Other disclosures
7_Contingent liabilities
| in € thousands | Mar. 31, 2009 | Dec. 31, 2008 | Mar. 31, 2008 |
| Guarantees | 1,223 | 1,311 | 1,312 |
| Other | 1,581 | 1,252 | 1,333 |
| 2,804 | 2,563 | 2,645 |
The carrying amount of collateral received is €521 thousand (Q1 2008: €521 thousand).
Other financial commitments
The Company has entered into rent and lease agreements for buildings, land, computer and telephone equipment, and vehicles. The obligations under these agreements for their remaining non-cancelable terms up until the end of fiscal 2009 amount to €9,470 thousand (Q1 2008: €7,506 thousand). Obligations of €37,931 thousand exist for the period up until the end of fiscal year 2014 (Q1 2008: a total of €40,915 thousand until the end of fiscal 2013), and obligations of €9,547 thousand for the period after fiscal 2014 (Q1 2008: a total of €6,130 thousand for the period after fiscal 2013). The lease agreements are operating leases as defined in IAS 17.
8_Seasonal influences
Revenues and pre-tax earnings per quarter were as follows in fiscal 2008:
| in € thousands/in % | Q1 2008 | Q2 2008 | Q3 2008 | Q4 2008 | 2008 |
| Total revenue | 159,391 | 168,767 | 180,047 | 212,405 | 720,610 |
| in % of annual revenue | 22.1 | 23.1 | 25.0 | 29.5 | 100.0 |
| Earnings before taxes | 34,562 | 39,518 | 47,090 | 54,256 | 175,426 |
| in % of net income for the year | 19.7 | 22.5 | 26.9 | 30.9 | 100.0 |
Revenues and earnings before taxes for the third and fourth quarters were positively influenced by the expansion of the business in Brazil; thus, the quarterly breakdown of revenues and earnings before taxes has only limited informational value.
9_Litigation
In connection with the lawsuit by a small Canadian software company, mediation talks were held which led to an approximation of the parties’ positions. There were no other changes with respect to the legal disputes reported at the end of 2008, nor were there any new legal disputes that could potentially have a significant effect on the financial position, financial performance, or cash flows.
10_Stock option plans and stock appreciation rights program
Software AG has two different stock option plans for members of the Executive Board, upper management, and employees of the Group. Our share-based compensation programs are described in detail on pages 103 – 106 of our 2008 Annual Report.
The expense for stock options that were accounted for in accordance with IFRS 2 as equity-settled stock option programs amounts to €579 thousand (Q1 2008: €309 thousand).
The expense for stock options that were accounted for in accordance with IFRS 2 as cash-settled stock option programs amounts to €2,094 thousand (Q1 2008: €1,782 thousand).
The number of outstanding stock options has changed as follows since Dec. 31, 2008:
| in € thousands | Balance as
of Dec. 31, 2008 | Granted | Exercised | Forfeited | Balance as
| Thereof
|
Stock option program | 77,707 | 0 | -30,697 | 0 | 47,010 | 23,242 |
Stock-price based remuneration plan from 2007 | 1,919,000 | 199,000 | 0 | -152,500 | 1,965,500 | 0 |
Of the options outstanding on March 31, 2009, from the 2007 stock price-based remuneration program, 1,100,000 options were accounted for in accordance with the provisions of IFRS 2 as cash-settled stock option programs.
11_Employees
As of March 31, 2009, the effective number of employees (i.e., part-time employees are taken into account on a pro-rata basis only) amounted to 3,640 (March 31, 2008: 3,426), 76.6 percent of whom were employed abroad (March 31, 2008: 77.9 percent). In absolute terms (i.e., parttime employees are taken fully into account), the Group employed 3,720 people (March 31, 2008: 3,576) at the end of the first quarter on March 31, 2009.
12_Changes and information regarding corporate bodies
Supervisory Board
Frank F. Beelitz, who had been a member of the Supervisory Board since January 1, 2000, having been elected by the Annual Shareholders’ Meeting, stepped down from his position on the Board as of the end of the Annual Shareholders’ Meeting held on April 30, 2009. Heinz Otto Geidt, domiciled in Kelkheim, Germany and Director of Asset Management at the Software AG Foundation, was elected to the Supervisory Board as a new member by the Annual Shareholders’ Meeting on April 30, 2009.
Executive Board
Holger Friedrich left the Company on March 13, 2009.
As of March 13, 2009, Ivo Totev was appointed as member of the Executive Board and took over global responsibility for the area of Professional Services.
Date of release of the consolidated interim financial statements
Software AG's Executive Board approved the quarterly consolidated financial statements on April 30, 2009.
