While the stock market is getting killed but German enterprise software giant SAP (SAP) is getting blown away: Shares are down 14% today to $39.22 after the company pre-announced a Q3 miss.
Most alarming: “The market developments of the past several weeks have been dramatic and worrying to many businesses. These concerns triggered a very sudden and unexpected drop in business activity at the end of the quarter,” said Henning Kagermann, Co-CEO of SAP. “Throughout the third quarter we felt quite positive about our ability to meet our expectations. Unfortunately, SAP was not immune from the economic and financial crisis that has enveloped the markets in the second half of September, causing us to report numbers below our expectations.”
AP: “SAP said it expects software and software-related service revenues for the July-September period to come in between 1.97 billion and 1.98 billion euros, or $2.66 billion to $2.67 billion. That is up about 13 per cent from the third quarter of 2007, but SAP said in July it expected the figure to increase between 24 per cent and 27 per cent for the year.”