Weak First QuarterBy Reuters - Print
SAP's quarterly numbers are not up to snuff.
WEAK FIRST QUARTER
In the first quarter, SAP's software and software-related service revenues were 1.736 billion euros ($2.70 billion), lower than the average 1.829 billion forecast in a Reuters poll. Total sales rose 14 percent to 2.46 billion euros.
In the Americas, software sales fell 13 percent. SAP does not break down its software sales by country but it said software and related service revenues slipped 1 percent in the United States, where it makes a quarter of overall sales.
In Europe, where SAP makes half its sales, software and related service revenues rose 22 percent, including an 11 percent increase in Germany.
Chief Financial Officer Werner Brandt said the net effect on first-quarter sales of the weak dollar, which touched a low of $1.60 to the euro last week, was a negative 46 million euros.
Total operating income fell 18 percent to 359 million euros, less than the lowest estimate in the Reuters poll, and net income fell 22 percent to 242 million, missing the poll average.
SAP said it gained market share in the quarter and had 32.6 percent of the $37.4 billion global core enterprise applications market at the end of March, up from 31.9 percent a quarter ago.
To read the Reuters poll on SAP's first-quarter results, please double click on [ID:nL04014253]
(Reporting by Georgina Prodhan; Editing by Louise Ireland and Quentin Webb)
© Thomson Reuters 2008 All rights reserved
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