The benchmark indices, the TecDax and NASDAQ Composite, performed at the same level or slightly better than the Software AG share price. Software AG stock lost 19.5 percent of its value in the first quarter, while the TecDax declined by 18.5 percent.
The trend of the second half of 2007 continued in the first quarter of 2008. Due to macroeconomic uncertainties such as the U.S. mortgage crisis and its effects on the financial sector many investors shifted their portfolios away from small and midsize companies and into the large caps. Further profit-taking also occurred. All of these factors led to a downward trend in share prices during the first months of the new fiscal year.
The starting price of €60.37 per share was the highest price in the first quarter. Our stock reached its low point for the quarter at €43.12 per share on January 23, prior to the announcement of our financial figures for 2007. However, with the announcement of our figures on January 24 and the accompanying good forecast for 2008, Software AG stock once again enjoyed a significant upward movement, and remained relatively constant in the following weeks at a price of around €50, plus or minus 10 percent. The stock closed on March 31 at €48.60 per share.
The publication of results from the first quarter on April 22, 2008 led to another decline in share price to €44.75 as investors had expected higher licensing growth in the webMethods Business Division.
A total of 24 analysts in Germany, the United Kingdom, and France cover Software AG’s stock as previously. The majority of these analysts see high potential for the stock currently, and have therefore rated Software AG stock as a “Buy” in 18 studies.
We also had an ongoing dialogue with investors and analysts in the first quarter of 2008. Our activities included visits to five capital market conferences as well as a number of road-shows in 12 cities in Germany, USA/Canada, France, and United Kingdom. Here we participated for the first time in a “speed investing” conference in the USA and Canada, where we presented our business strategy to new investors in twenty-minute segments. We also received positive feedback from our road-show in Paris, where the company presentations were made in French.
CeBIT was a very successful event for Software AG from an IR perspective: We participated in the Deutsche Börse and WestLB conferences, and held intensive discussions with some 30 analysts and investors. Visitors to CeBIT were particularly interested in the presentation of our technologies.
Share Price Development (indexed)