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SAP Sees Increase in Profits and Revenue During Q3

SAP has reported a rise in revenue and profits during the third quarter of 2011.

According to an article on Reuters, the company announced a 16 percent rise in the sales of key software and software related services during the third quarter, rising to 2.69 billion euros.

Meanwhile, the sales of the entire software group increased to 3.41 billion, more than the 3.32 billion estimated by analysts. SAP also reported a 23 percent rise in operating profits to 1.13 billion euros beating analyst estimates of 1 billion euroes.

Profits increased quickly after the company gained 723 million from a reduction settlement provision created by the company during an intellectual property lawsuit with rival Oracle.

“SAP’s pipeline remains very strong and companies continue to invest in information technology, in particular in innovative software solutions,” said the company in a statement, adding that the uncertain economic environment refrained it from raising its estimates.

The rise in sales implies a healthy IT spending environment among businesses as they continue to operate in volatile economic conditions. Follwing the announcement, SAP shares increased 2 percent to 41.35 euros.