SAP Regains Ground on Oracle with Preliminary Record Results (SAP, ORCL)

If you have tracked enterprise software for long, you know that Oracle Corporation (NASDAQ: ORCL) has been taking market share from SAP AG (NYSE: SAP) for years and years.  It has been taking it by acquisitions and often organically.  The problem is that Oracle’s latest earnings were disappointing enough that many investors found it far enough off-base and out of character enough that they have started to lose faith.  Now a preliminary earnings and revenue report from SAP this morning may further add some question.

SAP reported record software revenue up 16% in the quarter to 1.74 billion euros, and up 22% for the year 2011.  More important is that the company is claiming to have beaten its annual guidance in non-IFRS software and
 software-related service sales.  It is also claiming to have exceeded its earnings guidance on higher margins.

SAP is planning to release more detailed quarterly and annual financial data on January 25 but this was called by the company as having been its “best ever full-year and fourth quarter” in the release.

After closing at $53.25 in New York against a 52-week range of $47.39 to $68.39, the pre-market trading has shares up just over 2.5% at $54.57 in active trading.

Shares of Oracle are indicated down 0.4% at $27.05 against a 52-week range of $24.72 to $36.50.

JON C. OGG