Licensing business shows robust growth
Our licensing business is continuing its positive growth trend. Licensing revenue rose by 7 percent in Q2 2008 (currency adjusted: 15 percent) to €61.4 million (Q2 2007: €57.3 million).
Licensing revenue in the webMethods division was €26.6 million in Q2 2008, compared to €24.5 million in Q2 2007, corresponding to a 19 percent increase following currency adjustment. In the ETS division, licensing revenue rose by 11 percent following currency adjustment, to €34.7 million (Q2 2007: €32.8 million).
Maintenance business continues encouraging trend
The maintenance business once again made a high overall contribution in Q2 2008: Revenue grew by 20 percent (currency adjusted: 30 percent) to €61.8 million (Q2 2007: €51.4 million).
In the webMethods division, maintenance revenue improved both organically and through acquisitions to €22.5 million (Q2 2007: €11.8 million), which translates into a growth rate of almost 91 percent, or 108 percent following currency adjustment. The ongoing growth in the ETS division is a particular source of satisfaction. Growth in Q2 2008 was 6 percent (currency-adjusted), reaching €39.3 million in revenue (Q2 2007: €39.6 million).
Service business has room for improvement
Professional Services increased its revenue in Q2 2008 by 7 percent to €44.8 million, compared to €41.7 million in Q2 2007.
The service business in the webMethods division grew from €24.1 million to €27.6 million (+14 percent). The lower increase in revenue compared to the product business can be attributed primarily to lower licensing revenue in the previous quarters; these licensing revenues form the basis for subsequent service business. With revenue of €17.3 million, the ETS division maintained the high level of its service business (Q2 2007: €17.7 million).
EBIT once again at record levels
EBITA grew by 17 percent to €44.4 million in Q2 2008 (Q2 2007: €37.9 million). EBIT grew from €36.7 million in Q2 2007 to €40.9 million, an increase of 11 percent. The EBIT margin amounted to 24.3 percent, compared to 24.1 percent in Q2 2007.
At €18.5 million, research and development expenses in Q2 2008 significantly exceeded expenses of €14.8 million in Q2 2007. This 25-percent increase can be attributed primarily to the consolidation of the acquired company webMethods, Inc. Marketing and sales expenses increased slightly by 7 percent to €39.8 million (Q2 2007: €37.2 million) for the same reason.
KEY EARNIINGS INDICATORS
|in € million||
|January 1 -
June 30, 2008
|January 1 -
June 30, 2007
|Financial income/expense, net||-1.4||1.3||-2.9||4.4|
|Earnings before taxes||39.5||37.9||4.2||74.1||66.1||12.1|
|Earnings per share in Euro (basic)||0.95||0.86||10.5||1.74||1.49||16.8|