SAP Guidance Lifts Shares
German business-software giant SAP AG Tuesday reported a 20 percent jump in second-quarter profit and said it plans to reach the top end of its revenue and profit guidance in 2011 amid strong demand.
SAP said that its closely watched software and software-related service revenue, which includes new licenses and maintenance, is now expected to be at the upper end of its forecast for growth of between 10% and 14% this year. It anticipates that to translate into increased profits and expects its operating profit to be at the top end of its €4.45 billion to €4.65 billion ($6.46 billion to $6.75 billion) guidance range.
