SAP said execution issues cut into its North American results for the first quarter ended March 31. Software revenue was off by 7 percent in constant currencies for the Americas region. In a conference call held Friday, SAP's co-CEOs William McDermott and Jim Hagemann-Snabe said that swift action had been taken. "We adjusted leadership where we needed to," said McDermott.
That coincided with the confirmation that Robert Courteau president of the North American operations had left the company. Courteau had gotten that position in January 2011 after serving as COO for seven years. SAP confirmed Courteau's exit to major media outlets as a voluntary departure. However, while his name was not mentioned in the call, the McDermott pulled no punches about the change. Despite the drop in software revenue, the company said that software and software-related service revenue for the region was up by 8 percent at constant currencies. McDermott said the mistake made was in combining industry sales efforts with regions. For example, retail industry sales were combined with the east region. The company has returned to a model in which regions and industries each have their own leaders. There was no discussion of specific products, which are usually not the subject of conference calls about preliminary results. Company revenue was about $4.8 billion for the quarter just ended, up 8 percent over a year earlier in constant currencies.
Last modified on Sunday, 16 June 2013