SAP misses targets, gives hazy outlook

SAP failed to give a 2007 outlook for closely watched license sales on Wednesday and said margins would fall as it invests in software for smaller firms, sending its shares down more than 5 percent.

The German software group, which shocked investors by announcing earlier this month that it had missed its 2006 license sales target, said it would no longer forecast license revenues due to changing sales models.

Instead of giving an outlook for software license sales--the money companies pay up front for new software, which hooks them in to maintenance and service contracts--SAP gave a forecast for software and software-related services.

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