SAP Meets Lowered Financial Forecast
Co-CEO Hasso Plattner says the U.S. accounting scandal cost his company millions.Blaming the slumping economy and, to a larger extent, the ongoing accounting crisis in the U.S., German enterprise software maker SAP AG this morning announced disappointing results for the second quarter. Earning were in line with the preliminary results that SAP issued last week, when company officials warned they would not meet earlier projections of 15 to 20 percent revenue increase for the full year, but will come in closer to a 5 to 10 percent increase for the year. In fact, for the second quarter, ended June 30, total revenues declined four percent over the same period last year to about $1.78 billion, versus $1.85 billion in 2001.
EBITDA results, which amount to earnings before certain charges are taken into account, showed a profit of about $380 million, versus $450 million for the same period last year. Net income, excluding acquisition charges and costs associated with an investment in beleaguered e-business software maker Commerce One Inc., fell 25 percent to around $175 million, compared with $235 million for the same year-ago period.