SAP saw a steep drop off in sales in the second half of september due to companies spending less on computer related products in the face of the economic troubles. SAP warned of lower than expected revenues in the upcoming third quarter. Shares have plummeted from $57 to about 40 in less than two weeks.
SAP's revenue grew 18% largely due to the 25% increase in software sales. A settlement with I2 Technologies and acquisition costs from its acquisition of Business Objects pulled net income down 9% in the quarter.
Credit Suisse downgraded SAP from "outperform" to "underperform" saying that they had weak trading, average operating performance, and an unrealistic outlook for 2008.
SAP announced to acquire Business Objects for $6.78 billion. Shares on SAP dropped significantly due to skepticism surrounding the acquisition and whether SAP would see any profit from this move.