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SAW QB1 2014, englisch

Operating (non-IFRS) income was €43.0 million (2013: €48.9 million); accordingly the operating (non-IFRS) margin was 21 percent (2013: 22 percent). Software AG’s tax rate was stable at 32.6 percent (2013: 32.5 percent). Net income decreased to €18.6 million (2013: €27.2 million). Earnings per share were therefore €0.23 (2013: €0.32) in the quarter under review. Revenue and earnings by business line (segment report) Software AG’s total revenue in the first quarter of 2014 was €208.9 million and can be broken down by business line as follows: • BPE accounted for 46 percent (2013: 40 percent) of total Group revenue in the quarter under review. • ETS generated 24 percent (2013: 29 percent) of total revenue. • Consulting contributed 30 percent (2013: 31 percent) to total revenue. This changed revenue mix illustrates the positive trend ­toward a profitable product business in the high-growth BPE line. This development also confirms the success of ­Software  AG’s strategic focus on the future-oriented ­integration and process software markets as well as big data solutions. Business Process Excellence (BPE) Software AG was able to continue the strong performance in its largest business line, BPE, in the first quarter of 2014 with growth of 11 percent (at constant currency) and rev- enue of €95.3 million (2013: €90.3 million). This result ­indicates that the company again clearly outperformed its competitors in the quarter under review. The dynamic ­development verifies the impact of strategic growth mea- sures—including the consistent expansion of sales and new products in key future markets—which were introduced last year. The double-digit BPE growth is a result of the com­ pany’s transformation strategy. Customers are increasingly investing in innovative software to fuel the digitization of their businesses with new process management and inte- gration solutions. Within BPE product revenue, licenses were up to €43.7 mil- lion (2013: €41.9 million), which is 10-percent growth (at constant currency). Maintenance revenue increased 11 per- cent (at constant currency) to €51.6 million (2013: €48.4 mil- lion) in Q1 2014. The positive results illustrate the impact of the strategic BPE measures initiated in specific markets and the amplified investments in sales and marketing. Sales and marketing expenses rose to €49.1 million (2013: €46.0 million) due to Software AG’s strategic growth initia- tives. Research and development expenses were raised by 6 percent to €20.9 million. The cost of sales was about equal to last year at €5.7 million. The segment earnings for the high-growth BPE business line increased 6 percent from €18.8 million to €19.6 million. Enterprise Transaction Systems (ETS) The traditional ETS database business includes revenue from licenses, maintenance and services for the Adabas and ­Natural product families. On target with expectations, the business line generated €51.1 million (2013: €64.5 million) in revenue in the quarter under review. Fewer ETS deals were closed in the first quarter of 2014 because more ETS software licenses than expected had been sold in the fourth quarter of 2013. As a result, license sales were down to 8 Software AG | Interim Report 1 | 2014