Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Subscribe
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Subscribe
    Home Development
    • Development

    SAP Meets Lowered Financial Forecast

    Written by

    Renee Boucher Ferguson
    Published July 18, 2002
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      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.

      Second quarter license revenues decreased from almost $650 million for the second quarter in 2001, to around $547 million for the current quarter, according to officials of the Walldorf, Germany, company.

      Software revenues related to SAPs newer lines of business, including mySAP CRM (customer relationship management) and SCM(supply chain management) were particularly hard hit. CRM revenues were down roughly 3 percent from 2001, to a little more than $100 million. SCM sales were down a startling 31 percent, to about $105 million.

      “This was not a splendid quarter, but put it in perspective a little bit,” said Hasso Plattner, co-CEO of SAP, during a press conference this morning at SAPs New York City offices. “The sudden rise of uncertainty in [corporate financial] reporting really hurt our business. Major corporations were affected – some were prospects, some were customers. We had significant millions of dollars that we could not close because of that.”

      Plattner said that in contrast to the current accounting woes in American businesses, SAP stands for conservative accounting.

      Page 2

      : SAP Meets Lowered Financial Forecast”>

      “But with the dismal state, we wrote down some of software companies [in SAPs portfolio] as well,” said Plattner. “A big chunk of the cake was obviously Commerce One.”

      Commerce One remains a strategic partner to SAP, according to Plattner.

      In regard to its own financial standing, SAP said it will not implement a massive headcount reduction, as had been rumored, but rather take a more sophisticated approach to cost cutting. That includes salary and benefit reductions, a hiring freeze, no replacements for staff lost through attrition, project scale backs and a revision in travel procedures, according to Plattner, who stressed that the company will not cut back on research and development.

      “We have to offer software solutions that make these companies really tick,” said Plattner. “And that means we need people. We [will enforce] a reduction of projects and a revision of travel; we let our people that work hard travel in a nice style. We will travel coach now. We will ask our employees to renegotiate with us, sit down, so that we can avoid [layoffs].”

      Related Stories:

      • SAP Warns of Revenue Shortfall
      • Special Report: Earnings Roundup
      Renee Boucher Ferguson
      Renee Boucher Ferguson

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.