SAP Reports Profitable Quarter

SAP AG (NYSE:SAP), the German software giant and leader in enterprise software has reported an increase in the profits and sales figures in the third quarter.

The company’s profits has exceeded the expected figures and has laid more emphasis on the higher spectrum of its forecast for the whole year as it has got many orders still in the pipeline as the investments in the information technology sector is going strong.

The Company’s operating profits has increased by about 23 percent to reach 1.13 billion euros which is around $1.57 billion according to the non international financial reporting standards. The sales have also shown a 12 percent increase to reach 3.41 billion euros said SAP AG in a statement earlier today.

The complete financial results for the third quarter along with the figures for net profit will be announced on Oct 26.  The company’s license sales which are crucial for any software manufacturer increased by around 28 percent to 841 million euros and according to forecast made by the analysts, the license sales were to reach 738 million euros and similarly the operating profits should have been 877 million euros.

SAP’s acquisition of Sybase, the United States based software manufacturer has boosted the company’s potential and its performance especially in the mobile solutions and internet based subscription software which has been recently launched by the company. The technology obtained from Sybase after the $ 5.8 billion deal in the previous year allows high speed data analytics and gives an edge to the company. Sap has already drafted a plan to achieve 20 billion euros in total revenue by 2015 as compared to 12.5 billion euros in the previous year.

SAP expects to reach the higher ends of its forecasts for the current year. The targeted operating profit range was forecasted to be between 4.45 billion euros to 4.65 billion euros at constant currencies.

Werner Brandt, the Chief Financial Officer had said that the current financial crisis and global economic slowdown has not hurt the wider economy and at present SAP has no reasons to alter its forecasts for the full year.

In other news, the investment arm of SAP AG, SAP Ventures has made an investment of about $ 10 million in One97 Communications, a mobile internet services company in Delhi, India. One97 is responsible for delivering mobile content, advertisements and other commerce services to various multinationals like Samsung, Coca Cola, General Motors and Vodafone.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.