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Business

German software firm SAP logs decent third-quarter profits

Germany's business management software company SAP has reported a jump in quarterly bottom-line earnings. Growth in its cloud computing segment helped it sit pretty in a rather volatile market environment.

Walldorf-based SAP announced October 21 its net profit surged by 23 percent in the third quarter, reaching 762 million euros ($1.036 billion).

The company's cloud computing business was particularly strong, seeing revenues in the segment triple to 191 million euros from 63 million euros year-on-year, indicating a strong interest by clients to access SAP's computers over the Internet rather than having their software installed and maintained on-site.

"The industry's move to cloud and mobile computing is a fundamental transition of the industry and SAP is clearly leading the switch to the new way of doing this," SAP Co-CEO Jim Hagemann Snabe said in a statement.

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Chief Financial Officer Werner Brandt noted SAP had "a very strong performance in the third quarter" despite shifts in currency exchange rates affecting the firm's revenues which only grew by 2 percent year-on-year and thus were lower than analysts had penciled in.

The company also cited a mixed market environment in Europe, the Middle East and Africa, pointing specifically to southern European nations such as Spain, Portugal and Italy which had suffered from slow growth and record-high unemployment.

SAP insisted its Hana database technology allowing for real-time data analysis had been a huge success again, with third-quarter revenues from it soaring by 90 percent to 149 million euros.

SAP had a workforce of 66,061 full-time workers globally at the end of the quarter, 380 more than a quarter earlier, not counting staff from companies it had acquired.

hg/kms (dpa, AP)

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