Germany's SAP Sees Surging 3Q Profits on Record Software Sales

By Matt Egan Markets FOXBusiness

Fueled by record growth in software revenue, business software giant SAP (SAP) more than doubled its third-quarter operating profits and reaffirmed the higher end of its 2011 guidance.

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The news sent U.S.-listed shares of the Walldorf, Germany-based company rallying more than 2% ahead of Friday’s opening bell.

SAP, which is the world’s largest maker of business software, said it earned 1.76 billion euros ($2.42 billion) last quarter, up from just 716 million euros a year earlier.

The company said software and software-related services sales leaped 16% to 2.69 billion euros. Total sales jumped 14% to 3.41 billion euros, topping forecasts from analysts of 3.32 billion euros.

“The record quarter was driven by strong results across all regions,” co-CEOs Bill McDermott and Jim Hagemann Snabe said in a statement. “Innovative software matters more than ever and we are at the forefront of this trend.”

Looking ahead, SAP said it still sees full-year non-IFRS software and software-related service revenue growth of 10% to 14%, but now anticipates it to be at the high end of that range.

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On the heels of the upbeat results, shares of SAP jumped 2.19% to $57.39 ahead of Friday’s opening bell. Rival Oracle (ORCL) rallied 1.32% to $31.55 and Microsoft (MSFT) gained 0.74% to $27.38.

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