By Chris Bryant in Frankfurt
SAP, the world?s biggest business software maker by sales, remains bullish on the outlook for corporate IT spending, saying it aims to again achieve double-digit growth in 2012.
Announcing full-year results that exceeded analysts expectations on Wednesday, the German firm said it expects software and software-related services revenue to increase by 10-12 per cent in 2012.
Operating profit is expected to increase from 4.7bn euros to between 5.05bn euros and 5.25bn euros, or as much as 11.5 per cent.
The figures are at constant currencies and are not based on international financial reporting standards.
Oracle, SAP?s biggest rival, sent shivers through the technology sector last month when it reported an unexpected slowdown in sales growth and earnings that fell short of forecasts.
But IBM and Intel were among tech companies that last week reported solid margins, raising hopes that the sector can withstand a sluggish economy.
SAP expects its range of new products in mobile, cloud computing and so-called ?in memory computing? will help drive further sales growth this year. SAP?s HANA ?in memory? tools allows user to rapidly analyse vast quantities of data.
Last year, the company targeted an increase of 10 to 14 per cent in software and software-related services revenue, a target that it exceeded by 3 percentage points. SAP is targeting 20bn euros in revenues by 2015, a goal which management believe the company is ?well positioned to exceed?.
Total revenues in 2011 increased by 15 per cent to 14.3bn euros, while software revenues – a key barometer of future service and support-related earnings – jumped by 25 per cent to a record 4bn euros.
Sales of HANA and in mobile last year reached 270m euros, exceeding analysts expectations.
The company in December agreed to buy Success Factors, a provider of cloud-based human resource management software, for $3.4bn. The acquisition accounts for around up to 2 percentage points of SAP?s projected revenue increase in 2012.
?In an uncertain environment, we had the best year in our 40-year history and clearly outperformed the competition,? Bill McDermott and Jim Hagemann Snabe, co-chief executives, said in a statement. ?We have significant momentum going into 2012.?
SAP?s shares have increased by around 9 per cent over the past year, outperforming most German blue-chip stocks. The stock slipped by 0.7 per cent to 44.10 euros in early Wednesday trading.
Full year net profit increased by 23 per cent to 3.4bn euros while earnings per share rose from 2.30 euros to 2.83 euros. Free cash flow soared by 29 per cent to 3.3bn euros. The group had 5.6bn euros in group liquidity – including cash and cash equivalents and short term investments – at the end of last year.
? The Financial Times Limited 2012