Feeds

SAP happy enough, despite lack of massive lawsuit win this year

McDermott boasts of huge bulge into the cloud

Remote control for virtualized desktops

German software maker SAP reported a massive plunge in Q3 profits but an operational slip was not to blame, just a one-off gain from its lawsuit with Oracle a year ago.

This still left the vendor with a bottom line of €618m, albeit 51 per cent lower than the €1.25bn ($1.62bn) it banked 12 months ago when earnings were boosted €566m ($723m) by a judge reducing damages in a lawsuit brought by Oracle.

The positive momentum in sales seen last quarter continued with turnover up 16 per cent year-on-year to €3.95bn, fuelled by operations in the Americas and Asia Pacific, up 37 and 18 per cent respectively, which offset flat European revenues.

Software licensing went up 17 per cent to €1.02bn, and support grew 16 per cent to €2.1bn, but the "innovation" hotspots for SAP that will become a bigger part of its future did well too.

The in-memory database tech HANA grew to €83m, up from €34m; mobile application extensions reached €48m; and cloudy support and subscriptions hit €80m up from €4m.

Co-CEO Bill McDermott claimed on a conference call with analysts that "we have tremendous growth in the cloud".

In fact SAP forecasted bullishly that it would be the first vendor in the cloud to turn a profit, with €2bn annually earmarked from 2015, compared to the losses the unit is generating today.

SAP raised 2012 revenue outlook, saying sales will reach the upper end of its 10.5 to 12.5 per cent forecast, due in part to the recent acquisition of Ariba.

The legal spat with Larry Ellison's army arose after Oracle sued former SAP sub TomorrowNow over copyright infringement, initially resulting in damages of $1.3bn.

A judge later overturned that decision and told Larry that his firm could have $306m in damages plus legal costs. It emerged last month that Oracle is pushing for higher damages. ®

Beginner's guide to SSL certificates

More from The Register

next story
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Post-Microsoft, post-PC programming: The portable REVOLUTION
Code jockeys: count up and grab your fabulous tablets
Twitter App Graph exposes smartphone spyware feature
You don't want everyone to compile app lists from your fondleware? BAD LUCK
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
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.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.