 98 cents. The stock price closed on an increase of 3.6 percent to $76.41 and was up slightly to $77 in after-hours trading.
SAP's HANA DB, launched in December 2010, takes advantage of the low cost of main memory (RAM), data processing abilities of multi-core processors and the fast data access of solid-state drives relative to traditional hard drives to deliver better performance of analytical and transactional applications.