Wednesday, July 20, 2016

SAP Profit Tops Estimates as Clients Move to New Software - Bloomberg

SAP Profit Tops Estimates as Clients Move to New Software - Bloomberg: "SAP SE reported results that topped analysts’ estimates as the company put a weak start to the year behind it and closed more software deals despite political turmoil in Europe. Operating profit for the second quarter was 1.52 billion euros ($1.67 billion), topping the 1.45 billion-euro average of analysts’ estimates collected by Bloomberg. Sales were 5.24 billion euros, compared with the average 5.22 billion-euro estimate. Chief Executive Officer Bill McDermott said he’s positioning SAP’s software to help companies remake sales plans and purchasing processes in light of U.K. citizens’ vote last month to leave the European Union. "Any time there’s a pressure point where things are changing, business leaders are looking for a solution," he said in an interview. New software license revenue, an important predictor of earnings potential from support contracts, rose 10 percent to 1.04 billion euros. That followed a 13 percent decline in the first quarter, which the company blamed on a failure to close deals."