German maker of ERP software SAP claims it had a record fourth quarter. Software revenues increased 35 percent year over year, from $1.53 billion (€1.12 billion) to $2.06 billion dollars (€1.507 billion). Revenue from services rose from $3.5 billion(€2.56 billion) to $4.48 billion (€3.27 billion), an improvement of 28 percent. All in all, the company posted a total revenue of $5.56 billion (€4.058 billion), 27 percent more than in the same period of 2009.
The company’s net profit however took a hit, dwindling 36 percent from $935 million (€682 million) to $599 million (€437 million) as SAP had to increase its provision for the Oracle litigation to $1.27 billion (€933 million).
SAP stated it believes the sum awarded to Oracle is far too much. It will start filing post-trial motions in order to decrease the sum, or beg for a new trial in order to save Larry Ellison from having to buy new golden coffers and treasure troves.
For the full year 2010, total revenue bounced up 17 percent from $14.62 billion (€10.672 billion ) to $17.08 billion (€12.464 billion). Software revenue grew 25 percent and was $4.46 billion (€3.265 billion), whereas services climbed from $11.22 billion (€8.198 billon) to $13.42 billion (€9.79 billion). SAP managed to make a net profit of $2.48 billion (€1.816 billion), four percent more than in 2009 when the company earnt its shareholders $2.39 billion (€1.75 billion).
SAP foresees its software and services revenue to increase 10 to 14 percent during 2011, whereas its operating profit will be between $6.1 and $6.32 billion (€4.45 and €4.65 billion), sans stock based compensation, restructuring costs, write-downs and other stuff not included in its non-IFRS prophecies.