SAP posted solid second-quarter results despite global economic turmoil and gave an upbeat 2008 outlook, sending shares in the world's biggest business software maker more than 6 per cent higher today.
"We are watching the market very carefully and from all I can see, we can be optimistic," Chief Executive Henning Kagermann, who will hand over to co-CEO Leo Apotheker next year, told CNBC Europe TV.
Mr Kagermann also brushed off new claims by US rival Oracle that SAP management had been aware of corporate theft at its TomorrowNow unit. "All the measures I and the board have taken were correct," Mr Kagermann said.
Oracle accuses SAP of illegally using customer log-ins to steal copyrighted material from its password-protected website and is seeking damages from SAP that could top $1 billion.
SAP stock hit a seven-month high on Germany's blue-chip index DAX this morning after the news was released.
Business software makers are less likely to suffer from a weakening economy because their products are designed to help companies become more efficient and save costs, Mr Kagermann said.
Analysts were pleased with the results and said the outlook should strengthen investor confidence.
Software AG, Germany's second-biggest software company after SAP, last week stuck to its full-year forecast despite tough market conditions, while Oracle and smaller rival Lawson Software Inc have given cautious outlooks, citing economic uncertainties.
SAP's second-quarter software and software-related service revenues, an important indicator of future maintenance revenue streams, beat market expectations with a 21 per cent increase to €2.06 billion. Earnings before interest and tax (EBIT) rose 2 percent to €593 million.