SAP reports profits slump in Q2
German software giant SAP said on Thursday its bottom line was hit by one-off effects in the second quarter, but it is sticking to its full-year forecast.business Updated: Jul 17, 2014 13:08 IST
German software giant SAP said on Thursday its bottom line was hit by one-off effects in the second quarter, but it is sticking to its full-year forecast.
SAP said in a statement that its net profit fell by 23% to 556 million euros ($752 million) in the period from April to June.
Underlying or operating profit was down 29% at 698 million euros, despite a 2.0-% increase in second-quarter revenues to 4.151 billion euros.
SAP said profits had been hit by a provision of 289 million euros related to a long-running patent dispute with the US company Versata.
"Recent developments in the courts have made it probable that SAP will be required to pay Versata," SAP explained.
Looking ahead to the whole year, SAP said it continued to project operating profit to be in a range of 5.8-6.0 billion euros, up from 5.48 billion euros in 2013.
First Published: Jul 17, 2014 13:07 IST