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Germany : Delays in large-deal projects slows license growth - Target operating margin: 26 to 28 percent [TendersInfo (India)](TendersInfo (India) Via Acquire Media NewsEdge) Software AG today reported its business results for the second quarter 2014. It had already informed the market about its Q2 preliminary financial figures on 14 July per regulatory pre-release. These preliminary numbers are now confirmed. The Business Process Excellence (BPE) division had revenues of 84.6 million (previous year: 91.4 million) in the second quarter. License revenue with 32.7 million (previous year: 42.8 million) was under the previous year s level. Maintenance revenue, however, rose in the second quarter to 51.9 million (previous year: 48.6 million), an operating growth by 11 percent. The traditional database business Enterprise Transaction Systems (ETS) was in line with expectations, with sales of 55.9 million (previous year: 75.8 million). License revenue amounted to 17.4 million (previous year: 32.6 million). ETS maintenance revenue was 38.3 million euros (previous year: 43.1 million). The Consulting division reported revenues of 55.5 million (previous year: 70.5 million). The main reason was the deconsolidation of the SAP service activities. After the sale of the business focused on third-party solutions, Software AG will concentrate exclusively on the development, distribution and service of its own products. The operating profit (non-IFRS) decreased in the second quarter to 45.1 million (previous year: 58.7 million); this corresponds to an operating margin of 23 percent. The reported EBIT (IFRS) was impacted by one-off effects from the deconsolidation of the SAP consulting business and is 25 million (previous year: 44.4 million). Net income after taxes reached 14.2 million (previous year 28.8 million). Accordingly, earnings per share were 0.18 (previous year 0.34). As of 30 June, Software AG s balance sheet totaled to 1,730.7 million (31. Dec. 2013: 1,996.9 million). The company s equity ratio improved to 53 percent (31. Dec. 2013: 48 percent). The free cash flow in the first half of 2014 was 66.3 million (previous year: 77.3 million). Outlook For the full year 2014, the Group now expects BPE revenues to remain approximately at the previous year s level. Revenue forecast in the traditional database business ETS remains unchanged at a reduction of -16 percent to -9 percent (net of currency effects). The company expects an operating margin (non-IFRS) of 26-28 percent for the full year 2014 (previous year: 26.8 percent). (c) 2014 Euclid Infotech Pvt. Ltd. Provided by SyndiGate Media Inc. (Syndigate.info). |