Raises outlook for 2009 operating margin
SAP has reported a 10% drop in its revenue for the second quarter of 2009 when compared to the same period last year. Despite the decline, the company has raised its outlook for 2009 operating margin giving hopes for the technology sector.
The company expects its full-year 2009 operating margin to be in the range of 25.5% to 27% at constant currencies, up from previous guidance of 24.5% to 25.5%. This includes one-time restructuring charges of €200m, as a result of the previously announced job cuts.
Werner Brandt, CFO of SAP, said: “Despite the challenging economic conditions, the strength of our business model combined with a strong cost discipline has proven itself once again by enabling us to report another quarter of strong operating margin growth. For the remainder of the year, we expect to maintain tight cost controls in all areas of the Company.”
The company has posted a revenue of €2.58 billion, compared with €2.86 billion for the second quarter of 2008. Net profit increased by 3.7% to €423m, while it was €408m for the same quarter a year-ago.
Software revenues were €543 million for the second quarter of 2009, down 40% from €898m for the same period last year. Revenues from software and software-related service decreased 5% to €1.95 billion from €2.06 billion on year-ago quarter.
Leo Apotheker, CEO of SAP, said: “While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year.”