SAP Cautious on 2008 Outlook

By Reuters  |  Posted 2008-01-30 Email Print this article Print
 
 
 
 
 
 
 

The German software maker has not ruled out more acquisitions, despite still integrating its Business Objects buy.

FRANKFURT (Reuters)—SAP forecast sales growth and higher margins on Wednesday despite a volatile wider economy but the software maker gave a conservative outlook for 2008 as it expands into new markets.

The world's biggest maker of business-management software said its operating profit margin should inch up to 27.5-28.0 percent this year from a comparable figure of 27.3 percent in 2007, excluding acquisition-related charges.

But the company said software-related sales growth would slow this year as it integrates a 4.8 billion-euro ($7.1 billion) acquisition and steps up investments in a new proposition for smaller customers.

SAP shares rose 1.6 percent at 31.94 euros by 1107 GMT, off an earlier high of 32.72 euros and outperforming a 0.3 percent weaker German blue-chip DAX index.

DZ Bank analyst Oliver Finger wrote in a note: "Stand alone guidance (12-14 percent) seems to be conservative, but given the difficult market environment we assess this as a positive."

SAP said it expects software and software-related services revenues to grow by 12-14 percent this year at constant currencies -- the same guidance it exceeded in 2007 with a 17 percent increase.

Including sales from recently acquired Business Objects and excluding acquisition-related revenue writedowns of about 180 million euros, these revenues should rise by 24-27 percent at constant currencies, SAP said.

 
 
 
 
 
 
 
 
 
























 
 
 
 
 
 

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