By Flemming Emil Hansen and Philipp Grontzki
Of DOW JONES NEWSWIRES
VIENNA -(Dow Jones)- SAP AG (SAP) doesn't expect the world economy to recover quickly from the economic crisis and so boost investment in business software, a senior company executive told Dow Jones Newswires.
"I think it's fair to say there won't be a fast swing back. No-one is going from a full foot on the brakes to a full foot on the speeder again," SAP executive board member Jim Hagemann Snabe said in a recent interview.
"The economic development will look more like a U-shape than a V-shape. Probably a wider U," he said.
SAP, like its two main peers, Microsoft Corp. (MSFT)and Oracle Corp. (ORCL), has seen demand for its products dwindle as companies have cut software investment budgets due to the financial and economic crisis.
Wednesday, SAP said it expects its closely watched full-year software and software-related service revenue will fall 6% to 8% on year on a non-GAAP basis, a downwards revision from its previous forecast for a 4% to 6% decline, chiefly blaming weaker markets in emerging countries and Japan.
Snabe said it is unclear whether the economic downturn has bottomed out yet, adding that setbacks may still happen in some markets, without elaborating.
"I can't say for sure that the economy has already left the bottom and is on the way to recovery. I personally see more trends towards optimism than pessimism," he said.
SAP Wednesday reported a 9% decline in third-quarter revenue to EUR2.51 billion, while net profit rose 12%, to EUR435 million on sharp cost cutting, but nevertheless both fell short of analysts' expectations.
Company Web site: www.sap.com
-By Flemming E. Hansen, Dow Jones Newswires; +43 1 513 69 22 10; flemming.hansen@dowjones.com