SAP Earnings Reveals Elevated Competition with Oracle
SAP AG (NYSE:SAP), the largest maker of business-management software, reported fourth-quarter earnings that beat analysts’ estimates. It aims to boost annual revenue to more than 20 billion euros by 2015 with the help of cloud-computing software, mobile applications and its Hana real-time analytics technology. Co-Chief Executive Officers Bill McDermott and Jim Hagemann Snabe stepped up their rivalry with Oracle Corp. (NASDAQ:ORCL) by bolstering the company’s cloud arsenal last month in a $3.4 billion acquisition of SuccessFactors Inc. SAP plans to give detailed earnings and 2012 outlook on January 25.
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Walldorf, Germany-based SAP (NYSE:SAP) said in a statement today that the operating profit was 1.78 billion euros ($2.3 billion) under accounting standards the company uses for its own forecasts, which compared with the 1.73 billion-euro average estimate in a Bloomberg survey of analysts. Revenue from software and software-related services went up 13 percent climbing to 3.72 billion euros at constant currencies, which also top estimates.
“Oracle fell the most in more than nine years on December 21 after the Redwood-City, California-based Company reported profit and sales that missed estimates. Slower economic growth in the United States and the risk of a recession across the euro zone is making governments and businesses more wary of spending,” according to Bloomberg.
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