SAP says saw business drop off at end of quarter
FRANKFURT (Reuters) - Software group SAP (SAPG.DE) has seen business drop off abruptly, which means third-quarter revenue from software and software-related services was now expected to rise only 13-14 percent, it said on Monday.
The world's biggest business software maker said it expected third-quarter 2008 U.S. GAAP software and software-related service revenues of between 1.970 billion and 1.980 billion euros ($2.68-$2.69 billion).
"The market developments of the past several weeks have been dramatic and worrying to many businesses. These concerns triggered a very sudden and unexpected drop in business activity at the end of the quarter," co-Chief Executive Henning Kagermann said in a statement.
"As SAP is still finalizing the quarter-end closing process, total revenues and operating income are not yet available and will be provided along with further details on October 28, including an update of its 2008 outlook," it said.
SAP shares fell 19 percent by 1530 GMT to 27.945 euros, the second-leading decliner among German clue chips. Shares in rival Oracle (ORCL.O) fell nearly 9 percent.
"The overall fundamentals of our business remain in place. SAP did report double-digit growth in software and software-related service revenues for the quarter and we expect to have gained further market share, even during unfavorable market conditions," Kagermann added.
(Reporting by Michael Shields; Editing by David Cowell)
