SAP rides the B2B elevator down

Commerce One investment bites into profits...

By Jon Bernstein, 24 July 2001 07:45

NEWS Faith in the long-term prospects of B2B software is likely hit German software giant SAP where it hurts - in the bottom line. SAP, which only last week posted impressive second quarter results, has had to revise profit estimates as it looks to invest more heavily in Commerce One, a maker of ecommerce software. Commerce One already enjoys SAP's investment and yesterday the German firm said it was increasing its stake in Commerce One from 4.4 per cent to 20 per cent. Under US accounting rules, which SAP abides by, SAP will now have to take losses or gains from its stake into account in its own profit statements. Last week SAP announced its net income, for its Q2 up to 30 June, up E206m (£127m) at E0.65 (£0.40) per share, compared with E116m (£71m) at E0.37 (£0.22) per share for the same period last year.

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