SAP revenues rise on software sales to smart devices

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German business software maker SAP has reported a large increase in software revenue.

SAP said revenue from its business software increased 26% in the first quarter.

Revenue was boosted by the purchase of Sybase, which makes database software for devices such as smartphones.

SAP also reported a net profit of 403m euros ($598m) for the first quarter of 2011 against a net profit of 387m euros at the same period in 2010.

However, SAP’s overall results fell below analysts’ expectations, which had been buoyed by strong results from US technology firms Oracle and IBM.

“I believe SAP’s disappointing performance is due to its strong position in Europe and the Middle East, where growth is limited,” said analyst Bernd Laux at Cheuvreux.

“Add to this the increasingly saturated business with big corporate customers and the fact that new products are still small, and it’s clear why SAP is falling behind.”