SAP CFO sees no out-of-court settlement with Oracle

FRANKFURT (Reuters) - The chief financial officer of business software maker SAP (SAPG.DE) does not believe an out of court settlement with Oracle (ORCL.O) is likely at present, he told German Sunday weekly Euro am Sonntag.

"That is a possibility that we never ruled out, but for the moment it is not an issue. There are no talks over and above the regular court proceedings," Werner Brandt said.

Oracle had filed a lawsuit against SAP in March 2007, accusing it of corporate theft and copyright infringement.

The two are bitter rivals in the battle to supply customers with software to automate, integrate and manage everything from human resources to accounting.

When asked about the company's outlook, Brandt said he continues to expect an adjusted operating margin of 35 percent in the mid-term.

"I see no reason why we cannot generate 100 basis points of additional margin annually in the coming years, and even slightly more if business is good," he said.

For 2008, SAP expects its non-GAAP operating margin at constant currencies, which excludes a non-recurring deferred support revenue writedown from the acquisition of Business Objects and acquisition-related charges, to be in the range of between 28.5 and 29.0 percent.

Brandt also forecast organic growth in software and other software-related service revenue, which doesn't include maintenance sales, would be a clear two-digit percentage figure on average in the coming years.

By comparison, the company has said this would rise by 12-14 percent in 2008, when the contribution from the acquisition of Business Objects is stripped out.

(Reporting by Christiaan Hetzner; editing by Elaine Hardcastle)