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Jan. 27, 2010, 8:47 a.m. EST

SAP Sees Return to Growth

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By Archibald Preuschat

FRANKFURT—Business-software company SAP /zigman2/quotes/203458330/delayed DE:SAP -1.64% AG said Wednesday it expects to return to growth in 2010, after a year of decline, including a 13% fall in fourth-quarter net profit.

The Walldorf, Germany-based company forecast a 4% to 8% rise in its software and software-related service revenue—a closely watched indicator—from the €8.2 billion posted in 2009.

SAP, which competes with Microsoft /zigman2/quotes/207732364/composite MSFT +2.28% Corp. and Oracle /zigman2/quotes/202180826/composite ORCL +0.84% Corp., also wants to improve its operating margin to a range between 30% and 31% from 27.4% in 2009.

"Along with margin expansion for 2010, we are also ready to return to top-line growth, although the market continues to be challenging, and uncertainty among customers still exists," said Chief Executive Leo Apotheker .

SAP was hard hit by the economic downturn, as many of its customers scaled down investment in information technology.

Net profit in the three months to Dec. 31 fell to €726 million from €830 million a year earlier. Revenue, as reported earlier this month, eased 9% to €3.19 billion from €3.49 billion, as software revenue declined 15% to €1.12 billion from €1.32 billion. Software and software-related service revenue fell around 4% to €2.57 billion from €2.67 billion.

SAP changed its accounting rules from U.S. generally accepted accounting principles to international financial reporting standards in 2010, and guides on a non-IFRS basis on constant currencies.

Write to Archibald Preuschat at archibald.preuschat@dowjones.com

/zigman2/quotes/203458330/delayed
DE : Germany: Frankfurt
129.68
-2.16 -1.64%
Volume: 3,786
Sept. 25, 2020 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€256,047
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/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 207.82
+4.63 +2.28%
Volume: 29.44M
Sept. 25, 2020 4:00p
P/E Ratio
36.08
Dividend Yield
1.08%
Market Cap
$1537.67 billion
Rev. per Employee
$902,473
loading...
/zigman2/quotes/202180826/composite
US : U.S.: NYSE
$ 59.80
+0.50 +0.84%
Volume: 9.37M
Sept. 25, 2020 4:02p
P/E Ratio
18.75
Dividend Yield
1.61%
Market Cap
$178.55 billion
Rev. per Employee
$289,197
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