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SAP SURGES IN SECOND QUARTER Featured

Bill McDermott, SAPSAP was hitting on all software cylinders for the second quarter ended June 30. "We delivered a Trifecta of double-digit software, cloud and operating income growth," CEO Bill McDermott said during this week's earning's webcast. Well, that is in non-IFRS terms. On an IFRS, basis, it was a strong quarter, just not so over-the top.

Revenue of roughly $5.8 billion rose 5 percent over last year's corresponding period. McDermott didn't mention net profit, but at approximately $895 million that result was about 81 percent higher than last year. On an IFRS basis, cloud and software revenue fro was roughly $4.8 billion, up 7 percent from a year ago. SAP's return to revenue growth in software licenses strengthened, with software licenses and support revenue rising 4 percent to slightly more than $4 billion. Cloud subscriptions and support hit about $793 million, up 30 percent on an IFRS basis and up 31 percent non-IFRS. McDermott's voice rises in pitch as he becomes more emphatic. If the company does any better in the next quarter, he'll reach soprano levels on the next webcast. He said software revenue growth "succeeded every expectation." The driver is S4/Hana with its in-memory data basis. McDermott said customer adoption of this product means, "This is the fastest upgrade cycle in our history."

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