SAP ups revenue outlook on Ariba acquisition
MUNICH (Reuters) - Germany's SAP (SAPG.DE) raised its 2012 software revenue outlook to reflect the acquisition of internet-based cloud computing company Ariba, completed earlier this month.
The world's biggest maker of business software said on Wednesday it sees full-year revenue from software and software-related services growing by between 10.5 and 12.5 percent.
In July, when it was waiting for approval of its $4.3 billion acquisition of Ariba, SAP had said 2012 revenue would rise 10-12 percent.
"Assuming that the macroeconomic environment does not deteriorate we expect to reach the upper end of the range," SAP's co-chief executive Jim Hagemann Snabe told reporters.
SAP's third-quarter operating profit before special items rose 10 percent to 1.24 billion euros ($1.61 billion), while software and software-related services revenue rose 19 percent from last year to 3.19 billion euros. Both figures were in line with average analyst estimates.
SAP, which competes with Oracle ORCL.O and IBM (IBM.N), said it still expected 2012 operating profit to rise to between 5.05 billion euros and 5.25 billion at constant currencies.
Third-quarter net profit was hit by a 64 million euro provision for a wrong-way euro-dollar bet related to the Ariba acquisition. As a result, net profit of 618 million euros missed the most pessimistic expectation in a Reuters poll of 668 million.
"At the time when we announced the Ariba acquisition we thought it was prudent to hedge our position for a weaker euro, however the euro strengthened instead," SAP finance chief Werner Brandt said.
SAP's integrated software systems are sold to many of the world's biggest companies, such as Apple (AAPL.O), GE (GE.N), McDonald's (MCD.N) and Pepsi (PEP.N).
($1 = 0.7714 euros)
(Reporting by Harro ten Wolde; Editing by Maria Sheahan)
- Housing, jobs data weaken, but overall economic picture still upbeat
- Putin critic Khodorkovsky in Germany after pardon
- Investigators look overseas for hackers in Target case: source
- Pizza outlet attacked as India, U.S. fail to cool diplomat row |
- New York Mayor-elect's reputation for lateness parodied on Twitter