SAP’s third quarter 2011 software revenue grew at its fastest rate in a decade.
IFRS software revenue was €841 million, up 28 per cent on 2010, while software and software-related service revenue was €2.69 billion, an increase of 16 per cent.
IFRS operating profit was up a staggering 146 per cent, from €716 million in 2010 to €1.76 billion.
“Continued efficiency gains combined with operational excellence led to a very strong operating margin performance,” said SAP CFO Werner Brandt. “Our momentum puts us on pace to achieve a record cash flow year.”
As a result of strong cash flow generation in the first nine months of 2011, with free cash flow of €2.64 billion , SAP plans to evaluate buying back shares.
The company also indicated that its full-year outlook for 2011 remains unchanged from figures previously announced in July, but expects revenues to increase at the high end of the 10-14 per cent range.
“Our strong performance and market share gains clearly show that our customer focused innovation strategy is winning,” said SAP co-CEO, Jim Hagemann Snabe. “Delivering innovations in non-disruptive steps reduces the costs for our customers so they can invest in our breakthrough technologies to speed up decisions, strengthen customer relationships and drive growth.”
