SAP spins out optimistic outlook as Q2 sales fall 10%
Eyeballs tasty operating margin, glosses over revs fall
German business management software maker SAP saw its second quarter total revenues drop 10 per cent compared to the same period a year earlier.
SAP reported total sales for the Q2 period ended 30 June of €2.58bn, compared to €2.86bn for the same quarter a year earlier.
Despite that decline, the company raised the outlook for its 2009 operating margin.
SAP expects its full year operating margin, excluding one-off items, to hit between the 25.5 per cent and 27.0 per cent mark at constant currencies. It will include the one-time job cut charges of €200m that were announced last year.
The software vendor had previously predicted an operating margin of 24.5 per cent to 25.5 per cent for 2009.
But SAP added that software and software-related revs at the firm were likely to fall by up to six per cent.
It saw net income of €423m, up four per cent on its 2008 Q2 results.
“While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year,” said SAP boss Léo Apotheker.
“Our robust business model provides us the ability to continue to innovate, which we believe is the foundation for future growth. I am excited about the new products that we are delivering to our customers, solutions that provide them more transparency and clarity into their businesses, which are especially crucial in times like these.”
SAP didn't provide an outlook for sales and profit for the year. ®