Turnover of Software AG flew up for 51%

In the second quarter 2010 the Software AG company showed steadily high growth: the total value of revenue increased by 52% and was 267.3 million euros. The significant contribution to this success was made by division of webMethods: sales proceeds of licenses of this packet increased by 31%, and profit grew more than twice. Thus, the trend of several last quarters when revenue growth, along with the traditional direction of corporate systems of transaction processing (ETS), provides division of webMethods remains. The Software AG group reached record two-digit growth rates on such indicators as operating income, a post-tax profit and net profit counting on an action. Also record was a cash free flow of means which made 36.3 million euros (increased by 22%). Software AG expects the further growth of number of projects in the field of process solutions and confirms the forecasts for 2010 financial year.

Results of activity in the second quarter convincingly demonstrate 2010 efficiency of corporate strategy of growth of Software AG. The division of webMethods offering the innovation to software for integration of business applications and processes continues to show dynamic growth. Growth rates of this division doubled in comparison with the last quarter, having been 18%. Sales of licenses for webMethods increased by 31% and made 29.6 million euros. The number of large projects using this software and also the average cost of the transaction increased.

"Software AG reached an important milestone: we could bring the second business division to stable growth. Now organic growth and successful acquisitions of division of webMethods supplement the profitable transactions ETS, - the CEO of Software AG Karl-Heinz Streibich noted. – Our strategy completely was repaid. webMethods is a new profitable source of growth which will allow the company to reach new level. And it only the beginning. Consolidation with IDS Scheer AG creates additional premises for active growth in the future".

Revenue in the directions

The division of webMethods recorded in the second quarter growth of revenues to 18% (89.4 million euros). Turnover of division of corporate systems of transaction processing (Adabas, Natural) made 96.3 million euros (100.9 million in the second quarter 2009) that is 5% lower, than for the same period of last year, but is 8% higher in comparison with the last quarter. The contribution of the division of process innovations for the enterprises provided by the IDS Scheer company purchased by Software AG in August, 2009 was 81.6 million euros. From them 23.4 million euros were received from sale of products, and 57.9 million more due to consulting services of IDS Scheer and product introduction.

Operating income and movement of cash

Noticeable growth of division of webMethods and effective management of costs allowed to raise operating income in the second quarter to 58.9 million euros. Net profit grew by 29% and was 37.4 million euros (in the second quarter 2009 – 28.9 million euros). Net profit counting on an action rose up to 1.32 euros (in 2009 – 1.02 euros).

"In recent years we turned division of webMethods into a stable source of growth, and now it contributes significantly to turnover of Software AG. During the next periods of webMethods and ARIS will also promote dynamic profit increase of Software AG before interest and taxes, - the chief financial officer of Software AG Arnd Zinnhardt comments. – Growth of revenue and free cash – a basis of further strategic development of our company".

The first half of the year 2010.

Turnover of the Software AG group in the first half of the year 2010 made 517.6 million euros that is 51% higher, than for the same period of last year (341.7 million euros). Sales proceeds of products made 308.6 million euros that is 20% higher, than in the first half of the year 2009 (256.2 million euros). Income from updating of versions of software increased by 21% and was 178.6 million euros (in the first half of the year 2009 – 147.1 million euros). Income from sale of licenses grew by 19% (109.1 million euros in the first half of the year 2009, 130.1 million euros in the first half of the year 2010). Growth of revenue of division of webMethods was 14%, having reached 170.7 million euros (150.1 million euros in the first half of the year 2009). Receipts of division of ETS made 185.4 million euros that it is slightly less in comparison with the same period of last year (191.5 million euros).

Forecast

Software AG confirms the forecast for 2010 financial year published in February: growth of turnover will be 25-30%, growth of sales proceeds of products – 12-15% at a permanent exchange rate. Growth of proceeds from sales of the products ETS is expected at the level of 2-4%, the products webMethods/ARIS – at the level of 25-30%. The company expects increase in a post-tax profit and net profit counting on an action and adjusts the forecast of profit increase to 10-12%, narrowing the range of the previous forecast towards the upper bound.