SAP 1Q Net Profit Falls 16 Percent To Euro204 Million

GEORGE FREY

FRANKFURT (AP) — German software company SAP AG said Wednesday that the company's first quarter net profit fell 16 percent because of factors including lower software revenues as businesses cut back purchasing in the recession, and on charges from staff reductions.

The Walldorf-based company said net profit in the January-March period fell to euro204 million ($269 million) from euro242 million in the first quarter a year ago.

Sales for the period were also 3 percent lower at euro2.4 billion from euro2.46 billion.

"Due to the continued uncertainty surrounding the economic and business environment, SAP will not provide a specific outlook for software and software-related service revenues for the full-year 2009," the company said in its report.

Germany's largest software company said it saw euro160 million in restructuring charges resulting from work force reductions during the period. It said those charges are expected to amount to between euro200 million and euro300 million for the year.

The company said software related service revenues were flat at euro1.74 billion, while software revenues alone decreased 33 percent to euro418 million from euro622 million in the first quarter of 2008.