SAP profits fall, abandons full year forecast
The future's not ours to see
SAP managed to increase revenues in the third quarter but saw net income fall five per cent.
Software and software-related revenue was up 15 per cent to €1.99bn but net income was €388m, compared to €408m for the third quarter of 2007. This just tops the company's reduced earnings call it put out in early October.
Basic earnings per share are down 8 per cent to €0.90.
But looking forward SAP said: "In light of the uncertainties surrounding the current economic and business environment, the Company decided to no longer provide a specific outlook for Non-GAAP software and software-related service revenues for the full-year 2008."
Instead it said it hoped to maintain non-GAAP operating margin at around 28 per cent, excluding a write-off of €180m related to the purchase of Business Objects. This assumes the company can grow non-GAAP software and software-related revenues, excluding write-downs, between 20 and 22 per cent for the full year.
Full statement available here. ®