18.07.2017 00:30
Bewerten
(0)

DGAP-News: Software AG

DRUCKEN
DGAP-News: Software AG Raises Outlook for Operating Profit Margin Based on Q2 2017 Financial Results

DGAP-News: Software AG / Key word(s): Change in Forecast
Software AG Raises Outlook for Operating Profit Margin Based on Q2 2017 Financial Results

18.07.2017 / 00:30
The issuer is solely responsible for the content of this announcement.


PRESS RELEASE

Software AG Raises Outlook for Operating Profit Margin Based on Q2 2017 Financial Results

- Digital business up 8 percent in H1 and up 4 percent in Q2

- Growth in the maintenance business drives profitability

- EBIT increases by 11 percent, overproportionately to total revenue

- Operating profit margin (EBITA, non-IFRS) increases by 210 basis points to 29.5 percent

- Full-year outlook raised: operating profit margin to reach 31.0 to 32.0 percent in 2017

- 2017 revenue outlook for Digital Business Platform and Adabas & Natural confirmed

- Strong growth in the Cloud business (order entry up 100 percent in H1)

[All figures are rounded unless otherwise indicated.]

Darmstadt, Germany, July 17, 2017 - Software AG (Frankfurt TecDAX: SOW) today announced its financial figures (IFRS, preliminary) for the first half and the second quarter of fiscal 2017. Total revenue rose by 2 percent in the second quarter, while earnings before interest and taxes (EBIT) grew overproportionately by 11 percent. The result was mainly driven by high margin maintenance revenues in the digital business, which grew by 9 percent in the second quarter. The operating profit margin (EBITA, non-IFRS) improved significantly and increased by 210 basis points to 29.5 percent (previous year: 27.4 percent). Based on the increased profitability, the company raised the full-year outlook for its operating profit margin to a corridor of 31.0 to 32.0 percent (prior: 30.5 to 31.5 percent). The guidance for Software AG's digital business line (Digital Business Platform) and for its database business (Adabas & Natural) were reconfirmed. After the first half of 2017 and a positive start into the second half of the year, Software AG remains confident in continuing its successful business development.

"Software AG's success story is underlined by the positive development in the first half of 2017. We are extending our technological leadership in the areas of the Internet of Things and the Industrial Internet. Both our financial figures as well as new strategic partnerships with selected industry giants clearly proof that Software AG's global relevance in the IoT market is growing rapidly," Karl-Heinz Streibich, CEO of Software AG, stated.

"Software AG remains one of the most profitable enterprises in the technology industry. Once again we were able to expand our already high margins in all our three business lines. Regarding the second half of the financial year, we remain very confident in further expanding our profitable growth," Arnd Zinnhardt, CFO of Software AG, commented.

Business area development in H1/2017

The Digital Business Platform (DBP) business line demonstrated a positive development in the first half of 2017. DBP maintenance revenue improved by 9 percent to EUR135.6 million (2016: 124.4 million) in the same period. License revenue rose by 5 percent to EUR74.1 million (2016: EUR70.6 million). Overall, the DBP business line generated EUR209.8 million (2016: EUR195.0 million) in product revenue (licenses + maintenance), an increase of 8 percent in the first six months. This growth underlines the increasing relevance of Software AG in the numerous digitalization projects of renowned globally leading customers. At constant currency, the digital business line grew by 6 percent in the first half of 2017, falling within the outlook corridor.

Software AG's database business line Adabas & Natural (A&N) generated EUR100.3 million (2016: EUR116.0 million) in revenue in the first half of 2017. A&N maintenance revenue remained stable in the first half of the year at EUR78.9 million (2016: EUR77.6 million). This development underscores the high loyalty of the A&N customer base and illustrates the long-term importance of Software AG's database management system for business-critical applications. License revenue reached EUR21.1 million (2016: EUR38.0 million). At constant currency, product revenue remains, as expected, below the targeted corridor. Based on the strong pipeline in the second half of the year, the solid maintenance business and the typical seasonality, Software AG remains confident of and reconfirms its A&N targets for the full year.

The Consulting business line increased its revenue to EUR103.2 million (2016: EUR98.6 million), up 5 percent. At the same time, the segment margin significantly improved to 12.1 (2016: 6.7) percent. This represents a top performance level within the industry and underscores the successful transformation of the consulting business from a project implementation focus to being a strategic customer partner.

