SAP profit falls in Q3; vendor drops sales forecast

Editor's note: This story has been updated. The most recent version can be found here.

SAP AG reported late Monday that its profits fell 5% year over year in the third quarter, and the software vendor canceled its previous sales forecast for the rest of the year.

Net profit for the quarter dropped to €388 million compared to €408 million for the same period ending Sept. 30 last year. SAP also reported nine-month results, with net income for the first three quarters of the year totaling €1.57 billion, a 4% decrease over last year's profit of €1.62 billion for the same period.

"In light of the uncertainties surrounding the current economic and business environment, the company decided to no longer provide a specific outlook for non-GAAP software and software-related service revenues for the full-year 2008," SAP said in a statement. However, SAP did say it expected its non-GAAP operating margin for the year, excluding a write-down of €180 million from its purchase of Business Objects SA, to be about 28%.

SAP -- which warned earlier this month that its Q3 results would be below expectations -- and other major IT vendors are being watched to see how the technology sector will weather the current financial and economic crisis.

Copyright © 2008 IDG Communications, Inc.

7 inconvenient truths about the hybrid work trend
Shop Tech Products at Amazon