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January 15, 2013

Software Maker SAP's Q4 Sales Climb 12 Percent

By Erin Harrison, Executive Editor, Cloud Computing

Attributing positive fourth quarter results due to strong results from Asia, business software provider SAP (News - Alert) AG said sales increased 12 percent in a preliminary earnings report released this week.

SAP makes software aimed to help companies manage back-office functions such as personnel and paying suppliers.

Revenue rose to $6.7 billion from approximately $6 billion in the same quarter a year earlier. Software revenue rose 22 percent in the Asia-Pacific-Japan (APJ) region, but only 8 percent in Europe, the Middle East and Africa.

Last fall, SAP closed its $4.51 billion acquisition of Ariba Inc., a maker of Web-based software that connects suppliers and buyers online. Company officials said SAP’s strong cloud momentum continued in the fourth quarter: in fact new and upsell subscription billings for SAP cloud applications increased nineteenfold in the past year.

Overall, the Walldorf, Germany-based company had a record-setting year and plans to continue that momentum in 2013, according to SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe.

“We continued our double-digit growth momentum and exceeded our revenue guidance. We achieved a breakthrough in the cloud and today SAP is the second largest cloud player in the world. And we overachieved on our SAP HANA revenue ambition, making SAP the fastest growing next generation database company in the market,” McDermott and Snabe said in a joint statement. “With our inspired people and our customer-centric innovation strategy we are perfectly positioned to continue our growth momentum in 2013. With SAP Business Suite on HANA we are redefining the software industry and opening up a new world of growth opportunities for our customers.”

Company officials said operating earnings fell 5 percent to $1.3 billion.

“That result was diminished by expenses of €151 million related to acquisitions and by €185 million from new, share-based compensation programs boosted by a rise in the company’s stock price during the year,” the AP reported.

SAP plans to release detailed earnings including net profit and its outlook for 2013 on Jan. 23.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Braden Becker

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