iPhone 14 Pro vs. Galaxy S22 Ultra HP Pavilion Plus Planet Crossword Pixel Watch Apple Watch Ultra AirPods Pro 2 iPhone 14 Pro Camera Best Android Phones
Want CNET to notify you of price drops and the latest stories?
No, thank you

SAP earnings beat estimates

Sales in Europe were especially strong, rising 24 percent, the software maker says.

Business software giant SAP on Thursday reported better-than-expected third-quarter earnings, driven largely by increased sales worldwide.

The company said that net income for the quarter, which ended Sept. 30, reached $366 million, or roughly 94 cents per share. Those results represent a 15 percent increase over the same period last year, when the company had profits of $317 million, or 81 cents per share. The results also easily bested analysts' average earnings expectations of 92 cents per share, according to a poll by Thomson First Call.

The Walldorf, Germany-based company, which specializes in tools that help businesses with enterprise resource planning (ERP) and customer relationship management (CRM), said its revenue grew to $2.23 billion for the quarter, an 8 percent increase compared with the third quarter of 2003. SAP reported that its third-quarter software sales were powered by higher demand worldwide, and it reiterated that it expects a 10 percent gain in sales for the year.

SAP reported that its European sales rose 24 percent compared with the third quarter of last year, bolstering hopes for a rebound in the market. The company said that its Asia-Pacific sales grew by 23 percent during the period, while sales in the Americas fell by 2 percent, despite strong demand in the United States, where sales increased by 6 percent.

"Each of the three regions reported year-over-year growth, resulting in a more balanced performance than we have previously seen this year," Henning Kagermann, SAP's chief executive, said in a statement, referring to Europe, Asia-Pacific and the United States.

SAP's positive earnings report follows similar news from rival Siebel, which announced third-quarter results Wednesday.

Siebel reported a quarterly net profit of $19.4 million, or 4 cents per share. That compares with a net loss of $59.3 million, or 12 cents per share, a year earlier, when the enterprise software maker was weighed down by restructuring charges. Siebel announced quarterly revenue of $317 million, down from the $321.4 million it reported for the third quarter of 2003.