SAP’s (SAP) revenue and earnings were both up more than expected. Revenue hit 2.42 billion euros, a 10% increase and net income rose 8% to 449 million euros.
Software sales in Asia rose 24%, the strongest showing for any region.
SAP’s shares were up 5% in Europe trading.
The results raise the question of whether SAP is taking business from its largest competitor Oracle (ORCL) or whether IT spending is actually moving up fairly sharply.
SAP’s management wants the market to believe that its is gaining market share: "The second quarter was an excellent quarter for SAP with double digit growth in all regions, and we continued to gain share against core enterprise application vendors," said Henning Kagermann, CEO of SAP AG. But, the posturing between the two companies has been going on for some time.
Based on recent data on server and enterprise PC sales, it would not be surprising to see a rebound in IT spending. In which case, things should be going well for Oracle.
Douglas A. McIntyre
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