SAP AG (SAP) Reports Q1 EPS of EUR0.56; Offers Outlook Update

SAP AG (NYSE: SAP) reported Q1 EPS of €0.56, versus €0.58 reported last year. Revenue for the quarter came in at €3.7 billion, versus €3.6 billion reported last year.

"We are well on our way to becoming THE cloud company powered by SAP HANA with fast growth in the cloud and broad adoption of HANA as the real-time business platform," said Bill McDermott and Jim Hagemann Snabe, Co-CEOs of SAP. "We offer our entire Business Suite in the cloud and are leading the market with the most comprehensive end-to-end HR cloud solution. And our customers can manage all workers, goods and services through the world's largest business network in the SAP cloud."

"Our 9% constant currency growth in non-IFRS software and software-related service revenue puts us ahead of our annual outlook growth range," said Werner Brandt, CFO of SAP. "We slightly increased our operating margin while accelerating our cloud business. Operating profit was up 7% on a non-IFRS constant currency basis in the quarter driving strong operating cash flow, which increased by 9% to €2.35 billion. This result brought us back to positive net liquidity in a relatively short time frame after sizable acquisitions in the past two years."

BUSINESS OUTLOOK 2014

The Company reiterates the outlook for the full-year 2014, which remains unchanged from the outlook provided on January 21, 2014:

• The Company expects full year 2014 non-IFRS cloud subscriptions and support revenue to be in a range of €950 – €1,000 million at constant currencies (2013: €757 million). The upper end of this range represents a growth rate of 32% which is similar to the respective 2013 growth rate after adjusting for acquisitions.
• The Company expects full year 2014 non-IFRS software and software-related service revenue to increase by 6% - 8% at constant currencies (2013: €14.03 billion).
• The Company expects full-year 2014 non-IFRS operating profit to be in a range of €5.8 billion – €6.0 billion at constant currencies (2013: €5.51 billion).

For earnings history and earnings-related data on SAP AG (SAP) click here.

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