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SAP 3Q Revenue Rose, But 2001 Earnings Estimates Are LoweredSAP 3Q Revenue Rose, But 2001 Earnings Estimates Are Lowered
Revenue increased 16%, but license revenue was 7% less than the same quarter last year. The company had predicted growth of more than 20% in 2001, but lowered its expectations for the year to 15%.
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Enterprise software vendor SAP increased overall revenue in the third quarter ending Sept. 30, though operating income and net income were down. The company lowered its earnings estimate for 2001 and warned it would cut jobs to lower costs.
For the quarter, SAP revenue increased to $1.48 billion, 16% more than the same quarter a year ago. License revenue dropped to $447 million in the quarter, 7% less than the same quarter last year. The company had previously predicted growth of more than 20% for the year, but lowered its expectations to 15%.
Third-quarter 2001 operating income, before charges for stock-based compensation programs and charges related to the acquisition of portal vendor TopTier Inc. for $400 million, were flat at $180 million. Net income, at $71 million, was down 11% for the quarter, adjusted for charges related to the TopTier acquisition and a $250 million investment to increase ownership of Commerce One Inc. to 20%.
Co-chairman and CEO Hasso Plattner in a statement blamed the downturn in the U.S. economy for the company's disappointing results, saying customers postponed software purchases set to close in the quarter.
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