SAP sees licence sales rise 10% during Q1

European software vendor SAP met analysts' forecasts for sales of new licences but missed expectations for earnings in its 2007 fiscal first quarter, it said last week.

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By  Administrator Published  April 26, 2007

European software vendor SAP met analysts' forecasts for sales of new licences but missed expectations for earnings in its 2007 fiscal first quarter, it said last week.

The vendor said licence sales - which are an indicator of future performance as they help to win maintenance and service deals - rose 10%, up to US$767million, in the three months ending March 31. While this was in line with analysts' expectations, income rose just 6% to US$588.27million, less than analysts polled by Reuters had predicted.

SAP, which saw one of its most senior executives Shai Agassi quit the company and is facing a lawsuit from rival Oracle, said it was sticking to its full-year targets.

"We are pleased with our first quarter results," chief executive Henning Kagermann said in a statement.

"On a constant currency basis, we achieved a strong increase in software and software-related service revenues, and reported double-digit growth rates in each region," he stated.

Software and software-related service revenues, described by SAP as a key indicator of performance as it starts to sell software over the internet and by subscription, rose 9% to US$2.065 billion.

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