TomorrowNow litigation drags SAP Q4 profits down

The company says it is "confident in 2011 and beyond"

SAP saw revenue rise 27 percent in the fourth quarter but profits dropped by more than a third due to increased provisions linked to litigation with Oracle related to its former TomorrowNow unit, the company said Wednesday.

Oracle sued and won US$1.3 billion in damages in a corporate theft lawsuit against TomorrowNow which downloaded software and support materials illegally from an Oracle website.

On Wednesday, SAP said it intends to fight the damages and laid out a course of action.

"SAP has great respect for the US legal system and Court decisions. However, SAP believes that the amount awarded by the jury in Oracle v. SAP/TomorrowNow is disproportionate and wrong," the company said.

"After the Court has entered final judgment SAP intends to file post-trial motions in the coming weeks asking the Court to reduce the amount of damages awarded, or to order a new trial," it said.

It warned the amount by which the jury award would be reduced, if any, cannot be predicted, so legal provisions assumed in Wednesday's earnings statement could change.

Revenue in quarter ended Dec. 31 was €4 billion (US$5.3 billion at the exchange rate on the last day of the quarter), while net profit was €437 million. The results are calculated to international financial reporting standards and include the operations of Sybase after it was acquired by SAP on July 26 last year.

SAP expressed confidence for the coming year and said it performed extremely well in all key customer segments, and showed solid revenue worldwide, particularly in fast-growing emerging markets.

Software revenue in the fourth quarter was €1.51 billion, an increase of 35 percent over the same quarter in the previous year. Software and software-related service revenue was €3.27 billion, an increase of 28 percent.

Software revenue grew for the full year to €3.27 billion up by 25 percent, while software and software-related service revenue was €9.8 billion, an increase of 19 percent over the previous year. Full year revenue at €12.5 billion was up by 17 percent over the previous year, while net profit was €1.8 billion, up 4 percent.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesCustomer Relationship ManagementapplicationsBusiness Process Managemententerprise resource planningSAPsoftwarefinancial resultsData managementOraclebusiness intelligence

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?