Total revenue and earnings development in H1/2017

Software AG's total revenue in the first half of fiscal 2017 increased to EUR413.3 million (2016: EUR409.6 million). The company's product revenue (licenses + maintenance) reached last year's level at EUR309.8 million (2016: EUR310.6 million). The maintenance revenue grew by 6 percent to EUR214.6 million (2016: EUR202.0 million). The group's license revenue totaled EUR95.2 million (2016: EUR108.6 million) in the reported period.

Driven by a significant increase in earnings in the second quarter, the Group's earnings before interest and taxes (EBIT) reached EUR89.6 million (2016: EUR88.7 million) in the first half of 2017. Accordingly, the EBIT margin was at 21.7 (2016: 21.7) percent. The operating profit (EBITA, non-IFRS) increased to EUR117.6 million (2016: EUR115.0 million). The operating profit margin (non-IFRS) significantly climbed 30 basis points to 28.4 (2016: 28.1) percent.

Outlook for 2017

Based on the increased profitability in the second quarter, the business development in the first half of 2017 and the strong project pipeline for the second half of the year, Software AG raised its 2017 outlook. The company now expects its operating profit margin (EBITA, non-IFRS) to reach 31.0 to 32.0 percent (prior: 30.5 to 31.5 percent). The Digital Business Platform (DBP) product revenue is expected to increase between +5 and +10 percent (at constant currency). For the database business Adabas & Natural (A&N), the Group continues to expect a revenue decline between 2 and 6 percent at constant currency.

2017 Outlook      
  FY 2016
(in EUR millions)
FY 2017 Outlook
(as of June 30, 2017)
H1 2017
(as of June 30, 2017)
Product Revenue
Digital Business Platform
441.4 +5% to +10%* +6%*
Product Revenue
Adabas & Natural
233.9 -2% to -6%* -17%*
Operating profit margin
(EBITA, non-IFRS)**
31.2% 31.0% to 32.0% 28.4%
       
* At constant currency

** After adjusting for non-operating factors (see non-IFRS results)

A conference call for financial analysts, investors and media representatives will take place on Tuesday, July 18, 2017 at 9:00 am CEST (8:00 BST). Local dial-in numbers for Germany: +49 69 7104 91462; UK: +44 2030 598 126 and USA: +1 561 771 1427. The webcast presentation will be available from 7:00 am CEST on the company's website at www.SoftwareAG.com/investors.

Final Q2 and H1 financial results will be published on July 20, 2017 on Software AG's corporate website.

Key Figures

Key Figures for First Half 2017 (IFRS, unaudited) - as of June 30, 2017
in EUR millions (unless otherwise stated) H1 2017 H1 2016 ( as % ( as % acc*
Revenue 413.3 409.6 1% -1%
DBP business line 209.8 195.0 8% 6%
thereof licences 74.1 70.6 5% 3%
thereof maintenance 135.6 124.4 9% 7%
A&N business line 100.3 116.0 -14% -17%
Consulting business line 103.2 98.6 5% 3%
EBIT (IFRS) 89.6 88.7 1%  
Operating EBITA (non-IFRS) 117.6 115.0 2%  
as % of revenue 28.4% 28.1%    
DBP segment earnings 60.6 52.3 16% 15%
Segment margin 28.9% 26.8%    
A&N segment earnings 67.4 79.8 -16% -20%
Segment margin 67.2% 68.8%    
Net income (non-IFRS) 77.5 75.5 3%  
Earnings per share (non-IFRS)** 1.03 0.99 4%  
Employees (FTE) 4,570 4,471    
         
* acc = at constant currency

** Based on weighted average shares outstanding (basic) H1 2017: 75.3m / H1 2016: 76.2m
*** Cash flow from investing activities adjusted for acquisitions and investments in debt instruments

