German software powerhouse SAP said today its sales rose by 12 percent in the fourth quarter, thanks to stronger than expected results from Asia.
The firm said its non-IFRS revenues grew to €5.06 billion ($6.8bn) over the three-month period through December from €4.50 billion ($6bn) in the same quarter a year ago. The firm's software revenue rose by 22 percent in the Japan and Asia-Pacific region, but by just 8 percent in Europe, the Middle East and Africa.
Non-IFRS operating profit dipped by 10 percent to €1.96 billion ($2.62), although the software maker said it was less profitable than it was during the same quarter a year ago.
Operating earnings fell by 5 percent to €1.59 billion ($2.12bn), which was lowered by acquisition expenses of €151 million ($201.3m). It was also diminished by an additional €185 million from a new share-based compensation program, which was given a boost by a rise in the firm's share price earlier in the year.
SAP co-chief executives Bill McDermott and Jim Hagemann Snabe said in prepared remarks:
2012 was an outstanding year where we set many new records. We continued our double-digit growth momentum and exceeded our revenue guidance. We achieved a breakthrough in the cloud and today SAP is the second largest cloud player in the world. And we overachieved on our SAP HANA revenue ambition, making SAP the fastest growing next generation database company in the market.
Shares in SAP fell by more than 5 percent in pre-market trading. Update at 9:45 a.m. ET: The company began its bounce back but is still pegging in 4 percent down in early morning trading.
SAP will publish its full financial results for the fourth quarter on January 23.