SAP Q3 net up 16% to $486m

WALLDORF: SAP, the world’s largest maker of business-management software, said third-quarter profit rose 16% on increased sales in the US and Europe.

The shares fell after the company said ’06 profitability and sales growth may not meet the high end of its forecasts.

Net income climbed to E388m ($486m), from E334m, a year earlier. License revenue, a gauge of future fees from consulting and maintenance, rose 17% to E691m.

Chief executive officer Henning Kagermann introduced software that manages payroll and billing more easily to combat main competitor Oracle, which spent $20bn buying SAP rivals. Thursday’s comments on the forecasts came after SAP’s software sales missed analyst estimates .