SAP reports strong second quarter growth

SAP has reported software and related service revenues of €2.3bn in preliminary financial results for the second quarter of 2010, up 16% compared with a year ago. Software revenues alone were up 17% to €637m and total revenues were up 12% to €2.9bn. Profit after tax was up 15% to €491m.

Bill McDermott, co-chief executive of SAP, said large, mid-sized and small enterprises are continuing to invest for growth across many industries

SAP also announced that it has completed the cash tender offer for all outstanding shares of common stock of Sybase. Sybase will operate as a separate company under current chief executive John Chen and remain focussed on its core database and information management business, SAP said.

In its business outlook, SAP said it expects software and software-related service revenue for 2010 to increase between 9% and 11% excluding the contribution of Sybase of six to eight percentage points.

Not a bad set of results and one indication that IT spend is on the up again after many months of crushing recessionary austerity.

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