Based on the pipeline for the fourth quarter of 2009, Software AG is expecting a seasonal increase in licensing and services in comparison to the third quarter. Taking the acquisition of IDS Scheer AG and its planning into account, we anticipate revenues of €835 to €845 million for 2009, an increase of more than 16 percent over the previous year. Originally, the forecast for the full year included a revenue increase of 4 to 8 percent with an EBIT margin between 24.5 and 25.5 percent. Following the consolidation of IDS Scheer, we expect an EBIT margin between 25 and 25.5 percent for the full year and have raised the forecast accordingly. With that, the earnings per share would show double-digit growth.
Software AG anticipates the first stimulus for growth in 2010, but then a continuing weakness in demand. If the global economy should improve over the course of the year, we expect accelerated demand, particularly for business process optimization software. This applies primarily to the private sector, while the public sector is signaling more restraint following the global recession. The extent to which Software AG’s revenues are likely to grow in 2010 cannot be quantified until customers have finished planning their budgets. Specific profit planning for the next fiscal year is also impossible before the acquisition is concluded. The conclusion of a domination agreement between Software AG and IDS Scheer AG, planned for January 2010, is especially significant, as it will allow organizational consolidation at operational levels. In any case, sales efficiency should have a positive effect on revenues and earnings.