SAP net income falls 12% in Q4

09:56, January 28, 2010      

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German software company SAP AG reported yesterday that fourth quarter net income fell 12 percent to 727 million euros ($1 billion) due to difficult market conditions amid the downturn, but added it expects an improvement this year.

SAP, based in Walldorf, reported net income of 830 million euros in the October-December period of 2008. Revenue fell 9 percent to 3.2 billion euros from 3.5 billion euros a year earlier.

Germany's biggest software company said it expects 2010 software and software services revenue to increase between 4 percent and 8 percent from 8.2 billion euros in 2009. While the company expects its operating margin to improve to around 30 percent from 27.4 percent, it also expects its 2010 tax rate to go up to around 28 percent from 26.7 percent in 2009.

"As a result of a very difficult and unstable market environment that began in the third quarter of 2008 and then continued into 2009, we rapidly put into place a plan to reduce operating expenses in order to protect our operating margin. I am pleased to report thats we exceeded our initial expectations," said Werner Brandt, SAP's chief financial officer, in the company's report.

Shares of SAP were about a half of a percent lower at 32.55 euros in Frankfurt morning trading, while the broader DAX market was down 1.2 percent.

SAP said its full-year 2009 net income fell 4 percent to 1.79 billion euros from 1.87 billion euros in 2008, while 2009 revenue fell 8 percent to 10.7 billion euros from 11.6 billion euros in 2008.

Source: China Daily
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