German business software maker SAP AG (SAP: Quote) on Wednesday reported a 10 percent increase in profit for the first quarter, and reiterated its full year outlook.
"We see strong momentum for our flagship in-memory platform SAP HANA, our cloud and mobile solutions, and our core applications and analytics products," said Bill McDermott and Jim Hagemann Snabe, Co-CEOs, SAP.
On the basis of International Financial Reporting Standards, SAP's profit attributable to owners of parent increased to 444 million euros ($587 million) or 0.37 euros per share from 403 million euros or 0.34 euros per share in the year-ago quarter.
Non-IFRS profit attributable to owners of parent rose to 583 million euros from 528 million euros in the prior year.
Total IFRS revenue for the three-month period improved to 3.35 billion euros from 3.02 billion euros in the previous year.
Software and software-related service revenue increased 13 percent to 2.62 billion euros with a 14 percent growth in Support revenue. Software revenue advanced 4 percent.
Cloud subscriptions and support revenues surged to 29 million euros from 4 million euros.
Non-IFRS revenue climbed to 3.36 billion euros from 3.04 billion euros in the prior year. Software and Software-related service revenue advanced 12 percent to 2.63 billion euros.
Werner Brandt, CFO of SAP, said, "We reported our ninth consecutive quarter of double-digit growth in non-IFRS software and software-related service revenue, with a strong contribution from SuccessFactors to our cloud business."
Looking ahead to the second quarter, SAP expects software revenue to increase in a range of 15 percent to 20 percent at constant currencies, compared to 838 million euros generated last year. The company also expects non-IFRS software and software-related service revenue to increase in a range of 14 percent to 16 percent at constant currencies from last year's 2.59 billion euros.
Further, SAP reiterated its forecast for the year. The company expects full-year non-IFRS software and software-related service revenue to increase in a range of 10 percent to 12 percent at constant currencies. Also, the company expects non-IFRS operating profit to be in a range of 5.05 billion euros to 5.25 billion euros at constant currencies.
SAP is currently falling 0.47 percent at 49.06 euros on a volume of 1.52 million shares.
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by RTT Staff Writer
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