SAP sees profit down in Q2 2014
Revenue up 2.2%, cloud business grows by 32%
SAP has posted financial results for Q2 2014, showing a 2.2% rise in revenues, but net profit down 23%.
The software company saw revenue rise to 4.15 billion euros ($5.6bn) in the second quarter, while net profit fell to 557 million euros ($754m) from 725 million euros a year earlier.
The company booked 289 million euros in provisions for a patent litigation with Versata Software Inc. SAP CFO Luka Mucic said in a conference call that the company may have to pay for patent infringement despite the fact that the patent was declared invalid.
Second-quarter sales of cloud-computing subscriptions and support rose 32% percent to 242 million euros, topping the average 238.4 million-euro estimate.
"We are successfully executing our shift to the cloud helping customers run simple - from total workforce management in the cloud to frictionless commerce through the world's largest business network," said Bill McDermott, CEO of SAP. "And we are redefining customer engagement with our omni-channel e-commerce platform - all of this in real time demonstrating our clear commitment to be THE Cloud Company powered by SAP HANA."