By Freya Purnell
SAP AG has posted double digit revenue growth for the fifth consecutive quarter, in its financial results for the first quarter of 2011.
Software revenue for Q1 2011 was €583 million, an increase of 26 per cent on Q1 2010, while software and software-related service revenue was €2.33 billion, an increase of 20 per cent on the same period last year.
Total revenue was €3.02 billion, an increase of 21 per cent on Q1 2011.
SAP also reaffirmed its outlook for the full year 2011, predicting growth in software and software-related service revenue of between 10 and 14 per cent.
Among the company’s Q1 contract wins in the Asia Pacific/Japan region were Jiangsu King’s Luck Brewery Co, Texhong (China) Investment Co, Guangzhou Liby Enterprise Group, Astro All Asia Networks, KyungDong Navien Co, and Microelectronics Technology Inc for SAP, and YunNan Local Taxation and Jiaxing International Creative Culture Industry Park for Sybase.
A number of SAP Business ByDesign contracts were also closed during the quarter, for customers such as Hartung Consulting, KAI Computer Services Limited, Dicentra, HBC, EURO RSCG and Nowis.
SAP co-CEO Bill McDermott attributed the company’s continuing strong momentum to customers embracing its innovation and open ecosystem strategy.
“This is driving demand across our industry-leading portfolio of business applications, analytics, and enterprise mobility solutions. We delivered double-digit revenue growth in all regions, benefiting from an increasing contribution to software revenue from our partner and channel business,” McDermott said.
Fellow co-CEO Jim Hagemann Snabe also spoke of the contribution of innovation, particularly around in-memory, on-demand and mobility, to the results.
“We are innovating faster in all product areas and continue to increase operational efficiency across the country,” Hagemann Snabe said.