Archive of Quarterly Reports 2012

Quarterly and Full Year Results

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Software AG 2012: Largest Business Line (BPE) outperforms market with 15.5 percent license revenue growth

Software AG (Frankfurt TecDAX: SOW) today released its financial results (IFRS, preliminary) for fiscal year 2012. The company reported €1.05 billion (2011: €1.1 billion) in total group revenue thereby achieving its target for the year. Product revenue (licenses and maintenance) increased 5.7 percent to reach €712.2 million (2011: €673.9 million) in the period under review. Software AG implemented a number of operational and strategic measures in 2012 to set the course for further growth, including intensifying investments by €40 million in sales as well as research and development for the high-growth Business Process Excellence (BPE) division. The implemented growth-generating initiatives began bearing the first fruits during the year.

The largest business line achieved a dynamic 15.5 percent growth in license sales. At the same time, the high-margin Enterprise Transaction Systems (ETS) business line developed more solidly than had been projected at the start of 2012. Group EBIT was €248.3 million (2011: €269.2 million) due to targeted investment expenses and lower revenue in the IDS Scheer Consulting (IDSC) line. The company's EBIT margin climbed steadily over the course of the year from 21.5 to 27.2 percent due to better-than-expected ETS performance, continuously increasing BPE license revenues and effective cost management. Software AG plans to make more dedicated investments in the high-growth BPE business and thus lay the foundation for further dynamic growth.

3Q2012: Software AG outperforms the market with new products in Q3, 2012

Software AG (Frankfurt TecDAX: SOW) today announced its financial results (IFRS, preliminary) for the third quarter of 2012. The company had pre-announced its key figures on October 12, 2012, which exceeded market expectations for revenue from new product sales in the Business Process Excellence (BPE) business line.

Software AG posted BPE product revenue growth (licenses and maintenance) of around 15 percent at €96.7 million (Q3 2011: €84.2 million). The company’s BPE license revenue increased around 20 percent to €50.0 million (Q3 2011: €41.7 million). The high-margin Enterprise Transaction Systems (ETS) business line, the company’s traditional database business, demonstrated stability in the quarter under review, remaining about on par with Q3 2012 at €93.8 million (Q3 2011: €95.1 million). Due to the realignment of the company's consulting business, reported total revenue dropped to €257.4 million (Q3 2011: €274.6 million).

Targeted increased investments in new products and markets had an impact on operating income (EBIT in accordance with IFRS). At €61.1 million, EBIT was down from last year (Q3 2011: €72.0 million) — which had been positively influenced by non-recurring items — but up from a strong second quarter (Q2 2012: €57.1 million). The EBIT margin was 23.7 percent (Q3 2011: 26.2 percent), which reflects an increase over the course of the year (Q1 2012: 21.5 percent and Q2 2012: 22.1 percent). An equity ratio of 59 percent and net cash of €10.5 million was reported as of September 30, 2012.

2Q2012: Software AG Announces Strong License Growth in the Second Quarter

Software AG (Frankfurt TecDAX: SOW) today announced  significantly increased customer demand for its Business Process Excellence (BPE) products with license revenue up by 46 percent to €45.6 million in the second quarter of 2012 (2011: €31.3 million). The company’s Enterprise Transaction Systems (ETS) business line reported license revenue growth of 20 percent to €30.1 million (2011:  €25.1 million). With ETS maintenance stable at €47.6 million and BPE maintenance significantly up to €48.1 million, Software AG is reporting a total product revenue increase of 16 percent to €175.5 million (2011:  €151.5 million). Software AG also reported total revenue of €258.6 million (2011: €257.1 million).

First half of 2012
Product revenue for the first six months also grew, by 7 percent to €337.1 million (2011: €315.8 million). Revenues from the services business during the reporting period were €175.4 million (2011: €211.1 million). Group revenue amounted to €513.2 million (2011: €529.7 million) during the first six months of the current fiscal year.

The EBIT in the first half of 2012, reflecting increased investments in BPE business development, was €111.9 million (2011: €119.1 million). The EBIT margin was 21.8 percent compared to 22.5 in 2011. Net income was €73.3 million (2011: €78.7 million). Cash and cash equivalents increased by €53.5 million to €270.0 million, and the equity ratio climbed to 58 percent (2011: 49 percent).

1Q2012: Software AG’s first quarter financial results confirm expectations

Software AG reported record first quarter Business Process Excellence (BPE) revenue of €124.3 million (€123.9 million in 2011). This growth was primarily driven by very strong performances in Europe and the introduction of new products.

Enterprise Transaction Systems (ETS), performed better than expected, with total revenue of €94.4 million. The company’s software product business (license and maintenance) reported total revenue of €161.5 million close to the outstanding performance of Q1, 2011. Total maintenance revenue reached an all time high for a quarter of €96.3 million. Despite higher spending on R&D, Sales and Marketing, the EBIT margin reached 21.5% and free cash flow was increased by 20%.

The company confirmed its guidance for the full year 2012, published in January of this year..  
     

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