German business management software vendor SAP has said sales will drop more than expected this year as clients spend less in the recession.
According to Bloomberg, the firm said that software and related service revenue will decrease by six to eight per cent in 2009, excluding a writedown from acquiring French software company Business Objects. In July, it had predicted a drop of between four and six per cent.
SAP, whose customers include Apple, Coca-Cola and Wal-Mart, cut its sales outlook for the second time this year after reporting a Q3 profit increase of just 12 per cent – less than expected.
“While we are seeing signs of stabilisation in the general environment, the market remains difficult,” chief financial officer Werner Brandt said in a statement to Bloomberg. “Third-quarter software and software-related service revenues came in lower than we expected mainly because of a particularly challenging environment in the emerging markets and Japan.”
SAP’s Q3 non-GAAP revenue from software and related services decreased to €1.94 billion from €2.04 billion in the same period last year. Net income rose to €435 million from €389 million a year earlier. Sales dropped 9.2 per cent to €2.51 billion.