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  Group result  
 
 

Profitable sales structure increases earnings power
Earnings before interest and taxes (EBIT) improved to €25.6 million in the third quarter despite increased expenditure for intensifying marketing and distribution activities. This resulted in an EBIT ratio of 22.5 percent after 22.3 percent in the prior-year period. Net income increased by 12.5 percent to €17.1 million.

Earnings per share rose to €0.61 compared to €0.55 in the previous year. The current figure takes a broader base into account: An average of 28.1 million Software AG shares were in circulation in the third quarter, an increase of 0.5 million over the prior-year period.

This significant increase reflects the above-average growth of our high-margin licensing business. Additional structural improvements and continued cost discipline were additional factors in the increase in earnings per share. Software AG increased EBIT by 14 percent, net income by 18 percent, and earnings per share by 15 percent in the first nine months.

  Key earnings indicators

€ millions

Q3 2006

Q3 2005

Change
in %

YTD 2006

YTD 2005

Change
in %

EBIT

25.6

23.1

+ 11

76.8

67.5

+ 14

Financial result

+ 2.2

+ 1.5

+ 47

+ 6.4

+ 4.1

+ 56

Earnings before taxes

27.8

24.6

+ 13

83.2

71.6

+ 16

Taxes

- 10.7

- 9.4

+ 14

- 32.3

- 28.6

+ 13

Net income

17.1

15.2

+ 12.5

50.9

43.0

+ 18

Earnings per share (in euros)

0.61

0.55

+ 11

1.81

1.57

+ 15

Weighted average shares outstanding (in millions)

28.1

27.6

 

28.1

27.4

 

 
 
 
     
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  Interim Report Q3/06 (PDF)
  
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