Positive expectations for 2006 as a whole
Software AG continues to anticipate a rise in Group sales by 10 percent for the current fiscal
year on a currency-adjusted basis. For the crossvision business line, we are still forecasting
an annual increase of 20 to 25 percent. For ETS, we now believe that an increase of 8 to
10 percent is likely (previously 6 to 8 percent).
From a current perspective, we expect revenue from professional services to increase by
2 to 4 percent (previous forecast: 5 to 8 percent), and revenue from maintenance to rise by
4 to 5 percent (previously 2 to 4 percent). Licensing will remain the primary growth driver,
with revenue growth expected to total 25 to 27 percent (previously 22 to 25 percent).
We still anticipate a Group operating margin of between 22 and 23 percent of total sales.
Licensing will continue to drive growth in 2007
An increase in Group sales of approximately 10 percent is also targeted for fiscal 2007, with
software products expected to make up a greater portion of revenue. We also anticipate that
the EBIT ratio will continue improving toward the medium-term goal of 25 percent with a
rise of approximately 1 percentage point. Increased proliferation of the crossvision SOA Suite
is expected to contribute to a higher EBIT ratio.