SAP’s revenues for the third quarter increased to 20% to 3 billion euros ($4.1 billion), a little above analysts’ expectations, but net profits missed forecasts, coming in at 501 million euros ($692 million), against hopes for 586 million euros. SAP’s profits also rose by 12% on its third-quarter’s operations, but net profits missed analysts’ forecasts.
Werner Brandt, Chief Financial Officer, said that what their customers want from their technology partners are “choice, openness and innovation” but the opposites seems to be happening because more companies want to hold their customers to one vendor on a single proprietary technology load.
SAP was not expecting to be taken over by Hewlett Packard (HP) Leo Apotheker, new CEO of HP, recently stepped down as head of Sap and replaced by another two co-CEOs who are Jim Hagemann Snabe and Bill McDermott. Snabe and McDermottboth gave their best to provide great services to their customers and employees regarding SAP’s product offerings. During this time, McDermott was scheduled to hold 18 appointments with analysts, investors and the media over course of 12 hours in New York on Wednesday.
SAP believes that by selling software program, they can help companies carry out administrative work like payroll, accounting and inventory management.
The company reported it was maintaining its previous forecasts for revenue to grow by 9 to 11% for the year 2010. Stocks of SAP were also down by 3.3% to 37.06 euros on Wednesday Afternoon in Frankfurt, and its American Depository Receipts gone down to $51.09 (5.6%) in pre-market trading in New York. However, its US-listed stocks are up by 15.5%, or $7.27 from the beginning of the year.