SAP sees revenue increase by 12% in its second quarter figures, but falls short of analyst expectations, while SAP customers voice their disappointment at the software giant's SaaS rollout.
SAP suffered double disappointment this week as it failed to hit analysts' expectations with its second quarter figures, and it received a ticking off from the SAP User Group for the slow progress of its SaaS suite.
The enterprise software giant saw revenues increase by 12% to nearly E2.9 billion in the three months to 30 June, on net profits that jumped 15% to E491 million or $0.41 per share. But analysts polled by Dow Jones newswires had expected net income to be more like E525 million and sales to be around E2.75 billion.
Currency impacts in South East Asia and severance paid to former chief executive Leo Apotheker and former management board member John Schwartz were blamed for the shortfall.
Werner Brandt, SAP’s chief financial officer, said: "The top line results were driven by continued growth in software revenue, strong support revenue, mainly from the majority of our customers who endorsed Enterprise Support, and double-digit growth in subscription revenue."
