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.
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
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.