SAP net income falls 12% in Q4

FRANKFURT: German software company SAP AG reported yesterday that fourth quarter net income fell 12 percent to 727 million euros ($1 billion) due to difficult market conditions amid the downturn, but added it expects an improvement this year.

SAP, based in Walldorf, reported net income of 830 million euros in the October-December period of 2008. Revenue fell 9 percent to 3.2 billion euros from 3.5 billion euros a year earlier.

Germany's biggest software company said it expects 2010 software and software services revenue to increase between 4 percent and 8 percent from 8.2 billion euros in 2009. While the company expects its operating margin to improve to around 30 percent from 27.4 percent, it also expects its 2010 tax rate to go up to around 28 percent from 26.7 percent in 2009.