EANS-Adhoc: Software AG Weak sales in the US leads to drop in revenue in the
fourth quarter of 2011 (full-year revenue remains stable)
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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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10.01.2012
Business Process Excellence (BPE) division: strong growth in Europe offset
lower revenue in the U.S.
Enterprise Transactions Systems (ETS) division: overall customer reluctance to
invest dampened efforts to offset the expected structural reduction of sales in
Brazil
Q4 total revenue was about 8 to 10 percent below 2010 (at constant currency
rates)
Profit after tax in the region of EUR45 to EUR50 million for the quarter is
expected
Darmstadt, Germany, January 10, 2012, Software AG (Frankfurt TecDAX: SOW), after
an initial consolidation of the revenue and earnings estimates of the
subsidiaries for the fourth quarter 2011, announced total revenues of
approximately EUR290 to EUR295 million (previous year EUR326.7 million). At
constant currency rates, total fourth quarter revenue was about 8 to 10 percent
below the previous year´s figure and fourth quarter license revenue of about
EUR90 to EUR95 million (previous year EUR127.7), about 25 to 27 percent below.
In the fourth quarter, the growth segment BPE (innovative software for process
integration and automation) license revenue, in both DACH and in the EMEA region
increased by about 40 percent. This success was offset by a significant decline
in the U.S., so that the total revenue of the division of EUR145 to EUR148
million remained at the 2010 level, at constant currency rates.
The usual seasonal boost (budget flush) in ETS sales in the fourth quarter did
not materialize. Presumably, the predicted economic slowdown meant that
customers residual budget, in contrast to normal years, was not invested in
capacity expansion. Therefore, the stable ETS revenues in Europe and the
increased ETS revenues in the U.S. did not fully compensate for the expected
structural effects on sales in Brazil (the transfer of local customers to the
direct sale model was completed in 2010). As a result, total ETS revenue in the
fourth quarter of about EUR100 to EUR103 million (previous year EUR133.2
million) did not match the stable development of the first nine months. ETS
product revenue of EUR83 to EUR85 million (previous year EUR115.9) was further
under last year's fourth quarter high value than planned, a quarter also
characterized by exceptionally large contracts.
The lower license revenues are not fully reflected in Group earnings due to the
established company revenue-related compensation schemes. Software AG therefore
expects profit after tax of EUR45 to EUR50 million for the fourth quarter.
For the full year 2011, Software AG achieved a turnover of nearly EUR1.1
billion, the same level as 2010, at constant currency rates. BPE product revenue
(licenses and maintenance) grew by 6 to 7 percent while the ETS division
reported a decline of 9 to 10 percent.
The full-year 2011 profit after tax is expected to be around the same level as
the previous year (EUR175.6 million).
in EUR million Q4 2011 prel. Q4 2010 Delta % Delta % acc
BPE Product Revenue 97 to 100 100.2 0% to -3% -1% to -2%
ETS Product Revenue 83 to 85 115.9 -27% to -28% -26% to -27%
Total Revenue 290 to 295 326.7 -10% to -11% -8% to -10%
Net Income 45 to 50 64.7 -23% to -30% n/a
Software AG will give further details in a telephone conference call on 10th
January 2012, at 11:00 CET.
Software AG will publish its full earnings on January 24th, 2012.
Further inquiry note:
Frau Antje Drommershausen
Investor Relations Manager
Tel.: +49 6151 92-1899
E-Mail: Antje.Drommershausen@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: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover
language: English