German software giant


(SAP) - Get Report

swung to a profit in the second quarter but saw revenue slip because of the weakening dollar. Using constant exchange rates, however, revenue rose 2%.

SAP earned $247.5 million, or 80 cents a share, in the second quarter. That comes out to 20 cents per American depositary receipt, matching expectations compiled by Thomson First Call. In the year-ago second quarter, the company lost $262.1 million, or 84 cents, mainly because of a big charge to write down its Commerce One acquisition.

Revenue fell 8% to $1.8 billion, reflecting flat product revenue and a slight rise in maintenance revenue, along with the dollar's decline. The company said it "believed it continued to gain market share" in the period.

By region, revenue in the Europe, Middle East and Africa sector fell 3%, while revenue in the Americas region plunged 15% (though it rose 6% using constant currency). SAP claims it continued to add market share in the U.S. and that it is "the No. 1 business software application vendor in the U.S. based on software revenue."

"The business environment remains tough, but we executed better than most of our competitors and, more importantly, we once again achieved our goals of improved operating margins and continued market share gains," the company said.

SAP's ADRs were recently down $1.70, or 5.5%, to $29 on Instinet.