13.07.2011 – 21:51

Software AG

EANS-Adhoc: Software AG
Full year outlook confirmed despite weaker growth in Q2 2011

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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

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 
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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: official dealing/prime standard: Frankfurt, free trade: Berlin,
             Hamburg, Stuttgart, Düsseldorf, Hannover 
language:   English