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  Key figures
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  Development of revenues  

License sales increase in both business lines
New software license sales increased by 23 percent to € 29.4 million (€ 24.0 million in Q2 2003). This was largely attributable to the Enterprise Transaction Systems business line, which after a strong first quarter, contributed € 21.5 million (€ 17.7 million in Q2 2003) between April and June. This line focuses on the modernization of mainframe systems. It profited from our Customer First program, which aims to intensify dialog between Software AG and its customers. Our new Enterprise Transaction Systems packages also spurred demand.

In spite of the general reluctance of companies to invest in new technologies, our XML Business Integration business line achieved a 2 percent gain in license sales to €4.6 million.

Breakdown of license sales by product line

We generated € 46.8 million (€ 48.0 million) from maintenance during the period. Adjusted for currency translation effects, this figure is practically unchanged over the previous year. Combined revenues from licensing and maintenance rose to € 76.2 million (€ 72.0 million).

Increased demand for services
Project services also posted a notable increase in revenues during the second quarter, up 6 percent over the first quarter to € 29.6 million (€ 30.7 million). Three of our four regions increased sales in this area. Only in Central and Eastern Europe did the figure fall slightly. This was once again largely a result of price pressure and excess capacity on the German market.

Breakdown of revenues by region

Strong licensing figures across the regions
License revenues increased in three of Software AG’s business regions compared to Q2, 2003: Northern Europe/Asia posted a 57% increase, Central and Eastern Europe a 54% increase and Southern and Western Europe a 23% increase. These three regions all built on significant gains posted for the first three months of the year. The Americas region reported license revenues down by € 0.5 million at constant currency rates.

  Interim Report Q2/04 (PDF)
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