SAP posts better-than-expected net profit

SAP, the German professional software giant, posted a better than expected second quarter profit on Wednesday, and said it would maintain tight cost controls for the remainder of the year.

SAP said net profit rose by 3.7 percent from the same period a year earlier to 423 million euros (600 million dollars), exceeding an average analyst forecast compiled by Dow Jones Newswires of 385 million euros.

Software revenues, a benchmark of core operations, fell however by 40 percent to 543 million euros, a company statement said.

"Despite the challenging economic conditions, the strength of our business model combined with a strong cost discipline has proven itself once again by enabling us to report another quarter of strong operating margin growth," finance director Werner Brandt was quoted as saying.

"For the remainder of the year, we expect to maintain tight cost controls in all areas of the company."

SAP chief executive Leo Apotheker added: "While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year."

(c) 2009 AFP