Feeds

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

McDermott boasts of huge bulge into the cloud

Designing a Defense for Mobile Applications

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. ®

Boost IT visibility and business value

More from The Register

next story
Whoah! How many Google Play apps want to read your texts?
Google's app permissions far too lax – security firm survey
Chrome browser has been DRAINING PC batteries for YEARS
Google is only now fixing ancient, energy-sapping bug
Do YOU work at Microsoft? Um. Are you SURE about that?
Nokia and marketing types first to get the bullet, says report
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
Big Blue Apple: IBM to sell iPads, iPhones to enterprises
iOS/2 gear loaded with apps for big biz ... uh oh BlackBerry
OpenWRT gets native IPv6 slurping in major refresh
Also faster init and a new packages system
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.