SAP AG today reported strong financial results for its recently concluded second quarter as customers began to overcome concerns over the slowing economy and last year’s acquisition of business intelligence software provider Business Objects continued to bolster SAP’s growth.
The announcement of SAP’s strong financial performance followed yesterday’s news that rival Oracle Corp., as promised, has expanded its 16-month-old corporate theft lawsuit against SAP, charging that the company’s top executives, including Co-CEO Henning Kagermann, knew of the allegedly illegal business practices of third-party software maintenance provider TomorrowNow even before deciding to acquire the company in 2005.
SAP reported software revenue of €898 million in the second quarter ended June 30, 2008, an increase of 25% compared with the second quarter of 2007. SAP reported a 21% rise in software and software-related service revenue to €2.06 billion. Total revenue rose by 18% to €2.86 billion.
However, the company’s net income for the period fell 9% to €408 million. SAP attributed the lower earnings to higher operating and one-time expenses during the quarter. For example, SAP paid €11 million during the period to integrate Business Objects into SAP’s systems and processes. SAP also paid €24 million as part of its patent infringement suit settlement with i2 Technologies Inc. In addition, SAP wrote off €52 million worth of deferred support revenue related to the Business Objects acquisition.