1/2 page forward
Group revenues amounted to €152.2 million in the second quarter of 2007, up 26 percent from the previous year (Q2 2006: €121.0 million), or 30 percent on a currency-adjusted basis. This increase resulted primarily from the acquisitions made, with the acquisition of webMethods, Inc. contributing some two-thirds to revenue growth.
Total revenue generated from operations amounted to €154.8 million in the second quarter of 2007. This figure is €2.6 million higher than the reported quarterly revenue, which had to be reduced to conform with IFRS 3 § 36 accounting standards relating to the first-time consolidation of webMethods, Inc.
Product revenues (licenses and maintenance) increased by 24 percent (currency-adjusted: 28 percent) to €108.7 million (operating product revenue: €111.3 million) in the second quarter of 2007. Of these, licensing revenues performed especially well, climbing 39 percent (currency-adjusted: 44 percent) to €57.3 million (Q2 2006: €41.3 million) in the second quarter of 2007. Our Professional Services business generated revenues of €41.7 million, up 28 percent from €32.7 million in the second quarter of 2007, an increase of 28 percent after €32.7 million in 2006.
Crossvision + webMethods = market leader In our webMethods business line, we increased revenues in the second quarter of 2007 by 99 percent over the prior-year quarter (currency-adjusted: 105 percent) to €61.6 million (operating revenue: €64.2 million); (Q2 2006: €30.9 million). Two-thirds of this revenue growth was attributable to the acquisition of web- Methods, Inc. One positive trend is that both new and existing customers are placing a greater quantity of large orders.
ETS remains at high level Revenue from the ETS business line amounted to €90.6 million in the second quarter of 2007, and thus slightly exceeded the prioryear level (Q2 2006: €90.1 million). This growth appears low at first glance because a number of large orders were already entered on the accounts at the end of the first quarter of 2007, earlier than originally planned. The half-year results for 2007, which show a currency-adjusted revenue increase of 9 percent over the previous year, present a more realistic picture. In the first half of 2007, the ETS segment had lower revenues than in the previous year due to the Company's focus on proprietary products and profitable consulting services during the second half of 2006. This pushed down the growth rate for this business line by 6 percent, or 4 percent in the second quarter of 2007.
REVENUES BY BUSINESS LINE
|€ millions||June 30.
|Q2 2007||Q2 2006||Change
|Maintenance||77.9||81.3||- 4||39.6||40.4||- 2|
|Professional Services||34.4||37.7||- 9||17.7||19.0||- 7|
Licensing business still driving growth Our customers continued to make investments in modernizing their IT systems in the second quarter of 2007, resulting in licensing revenues climbing a total of 39 percent (currency-adjusted: 44 percent) to €57.3 million (Q2 2006: €41.3 million).
In the webMethods business line, we increased licensing revenues from our products by 129 percent to €24.5 million (Q2 2006: €10.7 million). Licensing revenues from our ETS business line also performed well with an increase of 7 percent to €32.8 million, up from €30.6 million a year earlier.
Growth in maintenance business After having experienced good growth rates in the maintenance business in fiscal 2006, we increased revenues by another 10 percent in the second quarter of 2007 (currency-adjusted: 14 percent) to €51.4 million. In the ETS business line, reported maintenance revenues amounted to €39.6 million, slightly under the previous year's figure of €40.4 million. However, currency-adjusted maintenance revenues (i.e., operating revenues from maintenance) increased by 2 percent. In the webMethods business line, revenues from the maintenance business increased by 87 percent to €11.8 million (operating revenue: €14.4 million).
In the coming quarters, our sales activities will increasingly focus on the maintenance business, and we expect to see improvements in the second half of 2007.
Professional Services business benefits from web- Methods business line Our Professional Services business performed very well in the second quarter, with revenues climbing 28 percent to €41.7 million, up from €32.7 million a year earlier.
In the webMethods business line, we increased Professional Services revenues by 76 percent to €24.1 million in the second quarter of 2007, up from €13.7 million a year earlier. As expected the ETS business line, however, saw a decline of 7 percent in Professional Services revenues to €17.7 million (Q2 2006: €19.0 million) after the restructuring.