German ERP vendor SAP AG has reported first-half profits before tax up some 40% compared to the same period last year, on revenues which rose 60% during the period. It also said that, had it not been for the provisions made for the STAR employee incentive plan, the pre-tax profits would have risen 46%. Without giving more detailed information, the company also said it was maintaining its forecast of a 30%-35% increase in pre-tax profits for the entire year. The market received the information poorly, however, no doubt noting that profitability has not been accompanying revenue growth, and using that fact as a pretext for taking profits. SAP’s shares dropped more than 10% at one point during Friday trading on the Frankfurt exchange, closing down 4.49%.
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