Thursday, 1 November 2007

Software AG Ups Operating Revenue by 48% in Q3

Software AG said it has continued to improve its revenue and earnings significantly in the third quarter of 2007 backing up that statement by revealing its financials for that period which amounted to Euros 157.8 million and a 48 percent increase in operating revenue.

According to the German based company, the Enterprise Transaction Systems (ETS) business division accounted for 55 percent of its total revenue, and the webMethods division generated 45 percent. The level of revenue earned by the webMethods business line was particularly encouraging: its currency-adjusted operating revenue grew by 161 percent year on year as a result of acquisitions, while its licensing revenue rose by 176 percent.

"Our leadership of the market for data management and integration software is now becoming evident. In the third quarter we closed over 250 deals, achieving an encouraging increase in our revenue. The acquisition of the US company webMethods made a valuable contribution to this result," said Karl-Heinz Streibich, CEO of Software AG.

CFO Arnd Zinnhardt added: "We continued to enhance our profitability in the third quarter. One of the main reasons for this is that we are making good progress in generating cost synergies. We therefore still expect to achieve cost savings of US million in 2007."

The organisation also said in a prepared statement that the demand for its products and services during this period were not impaired by the mortgage crisis in the United States.

In 2008 the company plans to raise its operating revenue by 22 percent to 25 percent net of currency effects and its EBIT margin to circa 23 percent.