Economy
Tuesday, 19 January 2016
In October 2015, the Software AG lowers sales forecast for its key growth drivers. The stock is punished. Now the company is presenting its quarterly figures – and surprised twice. The stock is in TOP WINNERS TecDax.
Charts
Surprisingly good fancy numbers help the shares of Software AG at a price jump. The title climb near the top of the 30-euro mark and then fluctuate around 29 euros. The surcharge amounts to about 13 percent. “The combination of slightly better than expected sales plus margin growth always goes down well,” said one trader. The anticipated margin 30-31 percent lege suggest that the company had costs under control, said DZ Bank analyst Harald Schnitzer.
In October, Software AG had its revenue forecast in 2015 after sluggish first nine months for the important area of digital business platform (DBP), in which Germany’s number two behind SAP offers integration software, lower still, for the margin for the Group was of the view but then raised. With the figures now presented the forecast for DBP has been reached.
It runs
In the fourth quarter, the company achieved both in license revenue as well as the maintenance revenues set new records in the future range. Total consolidated revenues climbed to 257.5 million euros from 247.3 million euros. Also operative (EBIT) went with 12 percent to 80.1 million euros significantly upwards.
The DBP sales climbed 2 percent in constant currency, while an increase from 0 to 3 percent had been promised. Even in the traditional database business Adabas & amp; Natural (A & N), the target was achieved with a decrease of 5 percent. Surprise was the Group on the other hand in the margin, which rose to 30 percent in 2015 from 28 percent. This outlook was last raised by 50 basis points to 28 to 29 percent.
“The fourth quarter results underscore the tremendous potential of our Digital Business Platform and clearly confirm our technological leadership in the market,” said Software AG CEO Karl-Heinz Streibich. The investment in the new area paid off.
realignment bears fruit
The company had done in the past few years difficulties with the changing IT world. Much of the revenue went back to old contracts of the database business, which expires slowly. With hopes that the company for some time on the newer area DBP, which was gradually built up through acquisitions. Central to this software is for companies such as Web Methods to integrate various IT systems such as SAP, Oracle or IBM. This conversion always carries more fruits.
Read more aboutTherefore, Software AG aims to further increase in the new year, the profitability in the best case. The EBITA margin should be in the group 30-31 percent. Sales in the database business Adabas & amp; Natural constant currency decrease by 4 to 8 percent, in business process management solutions (DBP) is expected to increase sales by 5 to 10 percent.
Before the Software AG had SAP presented last week numbers. Germany’s largest software group has significantly exceeded its own goals last year and convinced in the important fourth quarter in most relevant indicators.
Source: n-tv.de
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