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Group revenues increased to €157.8 million (Q3 2006: €113.8 million) in the third quarter of 2007, up 39 percent from the previous year. This increase resulted primarily from organic growth and the acquisition of webMethods, Inc. Excluding the IFRS adjustment for the initial consolidation of webMethods, Group operating revenue came to €162.4 million. Currency-adjusted, the increase over the previous year was 48 percent.
Product revenues (licenses and maintenance) increased by 35 percent to €115.1 million (Q3 2006: €85.0 million). Adjusted for currency and first-time consolidation effects, the growth even amounted to 47 percent.
The licensing revenues, included in product revenues, performed especially well, climbing 55 percent (adjusted: 62 percent) to €57.4 million (adjusted: €57.8 million). In 2006 licensing revenues came to €37.0 million.
Software AG’s Professional Services business division generated revenues of €42.3 million, 50 percent (adjusted: 53 percent) more than in 2006 (€28.2 million).
Significant increase for webMethods Revenues of the webMethods business division rose in the third quarter by 136 percent (adjusted: 161 percent) to €69.9 million. Revenues in the prior-year quarter amounted to €26.9 million. The major share of the growth resulted from the acquisition of webMethods, Inc., which was fully consolidated in this quarter for the first time. The webMethods business division contributed 44 percent to Group revenues.
ETS results again encouraging Revenue from the ETS business division amounted to €87.9 million in the third quarter, thus slightly exceeding the prior-year level (Q3 2006: €84.2 million). The development was characterized by growing licensing and service revenues while the maintenance revenues were even significantly weaker. Maintenance revenues are not expected to grow until 2008.
Overall, the ETS business division contributed 56 percent to total revenues.
REVENUES BY BUSINESS LINE
|€ millions||Sept. 30, 07||Sept. 30, 06||Change
|Q3 2007||Q3 2006||Change
Licensing business continues to boom Our customers’ high demand continued unabated in the third quarter. This led to another significant increase in licensing revenues to €57.4 million, up from €37.0 million in the third quarter of 2006. The rate of increase was therefore 55 percent, adjusted 62 percent.
Licensing revenues in the webMethods business division came to €26.0 million, up 163 percent (adjusted: 176 percent) from 2006. Licensing revenues in the ETS business division grew by 16 percent (adjusted: 21 percent) to €31.4 million.
Continued growth in maintenance business The acquisition of SPL and webMethods caused the maintenance business to grow by 20 percent (adjusted: 34 percent) to €57.7 million in the third quarter.
In the webMethods business division, maintenance revenues were increased significantly by 202 percent (adjusted: 286 percent) to €19.3 million (Q3 2006: €6.4 million). Maintenance revenues in the ETS business division declined by 8 percent (adjusted 4%) to €38.5 million (Q3 2006: €41.6 million), therefore keeping the division from repeating its 2006 figure.
Professional Services business benefits from webMethods business division Our Professional Services business division increased its revenues by 50 percent (adjusted: 53 percent) to €42.3 million (Q3 2006: €28.2 million), therefore contributing to the company’s success in addition to ETS and webMethods.
In the webMethods business division, we increased Professional Services revenues by 88 percent (adjusted: 90 percent) to €24.4 million in the third quarter of 2007, up from €13 million a year earlier. Professional Services revenues in the ETS business division grew by 17 percent (adjusted: 19 percent) to €17.9 million (Q3 2006: €15.3 million). According to plan, our Professional Services business is again reporting increasing revenues in the second half of 2007 after the restructuring completed in 2006.