SAP 1Q Net Profit Falls 16 Percent To Euro204 Million

"While visibility for software revenues remains limited, we continue to take the necessary steps to protect our margin in this tough operating environment," said Leo Apotheker, the co-chief executive of SAP.

"The cost containment measures that we initiated in October of last year and carried into the first quarter of 2009 have really taken hold, and we are pleased with the resulting margin performance. We will continue to maintain tight cost controls," Apotheker said.

The company warned that the second quarter would be difficult to compare to the year-ago quarter because of strong results in 2008 — prior to the economic crisis which disrupted global markets, and caused a sharp drop in software product sales.

SAP said it will continue with the cost saving measures that it initiated in October 2008 and will take further steps to reduce expenses, including maintaining tight cost controls on all variable expenses, including third-party related costs, as well as capital expenditures.

"While SAP's first quarter results missed consensus expectations on the top line, they exceeded expectations on the bottom line," UniCredit analysts said in a note to clients. "SAP's maintained full year outlook, ... should give the market confidence in the full year earnings estimates."