SAP Won’t Make Sales Target
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FRANKFURT, Germany (AP) _ SAP, the world’s largest supplier of business-management software, said Thursday it would show a second-quarter net loss of 235 million euros ($233 million) and wouldn’t reach its revenue target for this year.
Walldorf-based SAP said business would grow by 5 percent to 10 percent instead of the 15 percent it had predicted.
In releasing the preliminary second-quarter figures, the company blamed a drop in total sales of 4 percent, and a 23 percent drop in sales of its main product _ software that helps companies manage back-office functions like production and distribution.
Included in the second-quarter loss is a one-time charge of 318 million euros ($316 million) for SAP’s share of losses at the U.S. e-commerce firm Commerce One, in which SAP owns a 20 percent stake.
In the first quarter, SAP’s net profit fell to 65 million euros ($57 million), from 109 million euros in the same period last year, amid widespread weakness in the computer industry.