Business software maker SAP on Tuesday reported strong second quarter revenue as sales of software and software-related services expanded, but the company’s net profit declined due to charges related to its acquisition of France’s Business Objects SA.
SAP reported a net profit of US$641.6 million for the second quarter, down 9 per cent from the same time last year. However, sales increased 18 per cent year-on-year.
“We can attribute our strong performance to good overall execution and the continued strength in all three core areas of our business, the established business, the mid-market and business user solutions,” the company said in a statement.
SAP also refined its full-year 2008 outlook to the top end of its former guidance, a sign business remains strong. The company now expects full year non-GAAP software and software-related service revenue to at the top end of the 24 per cent to 27 per cent range it had previously given. SAP’s full year operating margin will also reach the upper range of the 28.5 per cent to 29 per cent range provided previously.
The revised outlook figures do not include any negative impact from SAP’s