We believe our decision to concentrate on two core
business lines will generate sufficient revenues
to offset the withdrawal from non-strategic areas.
XML license sales are expected to pick up in the
second half of the year, particularly as a result of
the launch of our XML Integration Packages in
the second quarter. Moreover, the Project Services
division is expected to benefit from increasing
revenues from integration work.
At the same time, we will continue to reduce
operating costs, partly as a result of the ongoing
consolidation of R&D activities. Improvements in
operating margin, additional cost savings, and
healthy cash flows will further strengthen Software
AG’s finances. Against this background, we expect
full-year operating profit to exceed the 2003 figure
by around 25 percent.