The Channel logo

News

By | John Oates 30th April 2008 13:53

SAP reports profits drop, delays ByDesign rollout

Software-as-a-service-eventually

SAP has increased revenues for the first quarter of this year, but net income has fallen and it is delaying the rollout of its webhosted business management product.

Results for the first quarter ended 31 March 2008 show revenues up 14 per cent to €2.46bn, but net income is down 22 per cent to €242m, compared to €310m for the same period of 2007.

The company is delaying rollout of its Business ByDesign product - an online software-as-a-service aimed at small and medium businesses. For this year it will concentrate on six countries, and it predicts it will take a year to a year and half longer than expected to get to €1bn revenues and 10,000 customers. It expects to have less than 1,000 customers this year. Because of the delay SAP will invest €100m less than expected in Business ByDesign.

Earnings per share were down 19 per cent compared to last year to 21 cents per share.

SAP shares fell by just over three per cent on the news.

Henning Kagermann, joint CEO at SAP, said: “Our growth strategy, which comprises three pillars – the established business, the midmarket and the business user solutions - is working quite well." He said adoption of ERP 6.0 is exceeding expectations and the midmarket is growing well, with over 1,570 customers added in the quarter. ®

alert Send corrections

Opinion

Walking on water, image via Shutterstock

Chris Mellor

IDC stats reveal who's who in the backup appliance bearpit
Carry on Cleo

Gavin Clarke

Infamy, infamy, Amazon and Microsoft have all got it in for me!

Tim Anderson

Also signals stronger cross-platform tools, access to new markets

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers