Net income up 12% on year ago quarter
SAP has reported total revenues of €2.51 billion for the third quarter of 2009, a decrease of 9% compared to €2.76 billion for the same period last year. Software revenues were down 31% to €525m , compared to €763m and software and software-related service revenues were down 3% to €1.94 billion, compared to €1.99 billion.
For the quarter ended September 30, 2009, the company posted an operating income of €606m, a decrease of 1% compared to €614m for the same period a year ago. Operating income was negatively impacted by restructuring charges of €21m resulting from the previously announced reduction of positions.
Operating income was also affected by non-recurring items, particularly litigation expenses and profit resulting from reversals of provisions for the acquisition of Business Objects. Operating margin was 24.2%, an increase of 2.0 percentage points compared to 22.2% for the same period last year. The restructuring charges resulting from the reduction of positions negatively impacted the operating margin by 0.8 percentage points.
The company posted a net income of €435m for the third quarter of 2009, an increase of 12% compared to €389m for the same period previous year.
Werner Brandt, CFO of SAP, said: “We are pleased to report another quarter of increasing margins despite a decline in revenues. This demonstrates our continued success in maintaining tight cost controls. While we are seeing signs of stabilisation in the general environment, the market remains difficult. Third quarter software and software-related service revenues came in lower than we expected mainly because of a particularly challenging environment in the emerging markets and Japan.”
The company expects its full year operating margin to be in the range of 25.5% to 27% at constant currencies, excluding non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges.