Archive of Quarterly Reports 2010

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FY 2010: Software AG reports record results for fiscal year 2010

Software AG (Frankfurt TecDAX: SOW) recorded a significant increase in revenues in the fourth quarter of 2010. At €326.7 million, total revenues were twelve percent higher than the same quarter of the previous year (€292.1 million). The product business picked up sharply in the fourth quarter in particular, totaling €222.0 million and exceeding the figure for the same period of the previous year (€181.1 million) by 23 percent. Significant revenue increases, largely owing to an increased number of big deals and initial cross-selling successes, followed the successful integration of IDS Scheer AG and its software product portfolio. Revenue and earnings also benefited from currency translation effects, especially in the Americas.

EBIT climbed at the Group level by 19 percent to €94.1 million due to a larger share of high-margin products in total sales, the accelerated implementation of cost synergies from the merger with IDS Scheer AG and continued positive currency translation effects in the fourth quarter. These factors also contributed to a net income and earnings per share increase of 36 percent, again reaching historic peaks. The full year 2010 showed earnings growth of 25 percent, surpassing the final forecast of 19-20 percent, which had been raised several times over the course of 2010.Group operating earnings, net income, and earnings per share again reached record highs, returning two-digit growth rates. This performance is a result of the improved utilization of consulting capacities, cost synergies achieved through the merger with IDS Scheer and the positive, third quarter exchange rate effects. Software AG expects this earnings trend to continue in the fourth quarter and has therefore raised its fiscal year 2010 outlook for profit growth from the previously announced 10 to 12 percent to between 18 and 20 percent.

3Q2010: Profit Leap for Software AG in the Third Quarter

Software AG (Frankfurt TecDAX: SOW) reported significant revenue growth in all business divisions in the third quarter of 2010. Total revenue rose 29 percent (22 percent at constant currency rates) year-on-year to €275.3 million (2009: €213.6 million). In particular the services business performed well reporting higher revenue than the second quarter of 2010, contrary to normal seasonal development. The successful integration of IDS Scheer AG has resulted in this new corporate division reporting revenue growth for both products and consulting services. In addition, foreign currency rates had a positive impact on both revenue and earnings, particularly in the Americas.

Group operating earnings, net income, and earnings per share again reached record highs, returning two-digit growth rates. This performance is a result of the improved utilization of consulting capacities, cost synergies achieved through the merger with IDS Scheer and the positive, third quarter exchange rate effects. Software AG expects this earnings trend to continue in the fourth quarter and has therefore raised its fiscal year 2010 outlook for profit growth from the previously announced 10 to 12 percent to between 18 and 20 percent.

The third quarter 2010 results again confirmed Software AG’s growth strategy. The new business area, known as Business Process Excellence, encompassing innovative software products for the integration of enterprise applications and processes, continued to grow (product revenue webMethods/ARIS + 27 percent compared to the previous year) and delivered an increased earnings contribution. The objectives of the August 2009 merger with IDS Scheer, namely revenue and cost synergies, had a very positive impact on earnings for the first time in the quarter under review. The earnings contribution from the Enterprise Process Innovation (IDS Scheer) division more than tripled to €14.6 million (2009: €4.5 million).

2Q2010: Software AG increases earnings by 33 percent

Software AG (Frankfurt TecDAX: SOW) continued to show strong growth in Q2 2010 with total revenues up by 52 percent to €267.3 million. The high growth was driven by the webMethods business division with license revenue up by 31 percent and earnings more than doubled. This confirms the trend of recent quarters that the new webMethods business division is now a driver of earnings growth as well as the traditional Enterprise Transaction Systems business.
At a corporate level, operating earnings, earnings after tax and earnings per share returned double-digit growth, reaching historical record levels. The free cash flow at €36.3 million (up 22 percent) also reached a new record level. Software AG expects the increasing volume of projects in the process solutions area to continue and has confirmed its forecast for fiscal year 2010.

1Q2010: Software AG Returns Significant Growth in First Quarter 2010

Software AG (Frankfurt TecDAX: SOW) is off to a strong start in 2010, continuing on the growth path it began in 2003. First-quarter total revenue was posted at €250.3 million, a 51 percent increase year-on-year. In the same period, product revenue grew 20 percent to €146.7 million.

Free cash flow, which had been climbing progressively over the past few quarters, dynamically rose by 39 percent in the first quarter. This higher Free Cash Flow expanded the Company’s capability to further drive growth. The slight upswing in IT demand that became apparent early in the year had a positive impact on the first quarter. The Company expects an increased volume of large-scale projects in the Process Innovation division and confirms its outlook for the fiscal year.

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