SAP Reports 14 Percent Q2 Sales Growth

Sales growth was particularly strong (34 percent) in the Europe/Middle East/Africa region, easing concerns that the European financial crisis might be hurting sales. Sales growth also was strong in the Asia Pacific/Japan region (28 percent) and the Americas (18 percent).

For the second quarter ended June 30 SAP reported revenue of 3.3 billion Euros ($4.8 billion), up 14 percent from 2.9 billion Euros ($4.2 billion) in the same period one year earlier. Net income grew 20 percent to 588 million Euros ($849.6 million) from 491 million Euros ($709.5 million) last year.

Software revenue surged 26 percent in the quarter to 802 million Euros ($1.2 billion) from 637 million Euros ($921 million) one year ago.

"We are witnessing a structural change in the IT market – customers are shifting more of their investments toward software as it continues to become a larger and more important component of the overall technology stack," said Co-CEO Jim Hagemann Snabe, in a statement.

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CFO Werner Brandt said in a statement that the company is on track to realize its goal of reaching annual sales of 20 billion Euros ($28.9 billion) by the middle of this decade.

For the six months ended June 30 SAP reported total revenue of 6.3 billion Euros ($9.1 billion) and net income of 991 million Euros ($1.4 billion).