Tuesday, July 25, 2006
RED HERRING | Software Kings� Mixed News
RED HERRING Software Kings� Mixed News: "SAP expects its full-year product revenue to grow 13 to 15 percent from the prior year; total revenue is expected to grow 15 to 17 percent.
SAP shares lost $1.39 to $44.76 on the New York Stock Exchange in normal trading after the earnings news was released, but climbed $0.49 to $45.25 in after-hours trading.
Analysts showed skepticism. �Slowing growth at the strongest vendor in the second-strongest period in the year is very much the issue in our view,� ICAP analyst Richard T. Williams wrote in a research note.
However, analysts believe SAP can recuperate from this quarter. Some analysts blamed SAP�s difficulties on the increase in competition in the software market, especially from Oracle as it consolidates $19 billion worth of acquisitions. "
SAP shares lost $1.39 to $44.76 on the New York Stock Exchange in normal trading after the earnings news was released, but climbed $0.49 to $45.25 in after-hours trading.
Analysts showed skepticism. �Slowing growth at the strongest vendor in the second-strongest period in the year is very much the issue in our view,� ICAP analyst Richard T. Williams wrote in a research note.
However, analysts believe SAP can recuperate from this quarter. Some analysts blamed SAP�s difficulties on the increase in competition in the software market, especially from Oracle as it consolidates $19 billion worth of acquisitions. "
