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  Key Figures
  Foreword by the
Executive Board
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  Business development
in Q2 2006
  Business development
in H1 2006
  Group sales
  Group result
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Promising perspectives for 2006
We will continue our geographic expansion with a focus on Latin America and above all the Middle East and Japan. In Japan, the exclusive contract with our sales partner will expire in the fourth quarter of 2006, from which time onwards we will support our customers directly. This will enable us to leverage new growth potentials.

We will also continue pursuing our strategy of using acquisitions as a means of improving our market position. Assuming sustained organic growth, acquisitions are used for the purpose of enhancing our technology portfolio or positioning ourselves in the market as a one-stop solution provider. Acquisitions must therefore accelerate the growth of Software AG’s core business.

Alliances with partners are also an essential part of our growth strategy. We will thus continue to build on our successes with other technology partners such as Fujitsu, IDS Scheer and ILOG and cooperate with system integrators at project and local levels. The recently established CentraSite Community will also help spread Software AG’s technology.

For 2006 as a whole, we continue to expect currency-adjusted sales growth of 10 percent. Licensing revenues will continue to grow at an above-average rate. For the year as a whole, we anticipate sales growth between 22 and 25 percent. We had initially projected growth within a range of 18 and 20 percent. For the maintenance business, we now expect growth rates between 2 and 4 percent based on recent developments. Originally, we had forecasted a flat sales trend for this business segment.

Sales in the professional services segment is expected to grow between 5 and 8 percent compared to our initial assumption between 12 and 15 percent. Amongst other things, our focus on strategic projects and the introduction of flexible use of resources (“resource balancing”) should lead to improving margins and thus lay the foundation for qualitative growth in this area.

With regard to our business divisions, the Enterprise Transaction Systems (ETS) business line is expected to grow by 6 to 8 percent. In the crossvision business line, all products are now available. We will also benefit from our highly qualified sales force. Against this backdrop, we expect revenues from the crossvision business line to increase by 20 to 25 percent.

As for the income, we are raising our guidance for 2006 and now expect an operating EBIT margin between 22 and 23 percent.

  Interim Report Q2/06 (PDF)
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