SAP Announces Q2 Results

SAP announces a Q2 Net Income of €423m, up from €408m in Q2/2008. 

Financial Highlights:

• Software sales drop 40 per cent year-over-year, from €898m to €543m
• Software maintenance revenues increase 22 per cent  year-over-year
• 2,800 jobs cut so far in 2009
• Raises forecast for 2009 EBIT from 25.5 per cent and 27 per cent, previously 25.5 per cent was the high range. 
• Issued a €660m promissory note, or "Schuldschein" as its known in Germany
• Increase in NI chalked up to cost savings, site reduced restructuring costs
  • Restructuring costs for 2009 expected to hit the low end of the €200m-€500m estimate
  • “For the remainder of the year we expect to maintain tight cost controls,” -Werner Brandt, chief financial officer

Business Highlights

• Announced details of it's on-demand software for large enterprises, where "function-specific software applications" will plug in to customer's on-site systems
• Made available worldwide their Business Suite 7, their next-generation software suite enabled by service-oriented architecture (SOA).
• Announced SAP BusinessObjects Explorer, "enabling customers to navigate mountains of business data at the speed of thought and giving them a clear view across their organizations"
• Introduced additional customers for SAP Business ByDesign, SAP’s fully integrated, on-demand business solution that "enables midsize companies from various industries to improve transparency and business operations, and support international growth, while helping to reduce IT costs"
• Acquisitions:
  • Highdeal-real-time billing solutions for telecommunications
  • Clear Standards Inc.-enterprise carbon management solutions

• Closed contracts:
  
  • Federal Interior Ministry of Rheinland-Pfalz, Germany,
  • Group Danone,Shoosmiths, and Statoil ASA in EMEA;
  • Baker Hughes, Boston University, and Confederação SICREDI in Americas;
  • China Export & Credit Insurance Company, Commonwealth Bank of Australia, Ministry of Finance, Singapore, and Tata Teleservices Ltd in Asia Pacific Japan.

Shares of SAP traded up 3.94% from yesterdays close of $44.88 on the NYSE.