Revenues were light relative to expectations. They have struggled to gain traction in consulting and recently lost the head of the business.
Licenses are a little better, though they could have been a bit stronger. Margins were a little weaker than the Street had been looking for.
This is a good move for Business Objects. With Mr. Schwarz, they have brought on an industry veteran who has experience in growing companies.
We believe momentum for SAP is set to continue. News flow will remain strong...well into 2007.
You might see some profit taking given the share price increase... but it's still been a very solid quarter.
Not to downplay it, but this is fairly straightforward. Some of these changes don't sound incredibly complex, but if you do enough of them it makes a big difference.
Autonomy is getting half of its sales in the U.S., has laid out a solid strategy with original equipment manufacturers, has a solid management team and market opportunity,
You take those three data points together and you start to put together a picture of a company that's performing very well, ... We're not seeing the slowdown at Autonomy that other companies are facing.
We continue to believe SAP is seeing an improving IT-spending environment and is taking market share from global peers, especially Oracle.
Unstructured information is common to just about every industry. This story has legs to support investors for quite a long time.
