A stable start to fiscal year 2009 for Software AG, U.S. contributes largest deal
- U.S. accounts for 28% of total company revenue in first-quarter performance for 2009
- U.S. contributed positively year over year to maintenance revenue performance
- Consolidated revenue up 4 percent to €165.3 million
Reston, VA, U.S., 4/24/2009
Software AG’s (Frankfurt TecDAX: SOW) first-quarter performance for 2009 was stable despite the global economic recession. The company’s consolidated revenue (unaudited IFRS) was €165.3 million (2008: €159.4 million), representing growth of 4 percent. Margin-enhancing product revenue totaled €122.5 million (2008: €114.8 million), a 7 percent increase. Operating results (EBIT) rose 6 percent to total €38.1 million (2008: €36.0 million). Net income also grew, reaching €25.6 million (2008: €22.5 million). This represents a 14 percent rise. Based on its performance to date, Software AG reconfirms its outlook for the 2009 fiscal year and still expects 4 to 8 percent revenue growth year on year.
In spite of the on-going economic recession, Software AG concluded a satisfactory first quarter 2009, performing well in spite of the difficult market climate. “Our continued focus on our business strategy, our team and our customers helps us weather the storm during these volatile times,” said Dean Mericka, President of Sales, Software AG.
In North America, during Q1 2009, Software AG closed one of the largest multi-year contracts with a major player in the financial services industry to help them increase productivity, slash time-to-market for new products, and grow its customer base. This is one example of how Software AG is helping its customers counter the recession.
“We are delighted when customers recognize the strategic business value our products can bring, particularly during a time when IT investments are heavily scrutinized,” said Mark Edwards, Chief Operating Officer and Executive Board member, Software AG. “Software AG has a long history and proven track record of providing innovative solutions that enable corporations to continuously improve their operations.”
“While customers are becoming more discriminating as to what they spend their money on, we are helping them to calculate their return on investments in our products and services thereby reducing their costs and increasing efficiency,” added Mericka.
∆ in %
|IFRS financial statements (unaudited, stated)|
- Product revenue
- Service revenue
ETS business division
webMethods business division
Free cash flow
* Growth into comparison to 2008 at constant currency rates
Software AG | 11700 Plaza America Drive| Suite 700 | Reston, VA 20190 | USA
With more than 1,000 U.S.-enterprise customers and 700 employees, Software AG's U.S. operation contributes one third of the company's total revenue and is Software AG's largest market presence and R&D location. Software AG has operated nationwide in the U.S. since 1973 through a fully-owned subsidiary, Software AG USA Inc., which is headquartered in Reston, Virginia – also an R&D hub for the company’s core data management and integration technologies. R&D labs for the development of Software AG’s webMethods product suite – offering SOA integration and BPM solutions – include facilities in San José/Silicon Valley, Seattle and Denver. For more information, visit www.softwareag.com/us.
Software AG is the world’s largest independent provider of Business Infrastructure Software. Our 4,000 global enterprise customers achieve business results faster by modernizing, integrating and automating their IT systems and processes. As a result, they rapidly build measurable business value and meet changing business demands. Based on our solutions, organizations are able to liberate and govern their data, systems, applications, processes and services – achieving new levels of business flexibility.
Our leading product portfolio includes solutions for high performance data management, developing and modernizing applications, enabling service-oriented architecture, and improving business processes. By combining our technology with industry expertise and best practices experience, our customers improve and differentiate their businesses – faster.
Software AG has almost 40 years of global IT experience and over 3,600 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW). Software AG posted total revenues of €721 million in 2008.
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