SAP 1Q09: Strong margin, despite revenue decrease

SAP first quarter 2009 shows a strong margin at 13.9%, with 3% less total revenue.


SAP quotable

Customers need clarity in their businesses and solutions that provide a fast return on investment.

Walldorf, Germany – SAP AG says its first quarter 2009 preliminary financial results showed a strong margin of 13.9% due to cost controls. Margin for 1Q08 was 14.6%. Also in first quarter, total revenue (including services) decreased 3%, and software revenue decreased 33%, compared to first-quarter 2008 results. Net income fell 16%, and earnings per share from continuing operations dropped 14%. The company made the announcement April 29. SAP comments follow with a link to more information.
“While visibility for software revenues remains limited , we continue to take the necessary steps to protect our margin in this tough operating environment,” said Leo Apotheker, co-CEO of SAP. “The cost containment measures that we initiated in October of last year and carried into the first quarter of 2009 have really taken hold, and we are pleased with the resulting margin performance. We will continue to maintain tight cost controls. Our ability to deliver good margin performance in this environment, especially when you consider the restructuring charges related to the reduction of positions, is due to the strength, flexibility and scalability of our business model.”
Apotheker continued, “Customers now more than ever need clarity in their businesses, but they also need solutions that are quick to implement and provide a fast return on investment. We are providing customers with both with solutions from SAP BusinessObjects to our new SAP Business Suite 7, which gives customers the ability to quickly address critical pain points with pre-configured industry best practices in a modern and open architecture.”
Remaining positive in the difficult environment , Apotheker said SAP has “maintained our market leadership because we have the industry’s broadest and deepest product portfolio for large, midsized and small companies, and we have the ability to continue to innovate. SAP is a strong company with a robust business model, a highly skilled workforce and a great customer base. We expect to exit this recession even stronger, just like we did after the downturn earlier in the decade.”
SAP provides details on first quarter 2009 results , including numbers, events, contracts, product introductions, and cost containment measures.
From MBT read about SAP SCM 4.0 By SAP For Supply Chain Optimization and

Intelligent partnership: SAP and Teradata create comprehensive BI solution

-edited by Mark T. Hoske, Reed Business Information,

No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Make Big Data and Industrial Internet of Things work for you, 2017 Engineers' Choice Finalists, Avoid control design pitfalls, Managing IIoT processes
Engineering Leaders Under 40; System integration improving packaging operation; Process sensing; PID velocity; Cybersecurity and functional safety
Mobile HMI; PID tuning tips; Mechatronics; Intelligent project management; Cybersecurity in Russia; Engineering education; Road to IANA
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
click me