SAP Quarterly Software Sales Surpass 1 Billion Euros

SAP, Walldorf, Germany, also reported that revenue from cloud subscriptions and support reached 52 million Euros ($62.9 million) in the quarter, including revenue from its SuccessFactors acquisition.

For the second quarter ended June 30, SAP reported total revenue of 3.9 billion Euros ($4.7 billion), up 18 percent from 3.3 billion Euros ($4.0 billion) in the second quarter of fiscal 2011. Profit after tax was 661 million Euros ($799 million), up 12 percent from 588 million Euros ($711 million) in the earlier quarter.

"We reached the upper end of our second-quarter software revenue guidance range and were at the midpoint of the software and software-related service revenue guidance range," said Werner Brandt, SAP CFO, in a statement. He said the company was on track to meet its 2012 targets and its longer-range 2015 goals.

Software sales in the second quarter were up 26 percent to 1.1 billion Euros ($1.3 billion) from one year earlier. Support revenue grew 16 percent to just more than 2 billion Euros ($2.4 billion).

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Growing its cloud software offerings is one of SAP's major goals. Revenue from cloud subscriptions and services one year earlier was only 4 million Euros ($4.8 million). While some of the most recent quarter's 52 million Euros in cloud-related revenue was generated by the company's Business ByDesign on-demand applications, much of it was the result of SAP's $3.4 billion acquisition earlier this year of SuccessFactors, the provider of cloud-based human capital management applications.

Sales for the first six months of fiscal 2012 reached 7.2 billion Euros ($8.8 billion), up 15 percent from 6.3 billion Euros ($7.6 billion) in the first half of fiscal 2011.

Software sales for the first half of fiscal 2012 were 1.7 billion Euros ($2.0 billion), up 17 percent from 1.5 billion Euros ($1.8 billion) one year earlier. Revenue from cloud subscriptions and support in the first six months was 81 million ($97.7 million) Euros compared to 8 million Euros ($9.7 million) in the same period one year ago.

Support-related revenue in the first half of fiscal 2012 was 4.0 billion Euros ($4.8 billion), up 15 percent from 3.4 billion Euros ($4.2 billion) in the same period one year ago.

PUBLISHED JULY 24, 2012