SAP Announces Q2 Results

Updated: July 30, 2009

SAP announces a Q2 Net Income of €423m, up from €408m in Q2/2008.

Financial Highlights:

  • Software sales drop 40 per cent year-over-year, from €898m to €543m
  • Software maintenance revenues increase 22 per cent year-over-year
  • 2,800 jobs cut so far in 2009
  • Raises forecast for 2009 EBIT from 25.5 per cent and 27 per cent, previously 25.5 per cent was the high range.
  • Issued a €660m promissory note, or "Schuldschein" as its known in Germany
  • Increase in NI chalked up to cost savings, site reduced restructuring costs
    • Restructuring costs for 2009 expected to hit the low end of the €200m-€500m estimate
    • "For the remainder of the year we expect to maintain tight cost controls," -Werner Brandt, chief financial officer

Business Highlights

  • Announced details of it's on-demand software for large enterprises, where "function-specific software applications" will plug in to customer's on-site systems
  • Made available worldwide their Business Suite 7, their next-generation software suite enabled by service-oriented architecture (SOA).
  • Announced SAP BusinessObjects Explorer, "enabling customers to navigate mountains of business data at the speed of thought and giving them a clear view across their organizations"
  • Introduced additional customers for SAP Business ByDesign, SAP's fully integrated, on-demand business solution that "enables midsize companies from various industries to improve transparency and business operations, and support international growth, while helping to reduce IT costs"
  • Acquisitions:
    • Highdeal-real-time billing solutions for telecommunications
    • Clear Standards Inc.-enterprise carbon management solutions
  • Closed contracts:
    • Federal Interior Ministry of Rheinland-Pfalz, Germany,
    • Group Danone,Shoosmiths, and Statoil ASA in EMEA;
    • Baker Hughes, Boston University, and Confederação SICREDI in Americas;
    • China Export & Credit Insurance Company, Commonwealth Bank of Australia, Ministry of Finance, Singapore, and Tata Teleservices Ltd in Asia Pacific Japan.

Shares of SAP traded up 3.94% from yesterdays close of $44.88 on the NYSE.

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