Feeds

SAP pulls guidance, bullish on margins

Good Q3

  • alert
  • submit to reddit

Internet Security Threat Report 2014

ComputerWire: IT Industry Intelligence

SAP AG axed its revenue guidance yesterday as it unveiled third quarter results that gave a boost to the lagging tech market.

The enterprise software giant turned in sales of 1.7bn euros ($1.65bn), up 3% on the year. Operating income rose 111% to 336m euros ($325.9m), while net income was up 446% to 202 euros ($195.9m). The Walldorf, Germany-based vendor's product revenue, at 1bn euros ($970m), was up 4%, while service revenue was up 1% to 642 euros ($622.6m).

For the year to date, sales were up 2% to 5.1bn euros ($5bn). Operating profits so far stand at 842m euros ($816.6m), up 14%, while net income grew 87% to 35m euros ($33.9m).

The results were better than analysts had hoped, and the company's shares surged 25.75% in the US to close at $16.85. Even the company's dropping of its earlier forecast of a 5% to 10% increase in sales this year was seen as a plus, as that target was seen as increasingly unfeasible.

SAP said that even though it expected to continue gaining market share, it was dropping the revenue forecast due to an unpredictable political and economic environment which made forecasting difficult. However, it threw investors a bone by saying that even if 2002 revenues were relatively flat on 2001, it expected operating margins to be 1% above last year's 20%.

© ComputerWire

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.