In brief: SAP surprises with healthy results

NEWS German software company SAP has posted a 61 per cent rise in sales for its first quarter, despite earlier warnings of a downturn in fortunes. The company also posted pre-tax profits of $460m - a rise of 43 per cent over the same period last year. However, recent investments in staff expansion and an employee investment scheme meant costs rose by 70 per cent to $940m. The company admitted that the economic unrest in Asia had a "larger than anticipated effect", leading to a 5 per cent decrease in sales, instead of the projected 14 per cent increase. Dr Henning Kagermann, co-chairman at SAP, remained optimistic about the company's long-term fiscal fortunes, claiming it will "maintain its previously announced expectations for 1998 - that pre-tax profit for the year will increase 30 to 35 per cent".