SAP updates full-year outlook based on strong Q2

SAP says it will meet the high-end of its previously reported estimated fiscal 2011 revenue range

SAP expects its full-year operating profits will be near the top of a previously announced range, based on strong software sales in the second quarter and "improved visibility" into the remainder of the fiscal year, the vendor said Tuesday.

Non-IFRS (international financial reporting standards) operating profits for fiscal 2011 will come in at the high end of the previously estimated €4.45 billion ($US6.39 billion) to €4.65 billion range, SAP said.

Software revenue grew 35 per cent year-over-year in the second quarter ended June 30, while non-IFRS software and software related service revenue rose 20 per cent when exchange rate shifts aren't considered, the company said.

SAP originally planned to announce its second-quarter results on Wednesday, but said the release will come later Tuesday.

Enterprise software sales have been rebounding in recent quarters as the world emerges from the economic downturn and companies begin spending money on new IT projects.

Last month, SAP rival Oracle reported that new software license sales, viewed as a strong indicator of customers' confidence over IT spending, jumped 19 per cent to $3.7 billion.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

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