SAP AG (SAP) reported total revenue of €2.58 billion, a decline of 10% year over year, for the second quarter of 2009. US GAAP basic earnings per share from continuing operations rose 6% to 36 pence. Software revenue fell 40% year over year due to difficult operating environment worldwide.
SAP closed major contracts in several key regions during the period, including Federal Interior Ministry of Rheinland-Pfalz, Germany, Group Danone, Shoosmiths and Statoil ASA in EMEA, Baker Hughes, Boston University and Confederação SICREDI in the Americas and China Export & Credit Insurance Co., Commonwealth Bank of Australia, Ministry of Finance, Singapore and Tata Teleservices Ltd in Asia Pacific Japan.
Quarterly operating income was €431 million, up 5% year over year, with a margin of 25.1%, an increase of 4.4 percentage points.
Operating cash flow from continuing operations was €1.83 billion, an increase of 34% year over year. Free cash flow was €1.73 billion, an increase of 44%. Free cash flow was 35% of total revenue. As of June 30, SAP had total group liquidity of €3.44 billion, including cash and cash equivalents, restricted cash and short term investments.
The company expects to record total restructuring charges of €200 million in 2009. It had already recorded €165 million in restructuring charges for reducing 2,800 positions as part of operating income in the first half of the year.
Headquartered in Walldorf, Germany, SAP is one of the largest independent software vendors in the world and a leading provider of enterprise resource planning (ERP) software. Its solutions are designed to cater to the needs of organizations, ranging from small and medium businesses to large, global enterprises.
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