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SAW QB1 2014, englisch

InterimManagementReport Product revenue from BPE and ETS solutions (license and maintenance sales) reached €146.2  million (2013: €154.6 million), which is a 5-percent drop year on year. At constant currency, this figure is level with last year. BPE revenue accounted for almost two-thirds (2013: 58 percent) of ­Software AG’s total product revenue. This resulted in an improved revenue mix in favor of the high-growth future-­ oriented BPE segment. License revenue from BPE and ETS products was down 10 percent, or 4 percent at constant currency, to €57.0 mil- lion (2013: €63.0 million). Global maintenance revenue for these products fell to €89.2 million (2013: €91.6 million), which reflects a 3-percent decrease or, at constant currency, a 3-percent gain. Exchange rate effects Exchange rates had a very negative effect on Software AG’s revenue in the first quarter of 2014. Because the euro was high against all relevant currencies, exchange rate fluctua- tions reduced Group revenue by €9.7 million year on year. All three business lines were affected, though maintenance suffered the biggest squeeze with a loss of €4.9 million. The effects on license and consulting revenue were − €3.7 million and − €1.1 million respectively. The contribution of the euro zone to revenue in the quarter under review rose to 43 per- cent (2013: 36 percent). The U.S. dollar (USD) accounted for the largest percentage in foreign currency with 21 percent (2013: 21 percent). Earnings performance In the first quarter of the current fiscal year, Software AG reduced its Group-wide cost of sales by 10  percent to €68.0 million (2013: €75.8 million). This was primarily due to consolidation measures in the Consulting segment. The reduction in consulting sales in combination with the positive revenue trend in licenses and maintenance continued to have a positive impact on the company’s revenue mix: The company’s gross margin grew from the previous year’s high 66.3 percent to 67.4 percent in the quarter under review. Research and development expenses rose slightly due to the consolidation of acquired companies during the previous year totaling €27.2 million (2013: €26.2 million) in the three- month period. Software AG’s general and administrative expenses went up 7  percent to €19.1  million (2013: €17.8 million). Expenses for sales and marketing totaled €69.4 million (2013: €72.8 million). Earnings before interest and taxes (EBIT) were €30.5 million (2013: €41.6 million). This reflects a 27-percent decline as compared to the same quarter last year, which did however contained a high vol- ume of one-time revenues. Software AG’s EBIT margin was 14.6 percent (2013: 18.5 percent) in the first quarter of 2014. In order to improve the basis of comparison between ­Software AG and those competitors which do not use the IFRS accounting standard—especially those in the USA—­ Software AG is additionally reporting operating (non-IFRS) income. This figure is calculated based on EBIT (before all taxes) adjusted for: • Amortization of acquisition-related intangible assets • Reduction of acquisition-related product revenue through purchase price allocation • Other acquisition-related effects on earnings • Share price-based remuneration • Restructuring/severance payments 7 Interim Management Report Interim Financial Statements Notes to the Interim Financial Statements Additional Information Significant Events During the Reporting Period Financial Performance Financial Position Assets Events After the Balance Sheet Date Risks and Opportunities Outlook