Software AG shows strong growth in Q2

Despite a challenging market environment in the global software industry, the Group’s total revenue for the period grew 10 percent

Software AG has released its financial results for the second quarter of 2015. The business performance reported reflects the success of the company’s value-oriented strategy which is focused on profitable growth.

Software AG CEO Karl-Heinz Streibich commented, “In the second half of 2015, we will continue to concentrate on profitable growth through world-class operations and organic growth with our leading digital portfolio.”

CFO Arnd Zinnhardt elaborated, “The Q2 results reflect the implementation of targeted structural and operational improvements. Strong growth in maintenance revenues, higher earnings, increased profitability and a cash flow which more than doubled – all these key figures demonstrate our success in efficiency optimization. On this basis, we will further drive the value of our company.”

Software AG’s total Q2 revenue was €205.6 million which equals a 10-percent increase. Product revenue from the DBP and A&N lines totaled €157.1 which is 11-percent growth year-on-year. This marks an increase to 76 percent of total revenue, confirming Software AG’s focus on high margin product revenues.

Software AG has confirmed its outlook for fiscal 2015. The company anticipates revenue growth in the Digital Business Platform business line between 6 percent and 12 percent and revenue in Adabas & Natural between -8 percent and -14 percent year-on-year (each at constant currency). The operating profit margin (EBITA, non-IFRS) is expected to be between 27.5 and 28.5 percent.