SAP cuts back growth predictions

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SAP cuts back growth predictions

Enterpise Resource Planning software maker SAP has released financial results for the third quarter and cut back its growth prediction for the full year.

The company's net income stood at 78m euros (£48m), adjusted for the cost of acquiring TopTier Software and for additional investment in Commerce One. That marks a drop of 12% from the third-quarter 2000 revenue of 88m euros (£55m).

Revenue for the quarter amounted to 1.65bn euros (£1.03bn), an increase of 16% over the same period last year, the company said.

Earnings per share for the quarter came to 0.25 euros, as against 0.28 euros for the same period last year.

SAP company is now predicting revenue growth of 15% instead of the 20% forecast at the end of the second quarter.

SAP agreed in March to acquire TopTier, a maker of portal software, for $400m (£277m) in cash. In June, the company promised to inject up to $250m (£173m) in new investment capital into electronic commerce specialist Commerce One, increasing its stake in the company to just over 20%.

SAP hinted at the possibility of job cuts, though it maintained that it would continue to build on its profile in high-growth areas, such as customer relationship management (CRM) and supply chain management (SCM).

The company's overall licence revenue was down 7% from the 480m (£299m) euros collected in the third quarter of 2000. In contrast, product revenue in the third quarter was up 9% to 995m (£621m) euros; consulting earnings rose 30% to 524m (£327m) euros, and receipts from training grew 19%, to 113m euros.

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