SAP issues preliminary Q2 results, says software revenue up 26 percent

SAP's software revenue grew 26 percent in its second quarter to US$1.30 billion

By Chris Kanaracus, Boston | Friday, 13 July 2012
SAP's software revenue grew 26 percent in its second quarter to €1.06 billion (US$1.30 billion), coming in at the high end of expectations, the company announced Thursday.

Software and software-related services revenues rose 21 percent to €3.12 billion, according to SAP, which will release its full second-quarter results on July 24. The results were reported according to IFRS (international financial reporting standards).

Operating profit was up 7 percent to €0.92 billion, SAP said.

"Our record performance speaks for itself. We delivered double-digit growth in all regions driven by strong momentum from the core as well as SAP HANA, mobile and the cloud," co-CEOs Bill McDermott and Jim Hagemann Snabe said in a statement.

SAP's HANA in-memory database and other database technologies "had an outstanding quarter with significant deals in all regions," according to SAP. HANA was first released last year and is being positioned as a future convergence point for all of SAP's software.

The company recently acquired SuccessFactors to improve its hand in the cloud software market. Through that move and other activities, SAP's company headcount has grown by about 5,000 so far this year, according to Thursday's announcement.