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Other disclosures

7_Contingent liabilities

in € thousandsMar. 31, 2009Dec. 31, 2008Mar. 31, 2008
Guarantees1,2231,3111,312
Other1,5811,2521,333
2,8042,5632,645

 

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 revenue159,391168,767180,047212,405720,610
in % of annual revenue22.123.125.029.5100.0
Earnings before taxes34,56239,51847,09054,256175,426
in % of net income for the year19.722.526.930.9100.0

 

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 € thousandsBalance as
of Dec. 31,
2008

Granted

Exercised

Forfeited

Balance as
of Sep. 31,
2009

Thereof
exercisable
as of Mar. 31, 2009

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.