EANS-Adhoc: Software AG
Full year outlook confirmed despite weaker growth in
Q2 2011
-------------------------------------------------------------------------------- ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- quarterly report 13.07.2011 Full year outlook confirmed despite weaker growth in Q2 2011 Negative impact of currency translation lowered stated revenue Product revenue in local currency roughly at previous year´s level Revenue decline in SAP-implementation in Europe Growth of EBIT margin to 22.5-23.0% Revenue and earnings forecast for fiscal 2011 confirmed Software AG, Darmstadt (Frankfurt TecDAX: SOW) achieved total revenues of approx. EUR256-258 (2010: 267.3) million in the second quarter of the current fiscal year, based on an initial consolidation of financial figures. Total revenue at constant currency held steady at the previous year´s level. Less-favorable foreign currency translations had a significant impact on stated revenues in comparison to the corresponding period in 2010 (approx. - EUR10 million). License sales continue to exhibit the weakness seen in first quarter 2011, and a number of planned licensing agreements in both product lines (ETS und BPE) failed to close in June. BPE project services posted double-digit growth in the second quarter, whereas demand for implementation of SAP products remained below the previous year´s level. For the second quarter of fiscal 2011, the company now expects to report services revenue of approx. EUR105-106 (2010: 105.4) million and product revenue of approx. EUR151-152 (2010: 161.9) million, of which licensing revenue will account for EUR57-58 (2010: 68.8) million. Nevertheless, Software AG expects to increase its EBIT margin for the second quarter to a level of 22.5-23.0% (2010: 22.0%) because of improved cost ratios compared to the previous year. The stated EBIT (IFRS) for Q2 2011 will roughly match the previous year´s result of EUR58.9 million. The sales pipeline remains strong and can make up for the lower licensing revenues of Q2 2011 based on expected license deals and consulting projects slated for the second half of fiscal 2011. In addition, management is poised to take action to overcome operating weaknesses identified in Europe. On this basis, the company affirms the forecast for the full year 2011 that was published in January, which predicted revenue growth of 5-7%, at constant currency, and a jump in net income of 10-15%. Full and finalized figures will be published on July 28, 2011. Further inquiry note: Otmar Winzig - SVP Investor Relations Fon: +49 (0) 6151/92-1669 email: otmar.winzig@softwareag.com end of announcement euro adhoc -------------------------------------------------------------------------------- issuer: Software AG Uhlandstr. 12 D-64297 Darmstadt phone: +49 (0)6151 92 1899 FAX: +49 (0) 6151 92 1933 mail: investor.relations@softwareag.com WWW: http://www.softwareag.com sector: Software ISIN: DE0003304002 indexes: TecDAX, CDAX, HDAX, Prime All Share, Technology All Share stockmarkets: official dealing/prime standard: Frankfurt, free trade: Berlin, Hamburg, Stuttgart, Düsseldorf, Hannover language: English
Original content of: Software AG, transmitted by news aktuell