SAP missed market expectations and its forecast for fourth-quarter licence sales as slower growth in the United States was compounded by a weak dollar.
Fourth-quarter licence sales - which are key to future service and maintenance revenue - were about €1.26 billion ($1.63 billion), less than the €1.348 billion average forecast in a Reuters poll of 23 analysts.
For all of 2006, licence sales grew 11 per cent, or 13.5 per cent in constant currency - far short of the goal the company set of 15 per cent to 17 per cent in constant-currency growth.
SAP shares closed down 10.5 per cent at $48.50 in New York. They are due to open in Frankfurt at 8am.
SAP, which is the world's biggest maker of business software, but faces increasingly fierce competition from US-based arch-rival Oracle, gave no reason in its preliminary results statement for the weaker performance.
But it said its licence sales in the United States - its traditional sales driver - grew just 4 per cent, or 15 per cent at constant currencies. That compares with growth of 15 per cent, or 20 per cent at constant currencies, in the third quarter.
SAP makes much of its revenue in US dollars, but its euro zone base means a weak dollar hurts results.