SAP SE (ADR)(NYSE: SAP) and KUKA AG has announced that they will work together around Industrial 4.0 and Industrial Internet of Things (IIoT) to promote the flexibility and automation of production processes. Both the companies want to collaborate, particularly in the areas of manufacturing, mechanical engineering, nd the automotive sector. Further, the integration of KUKA robots into SAP’s digital manufacturing showcase at Hannover Messe is driven by comprehensive standard protocols, such as OPC Unified Architecture. In addition, KUKA and SAP has planed to provide KUKA robot applications based on the SAP Leonardo IoT platform. KUKA robots will be integrated into SAP Cloud Platform, that will help  the companies to evaluate predictive maintenance scenarios and monitor factory floors. KUKA has also planned to use selected SAP technology components as part of its own connyun IoT platform.

Meanwhile, SAP in the first quarter of FY 17  has beaten the analysts’ estimates for the fourth straight quarter, as business software spending grew, though the costs of transitioning to a web-delivered model weighed on profitability. SAP has reported in the first quarter, has reported the adjusted revenue growth of 12 percent to $5.7 billion in the first quarter of FY 17, beating the analysts’ estimates for revenue of $5.16 billion. The operating profit, excluding the share-based compensation, amortization and other charges, was 1.2 billion euros, compared with the average estimate of 1.23 billion euros. However, the company’s profit margin was affected by the higher stock compensation costs due to hiring and a loftier share price.

SAP is moving its customers to a new version of its flagship software called S/4 Hana, which had 5,800 users as of the end of March, up from 5,400 at the end of last year. The software license sales, grew 13 percent to 691 million euros, compared with the consensus estimate of 642 million

Moreover, SAP’s rapid cloud expansion has continued in the first quarter of FY 17. The new cloud bookings grew 49% (44% at constant currencies) in the first quarter, and has reached €215 million. The company has confirmed the projection first issued in January that cloud and software revenues will climb this year by 6 percent to 8 percent, at constant currencies. SAP estimates 2017 sales will be 23.2 billion euros to 23.6 billion euros with operating profit of 6.8 billion euros to 7 billion euros.

SAP stock has risen 26.41% in a year (source: Google Finance). The stock rose over 0.3% this morning (as of  12:15PM EDT on April 25th, 2017; Source: Google finance).