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Microsoft Corporation Message Board

  • seafoodsnacks seafoodsnacks Jul 19, 2007 2:00 PM Flag

    Big Cap Software Companies Posting Blowout Numbers

    July 19, 2007, 8:39 am

    SAP Shares Jump On Strong Earnings and Outlook

    Posted by Eric Savitz

    Shares of German enterprise software giant SAP (SAP) are poised for a big day, following a strong second quarter earnings report. The company said total revenue in the quarter was up 10%, or 14% in constant currencies, to 2.42 billion. Operating income was up 10% year-over-year; net income was up 8%. Software revenues, a key measure, were up 18%, or 21% in constant currencies.

    The company said it took market share in the core enterprise software market in quarter for the sixth quarter in a row.

    �The second quarter was an excellent quarter for SAP with double digit growth in all regions, and we continued to gain share against core enterprise application vendors,� SAP CEO Henning Kagermann said in a statement.

    SAP repeated the full-year guidance it provided in January for software and software-related services revenue up 12%-14% at constant currencies. The company sees operating margin in the range of 26%-27%, and an effective tax rate of 32.5%-33%.

    As Marketwatch notes this morning, the results beat expectations thanks to strength in licensing revenue in Europe.

    Certainly SAP had a big quarter; combined with IBM�s strong results yesterday, indications are growing that corporate IT spending is impressively robust.

    SAP this morning is up $3.69, or 7%, at $55.64

50.54+0.06(+0.12%)Jun 29 4:00 PMEDT