By Paul Kunert
28 October 2008
Uncertainty over future economic prospects as the world slides into recession has prompted SAP to withdraw its full-year forecast for software sales and software-related service revenues.
Three months ago, SAP had predicted full-year 2008 Non-GAAP software and software-related service revenues to increase at the upper end of the range of 24% to 27% at constant currencies, and full-year 2008 Non-GAAP operating margin to be at the upper end of the range of 28.5% to 29% at constant currencies.
But at the announcement of third quarter results today, the German software giant stated, “In light of the uncertainties surrounding the current economic and business environment, the Company has decided to no longer provide a specific outlook for Non-GAAP software and software-related service revenue for the full-year 2008.”
Results for the quarter ending 30 September revealed a 13% increase in Non-GAAP income to €475m on total revenues of €2.8bn.
Henning Kagermann, SAP joint-CEO, said the third quarter was the company’s 19th consecutive quarter of double digit growth in software and software-related services revenues.
Customers were still spending on SAP products but “the economic and business environment is uncertain. Our business model is flexible, and we are focusing on protecting our operating margins and earning,” said Kagermann.
The company has steered “through uncertainty before, and has always emerged as a better, stronger and more efficient company,” he added.
