Company posts 146% growth in operating profit; software revenue grows 28%
SAP third quarter software revenue grew at its fastest rate in a decade, as its operating profit soared 146% to reach €1.76bn, compared to €716m in 2010.
The company’s total revenue was €3.41bn, compared to 2010 figures of €3bn, an increase of 14%.
The company IFRS operating margin grew 27.8% to reach 51.6%, compared to last year’s 23.8%. IFRS profit after tax was €1.25bn (2010: €501m), an increase of 150%.
SAP’s basic earnings per share was €1.05 (2010: €0.42), an increase of 150%.
Software revenue grew 28% to reach €841m, compared to €656m in 2010, while support revenue climbed 13% to reach €1.757m.
The Germany-based enterprise application software company said that efficiency gains combined with operational efficiency led to the record performance.
SAP co-CEO Bill McDermott said, "This is a growth company executing on a powerful vision."
"SAP’s third quarter software revenue grew at its fastest rate in a decade because customers are shifting their investments to software that helps them grow and innovate. Our core solutions together with our industry-leading innovation in mobility, in-memory computing and cloud deliver exceptional value to our customers across all regions and industries," added McDermott.
The company said that its pipeline continues to remain very strong and companies continue to invest in IT. It said that despite the uncertainty in "macroeconomic environment", its outlook for 2011 remains unchanged.
SAP CFO Werner Brandt said, "Our momentum puts us on pace to achieve a record cash flow year."
"We are very pleased with the exceptionally strong top-line growth this quarter. Continued efficiency gains combined with operational excellence led to a very strong operating margin performance," said Brandt.