Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):
SAP Sees Slower Software Sales
Summary: German enterprise software vendor SAP pre-announced Q2 results that fell far short of analyst expectations. Software sales are expected to be 621 million euros, versus consensus expectations of 675 million euros. Software sales are expected to rise by 16% in the US, by 3% in its core Europe, Middle East and Africa market, but to be flat in the Asia-Pacific region. Asia-Pac sales rose by 12% in Q1. Although the company re-iterated its outlook for the year of 15-17% revenue growth, the stock fell 7.5% in European trading.
Comment on related stocks/ETFs: SAP trades in the US as an ADR (NYSE:SAP), and is down over 8% today on the news. So software now joins the tech meltdown, following semis, PC, flat panels and storage. Oracle (NASDAQ:ORCL) has less exposure to Europe and more to the US, but like every other large US tech company relies on the Asia-Pac region for sales growth.