Despite disappointment among analysts, German software giant SAP says it is satisfied with its performance in the first quarter of this year. The firm said its cloud computing segment was particularly strong.
Business software maker SAP reported Friday that its net profit rose by 17 percent in the first three months of the year. Earnings totaled 250 million euros ($678 million).
The German company based in Walldorf - near Heidelberg - said first-quarter revenues increased by 7 percent to 167 million euros. Analysts had anticipated a lot more, but SAP said it was satisfied with its performance.
"SAP had a very good start to 2013," Co-CEO Jim Hagemann Snabe said in a statement. "Our business mix is working, and I see growth in all categories going ahead."
All eyes on the cloud
SAP noted it was able to increase cloud computing revenue by 380 percent after last year's takeover of Successfactors and Ariba.
The German company continues shifting from its longstanding business model of selling software and then profiting from follow-up services to collecting subscription fees for the usage of software on off-site servers.
The firm also said it had tripled revenue from its high-speed data analysis product HANA, which enables companies to quickly see patterns in data so they can react to them.
SAP made a point of saying it had not suffered from the European debt crisis. "Our business developed in an excellent way in the area," Snabe commented.
He conceded, though, that a trouble spot for the company was Asia, where revenue was declining and key leadership positions were still vacant.
hg/ipj (AP, Reuters, dpa)