Software AG
Software AG: DELAYS IN LARGE-DEAL PROJECTS SLOWS LICENSE GROWTH – TARGET OPERATING MARGIN BETWEEN 26 AND 28 PERCENT
Software AG / Key word(s): Preliminary Results/Change in Forecast Ad-hoc release according to § 15 WpHG [Note: All figures are provisional and rounded and may possibly still change. Darmstadt, July 14, 2014 – After an initial consolidation, Software AG (Frankfurt TecDAX: SOW) announced preliminary financial results for the second quarter of 2014. While sales in the ETS business developed as expected, the BPE business line was marked by a surprising reluctance by customers to commit to major infrastructure projects. Accordingly the annual forecast has been adjusted. The Business Process Excellence (BPE) division had revenues of EUR85 million (previous year: EUR91.4 million) in the second quarter. License revenue with EUR33 million (previous year: EUR42.8 million) was under the previous year’s level. Maintenance revenue, however, rose in the second quarter to EUR52 million (previous year: EUR48.6 million), an operating growth by 11 percent. The traditional database business Enterprise Transaction Systems (ETS) was in line with expectations, with sales of EUR56 million (previous year: EUR75.8 million). License revenue amounted to EUR17 million (previous year: EUR32.6 million). ETS maintenance revenue was around EUR38 million euros (previous year: EUR43.1 million). The Consulting division reported revenues of around EUR56 million (previous year: EUR70.5 million). The main reason was the deconsolidation of the SAP service activities. After the sale of the business focused on third-party solutions, Software AG will concentrate exclusively on the development, distribution and service of its own products. The operating profit (non-IFRS) decreased in the second quarter to EUR45 million (previous year: EUR58.7 million); this corresponds to an operating margin of 23 percent. The reported EBIT (IFRS) was impacted by one-off effects from the deconsolidation of the SAP consulting business and is approximately EUR25 million (previous year: EUR44.4 million). Outlook Software AG will give further details in a conference call on July 15, 2014 at 09:00 clock CET. Dial-in details are as follows: Germany +49 (0) 69 566 036 000 | UK +44 (0) 203 059 5869 | USA +1 (1) 631 302 6547. The company will publish its full quarterly results on 24 July 2014. ### About Software AG Software AG – GetThereFaster Detailed press information about Software AG including a picture and multimedia database are available at: www.softwareag.com/press Follow us on Twitter / Software AG Germany | Software AG USA
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Language: | English | |
Company: | Software AG | |
Uhlandstraße 12 | ||
64297 Darmstadt | ||
Germany | ||
Phone: | +49 (0)6151 92-1900 | |
Fax: | +49 (0)6151 92-34 1899 | |
E-mail: | Investor.Relations@softwareag.com | |
Internet: | www.softwareag.com | |
ISIN: | DE0003304002 | |
WKN: | 330400 | |
Indices: | TecDAX | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart | |
End of News | DGAP News-Service |
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