Software giant SAP cuts 2008 revenue forecast

Software giant SAP cuts 2008 revenue forecast
Photo: DPA
The world leader in business software, German IT giant SAP, said Monday that it had dropped its 2008 financial targets because of the uncertain economic environment.

“In light of the uncertainties surrounding the current economic and business environment, the company decided to no longer provide a specific outlook” for software and software-related revenues, a statement said.

SAP had initially hoped to increase software license sales by 24-27 percent this year at constant exchange rates. Its operating margin margin forecast was lowered to 28 percent from 29 percent previously.

The group said a few weeks ago that it had suffered a “brutal” drop in orders, but published third quarter figures that were generally in line with analysts’ expectations. Net profit in the three-month period fell by 5.0 percent to €388 million ($482 million).