German software giant SAP defies crisis

Record sales of software and licenses have helped German software maker SAP increase earnings by 12 percent in the second quarter of 2012. Strong growth overseas has boosted expectations for the whole year. SAP's net profits had risen to 661 million euros ($800 million) from 588 million euros in the same period a year ago, the German software giant said Tuesday. The company, which produces back-office business software, also saw revenues jump 18 percent to 3.898 billion euros in the second quarter of 2012. Software revenues in the period from April through June were up 26 percent at 1.059 billion euros, while support revenues grew by 15 percent to 2.014 billion euros. In addition, earnings were further boosted by growth in SAP's cloud computing software, as well as by higher sales of its HANA software, made for data processing and analyzing. Despite the eurozone debt crisis, SAP reported 22 percent bigger sales of its software in Germany and other European Union countries. Demand for SAP products grew even faster in the Americas, as well as in Asian markets. "Improved business in the first half of 2012 and our strong focus on operating efficiency are paving the way towards reaching our goals for the whole year," said SAP Chief Financial Officer Werner Brandt. By the end of 2012, SAP plans to increase software and support sales by 10 to 12 percent, aiming to surpass the 11.35 billion euros it earned last year.