Significant increase in cash flow
Operating cash flow was €36.2 million during the first quarter (Q1 2007: €23.3 million), and thus improved even more than earnings (55 percent increase). Free cash flow was €34.0 million (Q1 2007: €22.2 million). This represents a 21 percent share of Group revenues.
Increase in total assets and capital expenditure
Total assets of the Software AG Group rose from €684.0 million (March 31, 2007) to €1,000.1 million (March 31, 2008). Cash and cash equivalents decreased from €211.2 million to €64.8 million due to the acquisitions. The equity-to-assets ratio decreased accordingly from 65 percent at the end of the quarter in 2007 to 45 percent on the 2008 balance sheet date. Equity increased to €454.8 million (March 31, 2007: €444.9 million). Current and non-current liabilities both increased significantly over the previous quarter due to the acquisition of webMethods, Inc. and the associated financing. Particularly worth noting here is the significant increase in prepaid expenses, which involve previously contracted future maintenance revenues.