SAP on Tuesday announced third quarter results and pulled its outlook for 2008 "in light of the uncertainties surrounding the current economic and business environment." SAP did say it can keep 2008 operating margins at about 28 percent.
SAP's third quarter results (statement) were in line with what the company detailed a few weeks ago when it said demand in September slowed dramatically. Amid economic turmoil the brakes have been slammed on many large IT projects.
Co-CEO Henning Kagermann outlined the current state of affairs:
"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."
By the numbers:
- Here's the regional breakdown (click to enlarge):
- The company reported net income of 388 million euro, down 5 percent from a year ago. Revenue was 2.76 billion euro, up 14 percent from a year ago. Operating margin was 22.2 percent, down from 25.1 percent a year ago.
- Software revenue was 763 million euro, up 7 percent and 11 percent if you assume constant currency rates. The euro-dollar rates have jumped this quarter in favor of a stronger dollar.
- Software and software-related service revenue was 1.99 billion euro, up 15 percent from a year ago.
- If you exclude the acquisition of Business Objects SAP had organic growth of 7 percent.
- SAP reckons its market share is 33.4 percent, up 6.5 percent from a year ago.
- SAP ended the quarter with 51,863 employees, up from 43,861 a year ago.