Warnings from SAP that its business took a hit in the thirdquarter sent the vendors shares plummeting and indicated that most of theconfidence that had been washing around the high-end of the software market hasvanished.
The BusinessIntelligence specialist saw shares slide 16% yesterday after it lowered itsestimates based on sales figures.
In a statement accompanying its Q3 preliminary figures itsCEO Henning Kagermann was clear about the impact of the downturn on itsbusiness.
“The market developments of the past several weeks have been dramatic andworrying to many businesses. These concerns triggered a very sudden andunexpected drop in business activity at the end of the quarter,” he said.
He added that it had remained confident throughout most of the quarter butthe meltdown in the banking world in the last week had led to a more grimoutlook.
“Unfortunately, SAP was not immune from the economic and financial crisisthat has enveloped the markets in the second half of September, causing us toreport numbers below our expectations.”
Third quarter 2008 U.S. GAAP software revenues are expected to be between€740 and €750 million which would be an increase of 5% compared to the sameperiod last year.
Kagermann said that despite the problems it still expected to grow and takemarket share.