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SAP reported high profits increase for Q4 2011

The German business software giant SAP announced better than expected financial results, which increased its share by 3.6% on the Frankfurt stock exchange yesterday. The operating profit for the fourth quarter of last year rose by 10 percent annually to 1.78 billion from analysts forecasts for 1.65 billion EUR. The operating result for the whole 2011 is increased by 18% to 4.71 billion EUR, exceeding forecasts of company earnings in the range 4.45 to 4.65 billion EUR.
"We have won significant market share and achieved double-digit growth in all regions", said the CEO Bill McDermott and Jim Hageman supplier in cited by the WSJ. The sales of licenses - a key measure for software manufacturers - rose 16% last quarter year on year to 1.74 billion EUR with a forecast of analysts from 1.63 billion EUR for the entire growth in 2011 is forecast at 15% of SAP within 10-14%. The strong results come amid concerns that the technology company will feel the effects of depressed spending on technology in Europe because of the financial crisis on the continent. The main rival Oracle, which has a diversified business, announced last month, only 2% increase in revenue from sales of software licenses for the three months ending November 2011.