SAP Q4 preliminary results show jump in software revenue

But SAP's operating margin will be hit by the landmark TomorrowNow verdict

SAP on Thursday reported preliminary results for the fourth quarter and year ending Dec. 31 that showed a strong uptick in software revenue, spurred in part by its acquisition of Sybase last year.

Fourth-quarter software and software-related services revenue was roughly €3.26 billion (US$4.2 billion), rising 27 percent. Total revenue was about €4.04 billion, a 27 percent increase, SAP said.

"We are pleased to announce the best software sales quarter in the history of SAP. We achieved outstanding growth in all regions and customer segments," co-CEO Bill McDermott said in a statement.

For the full year, software and software-related services revenue jumped 19 percent to €9.78 billion, while total revenue grew 17 percent to €12.45 billion.

SAP provided no breakout of Sybase's contribution to the revenue totals.

The company had originally set aside US$160 million for costs related to Oracle's corporate-theft trial against it. In November, a jury awarded Oracle $1.3 billion.

SAP "has not yet completed its preliminary review of the appropriate re-measurement of the provision recorded for the TomorrowNow litigation following the jury verdict," it said in a statement. It expects that re-measurement to have "significant negative impact" on its fourth-quarter and full-year operating profit and operating margin.

The company is planning to deliver more details on its results, as well as its outlook for 2011, on Jan. 26.

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Tags business issuesapplicationsintellectual propertylegalCivil lawsuitsSAPfinancial resultssoftwareTomorrowNowOracle

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