DARMSTADT (AFX) – Software AG (software) received in the third quarter a damper in their growth division. Sales in the current under the name of Digital Business Platform area for integration software increased compared to the same period last year only seven percent to 103 million euros, as the MDAX-listed company announced a surprise on Tuesday night in Darmstadt. So she missed the expectations of analysts. In addition, the Board emphasized the revenue expectations of the division for the full year significantly together.
On the stock market, the price of Software AG shares plunged to trade opening by almost eight per cent in the depth. “The preliminary figures look good, at first glance – but not on closer analysis,” said a broker.
Across the Group, the revenues grew in the last quarter by 5 percent to around 216 million euros. Thus they were in line with analysts’ expectations. In addition to positive currency effects also contributed to the surprisingly strong core business with database software, which grew nine percent to nearly 67 million euros. The operating profit (adjusted EBITDA) increased the Software AG by eleven percent to around 70 million euros. Before interest and taxes even around a third more remained than a year ago.
However contributed significantly a balance-sheet special effect at. Background is the Group’s new alignment. Software AG will no longer grow through acquisitions at present, because potential takeover candidates have become too expensive. Therefore, in the Compensation Planning held for managing sales targets can no longer reach. The result is that managers get less money than originally planned. Therefore, Software AG resolves a provision, resulting in a special profit of 15.4 million euros. For the conversion of sales the company presented at the same time about eight million euros for the page.
For the full year, the Management Board now expects a slightly higher operating profit margin of 28 and 29 percentage (To date, 27.5 to 28.5) , At the main revenue driver Digital Business Platform management is however much more pessimistic. Sales are expected to rise only there in the current year to a maximum of 3 percent, a stagnation is possible. Recently the company had targeted a growth of 6 percent to 12 percent <- sh_cad_5 ->
In the much smaller license division called Adabas & amp. Natural should it only shrink the revenue by 4 to 6 percent. To date, the Board had a decline 8-14 percent expected. From the sales forecasts changes in exchange rates are factored out. The Software AG benefited from the last in comparison to the US dollar weak euro. The full quarterly report will Software AG will publish on 28 October. / Enl / STW / STB
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