SAP reported Wednesday a 14% increase in revenue in the third quarter ended Sept. 30, and said its business pipeline continues to remain very strong and companies continue to invest in IT.
The business software vendor did not however revise its outlook for the full year 2011, citing the ongoing uncertain macroeconomic environment.
Total revenue in accordance with International Financial Reporting Standards (IFRS) was €3.41 billion (US$4.6 billion at the exchange rate on the last day of the quarter), while software revenue at €841 million grew by 28% from the same quarter last year. IFRS software and software-related service revenue was €2.69 billion, an increase of 16%.
SAP’s third quarter software revenue grew at its fastest rate in a decade because customers are shifting their investments to software that helps them grow and innovate, the company said.
SAP’s profits soared by 150%, in accordance with IFRS, after the company reviewed its provision for settlement of the TomorrowNow litigation with Oracle by €723 million, and reflected that sum in the operating profit.
U.S. federal judge Phyllis Hamilton reduced the damages in September from $1.3 billion, while giving Oracle the choice of accepting $272 million or seeking a new trial.
The company forecasts full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10% to 14% at constant currencies, but expects to reach the high end of the range.
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