SAP beats low expectations, forecasts growth
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Despite 28% decline in software sales, enterprise application vendor’s full year financial results exceeded its own predictions
Enterprise application vendor SAP today revealed that total revenues for the past financial year were $10.7 billion, down 8% from the previous year’s total of $11.7 billion. “I am pleased to report that we exceeded our initial expectations,” said SAP CFO Werner Brandt in a statement announcing the results.
The company’s decline in sales was driven by a 28% drop in software license revenues, down to $2.6 billion for the year. Fortunately for SAP, services revenue – which represents the majority of its takings – fell only 3% to $8.2 billion. This highlights why the recent spat over the pricing of its support services is so critical for the company.
Net income at the company fell 4% to $1.8 billion.
SAP CEO Leo Apotheker predicted that the company would return to revenue growth in 2010, “although the market continues to be challenging and uncertainty among customers still exists”.
