SAP has posted a slide in third quarter profits and margins, as
the effects of the global economic downturn start to hit large
software suppliers.
For the quarter ended 30 September, SAP saw its net profit slump
5% to £260m, and its operating margins fall almost 3%, when
compared to the same quarter last year.
SAP still tried to put a positive spin on the disappointing
results though.
Henning Kagermann, co-CEO at SAP, said, "The third quarter 2008
was SAP's 19th consecutive quarter of double-digit growth in
software and software-related service revenues at constant
currencies."
But SAP is not burying it head in the sand. Kagermann said,
"Customers are continuing to spend on our products, but the
economic and business environment is uncertain. Our business model
is flexible, and we are focusing on protecting our operating
margins and earnings."
He added, "We are assessing business activity continuously, and
we are balancing the need for greater efficiencies with steady
advancements in our products, customer services and
technologies.
"We have been through uncertainty before, and have always
emerged as a better, stronger and more efficient company."
Third quarter sales were up 14% to £1.85bn, but obviously
weren't as profitable.