Substantial increases in licensing business

The high-margin software licensing business registered the highest rise of all sales segments with growth of 26 percent (currency-adjusted: 28 percent) and generated revenues of €165.7 million (prior year: €131.6 million). The proportion of licensing sales to Group sales rose to over 34 percent (prior year: 30 percent). Software AG will benefit from this positive trend in the future, as maintenance revenues and, to a certain extent, service revenues generally follow sales of licenses. Both business lines contributed to the strong growth in the licensing business.

Stable proceeds from the maintenance business

Maintenance revenues rose to €187.3 million in 2006, up 3 percent (currency-adjusted: 4 percent) from the previous years figure of €181.4 million. We service a broad, global customer base with our maintenance business, ensuring reliable revenue contributions. A total of 95 percent of maintenance revenues recur annually.

Professional Services focus on Software AG products

Revenues from Professional Services showed a modest rise of 3 percent to €126.2 million (prior year: €122.7 million) due to the strategic focus on our own products. In addition, our Crossvision Suite enables higher productivity when implementing integration solutions and therefore requires fewer service hours.

Sales by revenue type
Fiscal year 2006 in € million	2006	2005	Change in %	Change in % at constant currency
Product	353.0	313.0	+ 13	+ 14
License	165.7	131.6	+ 26	+ 28
Maintenance	187.3	181.4	+ 3	+ 4
Service	126.2	122.7	+ 3	+ 3
Other	3.8	2.3
Total	483.0	438.0	+ 10 %	+ 11 %