SAP AG, the German software maker has issued reports indicating a drop in sales. The last two weeks has seen an abrupt drop in sales as companies cut back on computer-related spending due to the widening financial crisis.

SAP shares have come down 16 percent making it their biggest drop in nearly 12 years. At the other side Oracle also registered 7.6% fall in its shares.

SAP, the world’s biggest maker of software blamed the crisis in the financial industry and economic uncertainty for causing its customers to put orders on hold.

That slowdown in sales has also affected other tech companies, including makers of software, computers and networking equipment.

Among others, which have seen a fall in shares were Microsoft, which dropped 5.9 percent, IBM, which fell 4.4 percent, and Cisco Systems, which declined 4.9 percent, and EMC fell 7.5 percent.

SAP, in late July expected to reach the upper end of its full-year 2008 software and software-related service revenue growth range of 24-27 percent at constant currencies.

SAP had frozen hiring but was not cutting staff.

The company plans to present full quarterly results and update its 2008 forecast on October 28.

Renu Singh/ITVoir Network