Insights From SAP's Earnings Call (AMR)

Last week, Jim Shepherd reviewed SAP’s pre-announcement that its second quarter results would come in slightly below analyst expectations (see the AMR Research Alert article “SAP Warns on License Revenue Growth, Holds Firm on 2006 Outlook”). The company blamed it on lower-than-expected sales in Europe and Asia. Management did its best to dispel rumors that business was slowing by noting that “order entry” and the pipeline remained strong.