Turnaround in the second quarter: Software AG is back up to speed – Handelsblatt

It looks friendly again from

The Software AG can look back optimistic about the future

(Photo: AP).

Dusseldorf Software AG has more than three years after their win loss stopped. Thanks to a record contribution of its highly profitable maintenance business and after parting from consulting for SAP software, the Darmstadt-based company managed in the second quarter’s bottom line profits jump by 40 percent to 19.9 million euros. Conversion and cost reductions deceptive fruits, CEO Karl-Heinz Streibich said on Thursday. “We are delighted to confirm the view today.” Investors thanked it and heaved the stock on the TecDAX temporarily by nine per cent up to 27.65 euros.

The Software AG had reversed two years ago. To gain more rauszuholen, Germany’s second-largest software maker focused on SAP in its own product line, including the maintenance services. The focus of Darmstadt are since then the company software and services that integrate the increasingly complex IT systems of companies (Digital Business Platform DBP). Long stuttered business with this integration software, and late leaned management the trend toward rental software via the Internet (cloud software), while its traditional database business (Adabas & amp; Natural). Continued to lose sales

But in the second quarter, the business integration software grew. “The switch to digital business was necessary,” said Sales and Executive Eric Duffaut. Until such a change show effect, it would last. “But we are getting better, day by day, from month to month, from quarter to quarter.” In the database area climbed to Darmstadt. Overall, therefore, a total of skipped the recurring revenues from maintenance business, secure the long-term revenue, the first time the 100-million-euro mark in a single quarter. They put 14 percent to 103.6 million euros. Consolidated sales grew by five per cent to 205.6 million euros, not counting the sold business consulting for SAP software by ten percent. That was more than analysts had expected. Also the operating profit increase by 33 percent surprised the experts positively.

Confident showed the board, sales and margin goals for this year to reach. Accordingly, the database division to deliver eight to 14 percent less than last year. However, six to twelve percent more sales are expected to provide the integration business. Operating return expected by the Board from 27.5 to 28.5 percent.