SAP posts strong quarter; gains share
SAP said Thursday that its second quarter revenue was up 10 percent from a year ago as it gained market share. The enterprise software giant also said it is investing more into "untapped" markets in the midmarket.
By the numbers, SAP reported second quarter revenue of 2.42 billion euro and net income of 449 million euro. That sum translates to revenue of $3.45 billion and earnings of $620 million.
Software revenue was up 18 percent in the second quarter compared to a year ago.
SAP (all blogs and news) also said its market share increased to 26 percent for the four quarter period ending June 30, up from 25.1 percent from March 31. This share projection is based on SAP's definition of core enterprise applications vendors--a subset of about 25 software vendors. SAP also estimated that its midmarket market share was 32 percent.
As for the outlook, SAP said it expects software and related services revenue to increase 12 percent to 14 percent for 2007. The company also said it will invest an additional 300 million euros ($414 million) to 400 million euros ($553 million) over eight quarters to build up a new business targeting the midmarket. It invested 50 million in the first half of 2007.
By geography Europe revenue increased 12 percent with Asia Pacific gaining 20 percent from a year ago. Revenue in the Americas was up 6 percent. Europe accounts for the bulk of SAP's sales.
In addition, Bloomberg TV reported that SAP hasn't made any material financial provisions to fight or settle the Oracle lawsuit.