Software giant SAP’s earnings today substantial light on the global rebound for business investment.
Note that SAP is the global leader for enterprise software, which acts as the core I.T. infrastructure through which medium and large-scale companies manage their complex operations with. When large businesses expand or adapt, they generally need the services of companies such as SAP in order to do so.
Looking at today’s second quarter earnings, it turns out that software revenue in the United States grew 28% year-over-year, with was faster than that in Asia or most of the world. “We had outstanding growth in strategic markets like the U.S. and we saw continued double-digit growth in key emerging markets in Latin America and Asia,” the company said.
Looking forward, SAP expects core revenue to rise 8-9% this year, excluding additional revenue from their recent Sybase acquisition. Importantly, it also expects its operating margin to expand this year to 30-31%, from 27.4% last year.
The margin expansion is key since if you combine it with their expected revenue growth, it implies that core operating earnings could grow more than 20% year over year in 2010.
SAP is experiencing a global rebound in business investment, and expects it to continue.
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