SAP disappoints with quarterly profit of 403 mln euros

Apr 28, 2011

German software giant SAP said on Thursday that it made a net profit of 403 million euros ($600 million) in the first quarter, a four-percent gain which fell short of expectations.

Analysts polled by Dow Jones Newswires had forecast a net profit of 515 million euros, and shares in the company plunged by more than six percent in midday Frankfurt trading.

SAP's US rival Oracle has posted strong results, meanwhile.

SAP nonetheless confirmed its full-year sales forecast as revenue from software and related services climbed by 20 percent to 2.33 billion euros, owing to the consolidation of the US firm Sybase that SAP bought last year.

SAP, which makes professional software, has rebounded from a slump seen during the global economic downturn, and co-chief executive Bill McDermott was quoted in a statement as saying: "Our strong momentum continued in the first quarter."

The group expects sales of software and related services to gain 10-14 percent this year from the 2010 figure of 9.87 billion euros.

But its shares plummeted in Frankfurt, shedding 6.30 percent to 42.8 euros while the DAX index on which they are listed was 0.33 percent stronger overall.

The company's quarterly results were "short of expectations in every respect," Dow Jones quotes Cheuvreux analyst Bernd Laux as saying.

Explore further: Ford recalls 432K cars because of software problem

Related Stories

SAP posts 12 percent gain in third quarter profit

Oct 27, 2010

SAP, the professional software giant, posted on Wednesday a third quarter net profit of 501 million euros (690 million dollars), a gain of 12 percent from the same period a year earlier.

SAP posts better-than-expected net profit

Jul 29, 2009

SAP, the German professional software giant, posted a better than expected second quarter profit on Wednesday, and said it would maintain tight cost controls for the remainder of the year.

Philips posts surprise profit as cost cuts help

Oct 12, 2009

Dutch electronics giant Philips reported on Monday a surprise profit for the third quarter as a series of cost cutting measures to cope with the global slump helped the bottomline.

Recommended for you

Barnes & Noble names Sears Canada CEO for retail business

9 hours ago

Barnes & Noble, which is splitting into two companies next month, named Sears Canada CEO Ronald Boire to lead its retail operations and said company CEO Michael Huseby will become executive chairman its educational wing.

Hewlett-Packard moves forward with plan to split in two

Jul 01, 2015

Hewlett-Packard is moving forward with plans to split into two companies, filing paperwork to create a new entity that will sell commercial technology, while a separate spinoff will sell personal computers and printers.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.