SAP revenue down 10 per cent, but profit up

Business software slump hits SAP, but cost control helps

SAP's cost control measures helped to boost profits

Business software vendor SAP released financial results for its second quarter today showing a 10 per cent drop in revenue year-on-year, to $2.58bn (£1.58bn) from 2008's $2.86bn (£1.75bn).

But efforts to contain costs meant SAP's net income of $423m (£258m) showed an increase of four per cent from last year's $408m (£249m).

SAP chief financial officer Werner Brandt said company is dealing with the challenging economic conditions.

"Strong cost discipline has proven itself once again, enabling us to report another quarter of strong operating margin growth," he said.

SAP chief executive Léo Apotheker said: “While the operating environment remains difficult, we are beginning to have improved visibility into the second half of the year.”

Although software sales crashed 40 per cent in the quarter, the figures were bolstered by a 20 per cent increase in support revenue.

SAP's chief rival in business software, Oracle, recorded a seven per cent net income drop, and a five per cent revenue drop in its recent fourth quarter financial results.

Software giant Microsoft recently reported a revenue fall of 17 per cent, with profit down nearly a third.