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SAP bolstered by software and services growth in Q1

Simon Quicke

The joint CEOs at SAP must be patting each other on the back after the numbers for the vendor's first quarter showed growth in software and services revenues.

Bill McDermott and Hegermann Snabe, co-CEO's of SAP, put the performance down to brisk business in the SME space as well as a strong showing in emerging markets.

For the three months ended 31 March SAP saw software revenues climb 11% to €464m from €418m in the same period a year before. Service revenue climbed 12% to €1.9bn from €1.7bn.

Overall total revenue climbed 5% to €2.5bn and post tax profit climbed sharply to €387m from €196m a year earlier.

Europe lagged behind Asia Pacific in terms of growth delivering just 4% compared to 13% experienced in the emerging markets elsewhere.

In a statement, Werner Brandt, CFO of SAP, said the vendor was pleased it had returned to growth after a difficult last fiscal year and it expected to achieve "profitable growth over the long term".

The vendor stated that it expects its services revenue to continue to grow throughout the rest of 2010 at up to 8% and heralded the major company wins it had landed in Q1 including Boots UK.

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