Software AG

EANS-Adhoc: Software AG
RESULTS AND LICENSING REVENUES EXCEED MARKET EXPECTATIONS IN THE 3RD QUARTER 2012


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  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.
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quarterly report

12.10.2012

- License revenue in the Business Process Excellence (BPE) division rose by 20
percent
- EBIT of EUR60 to EUR62 million
- BPE returns double-digit license growth in all regions
- Stable ETS business compared to Q3, 2011
- Full year 2012 forecast confirmed

Darmstadt, 12-10-2012 - Software AG (Frankfurt TecDAX: SOW) today pre-announced
its key figures for the 3rd Quarter, 2012 after an initial consolidation of its
financial numbers (all figures preliminary, rounded and subject to change). 

Development of license revenues

Software AG reported software license revenues, the key growth indicator, of
around EUR81 million in the third quarter. This represents an increase of ca. 8
percent over the very strong previous year's third quarter (EUR74.7 million) and
significantly exceeds market expectations.
In Business Process Excellence (BPE), license sales rose by 20 percent to ca.
EUR50 million (previous year: EUR41.7 million). This positive development was
based on all regions reporting double-digit revenue growth. The sales offensive
in North America, in which the company has been investing since the beginning of
the year, delivered strong growth for the second consecutive quarter. Europe
also continued its positive development. Moreover, the "Big Data" products from
Terracotta continued their dynamic growth and contributed some EUR5 million
license revenue in the 3rd quarter, repeating the record sales of the 2nd
quarter record.

In the traditional Enterprise Transaction Services (ETS) division, license
revenue was approximately EUR30 million, almost at the high level of 2011
(EUR31.6 million), contributing to the further stabilization of the classic
database business.

Development of maintenance and services revenues

Group maintenance revenue increased in the 3rd Quarter of 2012 by ca. 4 percent
to about EUR98 million (previous year: EUR94.2 million), with both the BPE and
ETS divisions contributing approximately EUR47 million each. Group services
revenue in the quarter amounted to approximately EUR78 million (previous year:
EUR105.2 million) of which one third was contributed by IDS Scheer Consulting,
implementing SAP solutions. The background to this sales decline is the
concentration of the consulting business on process-driven SAP solutions in
selected core markets.

Total revenue and income for the 3rd Quarter 2012

Due to reduced services revenues, total Group sales amounted to EUR257 million
(EUR274.6 million in Q3, 2011) but reached the high level of the seasonally
stronger 2nd quarter of 2012 (EUR258.6 million). The operating result (EBIT
according to IFRS) was EUR60 to EUR62 million, above the level of the previous
quarter of the current year (EUR57.1 million). Due to the currently higher
expenses based on the development and expansion of the marketing and sales
organization for the new growth products, particularly in the U.S., and this
year's charges arising from the focus of the consulting business, the operating
profit was below the extraordinarily strong previous year's quarter (EUR72.0
million).

Development of the first 9-months 2012

Dynamic BPE license sales was approximately EUR131 million (previous year:
EUR112.1 million) in the first 9 months. This is an increase of about 17
percent. The ETS business 9-month license revenues were slightly above the
previous year at EUR89 million (EUR87.2 million). Product revenues (licenses and
maintenance) at the group level climbed in the 9-month period by about 6 per
cent to around EUR515 million (previous year EUR484.7 million). Marked by the
consolidation of the consulting business, sales and earnings in the services
business were below the previous year's. Accordingly, consolidated sales in the
first 9-months were EUR770 million (previous year EUR804.3 million). The
operating result was in the range of EUR172 to EUR174 million (previous year:
EUR190 million).

Outlook

The dynamic growth in license sales, driven by the innovative BPE and Terracotta
products and strengthened by stable ETS development positively impacted the
first 9 months of fiscal 2012 and is expected to continue in the 4th quarter.
Therefore Software AG confirms its forecast for the full year. The company will
provide refined guidance with the full disclosure of its quarterly results on 30
October 2012.


Further inquiry note:
Robert Adolph
Senior Manager Investor Relations
Tel.: +49 (6151) 92 1237
E-Mail: robert.adolph@softwareag.com

end of announcement                               euro adhoc 
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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: free trade: Hannover, Berlin, Hamburg, Düsseldorf, Stuttgart,
             regulated dealing/prime standard: Frankfurt 
language:   English
 

 

 



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