SAP Cuts Spending as Profit Forecast Falls Short

The enterprise software vendor says income is on track to reach 95 percent of the company's annual goal.

eWeek: In an interview with German news magazine WirtschaftsWoche SAP CFO Werner Brandt confirmed that the company's income so far this year has not met expectations. In the first six months of 2012, the enterprise software vendor earned $2.35 billion, putting it on track to make $6.23 billion to $6.48 billion for the year. That falls short of its $6.56 billion goal for income.

As a result, SAP plans to trim expenses. "We have to cut costs considerably in the second half to reach our internal target," Brandt said. While the company is not planning layoffs or a hiring freeze, it does plan to replace some travel with videoconferencing.

Tags: enterprise software, earnings, SAP

0 Comments (click to add your comment)
Comment and Contribute


(Maximum characters: 1200). You have characters left.



IT Management Daily
Don't miss an article. Subscribe to our newsletter below.

By submitting your information, you agree that datamation.com may send you Datamation offers via email, phone and text message, as well as email offers about other products and services that Datamation believes may be of interest to you. Datamation will process your information in accordance with the Quinstreet Privacy Policy.