Feeds

SAP profits up, sales down

Cost-cutting

  • alert
  • submit to reddit

High performance access to file storage

First the bad news: revenues were down in Q2 and a weak dollar and a sluggish global economy means that sales will be weak, at least for the rest of the year. for SAP, Europe's biggest software house.

Now for the good news for SAP shareholders: cost-cutting means that profits are up and are higher than consensus analyst forecasts. Also SAP, by its own estimates, gained share against its major rivals, Oracle, Peoplesoft and JD Edwards, during the quarter.

Group revenues in Q2 were €1.2bn, down 8 per cent year-on-year, but up 2 per cent, if adjusted for currency differences. Operating profit before charges stock-based compensation and acquisition was €388m (2002: €324m), an increase attributed to strict cost controls. Net income advanced to &euro,219m, a big leap from last year's loss of &euro232m, even when you factor in the €300m one off charge factored into the latter figure.

This year the dollar has fallen 25 per cent against the euro, the currency in which SAP reports its earnings; there is little likelihood of a return to a strong dollar, until the US gets to grips with its current account and trade deficits. Which means that SAP has to pedal (and peddle) a lot harder in America to stand still. ®

High performance access to file storage

More from The Register

next story
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.