Key Figures for Q2 2016 (IFRS, unaudited) - as of June 30, 2017
in EUR millions (unless otherwise stated) Q2 2017 Q2 2016 ( as % ( as % acc*
Revenue 207.4 203.4 2% 1%
DBP business line 104.1 100.5 4% 3%
thereof licences 35.7 38.0 -6% -7%
thereof maintenance 68.4 62.5 9% 8%
A&N business line 52.3 52.3 0% -3%
Consulting business line 50.9 50.5 1% 0%
EBIT (IFRS) 48.1 43.3 11%  
Operating EBITA (non-IFRS) 61.3 55.8 10%  
as % of revenue 29.5% 27.4%    
DBP segment earnings 30.6 28.6 7% 8%
Segment margin 29.4% 28.5%    
A&N segment earnings 36.4 35.0 4% 0%
Segment margin 69.6% 66.9%    
Net income (non-IFRS) 40.2 36.7 10%  
Earnings per share (non-IFRS)** 0.54 0.48 13%  
         
* acc = at constant currency

** Based on weighted average shares outstanding (basic) Q2 2017: 74.8m / Q2 2016: 76.2m
*** Cash flow from investing activities adjusted for acquisitions and investments in debt instruments

###

About Software AG

The digital transformation is changing enterprise IT landscapes from inflexible application silos to modern software platform-driven IT architectures which deliver the openness, speed and agility needed to enable the digital real-time enterprise.

Software AG offers the first end-to-end Digital Business Platform, based on open standards, with integration, process management, in-memory data, adaptive application development, real-time analytics and enterprise architecture management as core building blocks. The modular platform allows users to develop the next generation of application systems to build their digital future, today.

With over 45 years of customer-centric innovation, Software AG is ranked as a leader in many innovative and digital technology categories. Software AG has more than 4,500 employees, is active in 70 countries and had revenues of EUR872 million in 2016.

Learn more at www.softwareag.com.


Software AG | Uhlandstraße 12 | 64297 Darmstadt | Germany

Detailed press information about Software AG including a picture and multimedia database are available under: www.softwareag.com/press

Follow us on Twitter: Software AG Germany | Software AG Global

Contact:

Byung-Hun Park <byung-hun.park@softwareag.com>
Senior Vice President Global Corporate Communications
T: +49 (0) 6151 92 2070
M: +49 (0) 151 64 911 317
 
 


18.07.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: Software AG
Uhlandstraße 12
64297 Darmstadt
Germany
Phone: +49 (0)6151 92-1900
Fax: +49 (0)6151 92-34 1899
E-mail: Investor.Relations@softwareag.com
Internet: www.softwareag.com
ISIN: DE0003304002
WKN: 330400
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

 
End of News DGAP News Service

593443  18.07.2017 

fncls.ssp?fn=show_t_gif&application_id=593443&application_name=news&site_id=smarthouse

Nachrichten zu Software AG

  • Relevant
  • Alle
  • vom Unternehmen
  • Peer Group
  • ?

Um Ihnen die Übersicht über die große Anzahl an Nachrichten, die jeden Tag für ein Unternehmen erscheinen, etwas zu erleichtern, haben wir den Nachrichtenfeed in folgende Kategorien aufgeteilt:

Relevant: Nachrichten von ausgesuchten Quellen, die sich im Speziellen mit diesem Unternehmen befassen

Alle: Alle Nachrichten, die dieses Unternehmen betreffen. Z.B. auch Marktberichte die außerdem auch andere Unternehmen betreffen

vom Unternehmen: Nachrichten und Adhoc-Meldungen, die vom Unternehmen selbst veröffentlicht werden

Peer Group: Nachrichten von Unternehmen, die zur Peer Group gehören

Analysen zu Software AG

  • Alle
  • Buy
  • Hold
  • Sell
  • ?
13.11.2017Software kaufenDZ BANK
30.10.2017Software SellGoldman Sachs Group Inc.
24.10.2017Software HoldDeutsche Bank AG
24.10.2017Software HoldHSBC
23.10.2017Software HoldKepler Cheuvreux
13.11.2017Software kaufenDZ BANK
23.10.2017Software kaufenDZ BANK
23.10.2017Software buyBaader Bank
23.10.2017Software buyOddo Seydler Bank AG
23.10.2017Software buyUBS AG
24.10.2017Software HoldDeutsche Bank AG
24.10.2017Software HoldHSBC
23.10.2017Software HoldKepler Cheuvreux
23.10.2017Software neutralIndependent Research GmbH
23.10.2017Software NeutralJP Morgan Chase & Co.
30.10.2017Software SellGoldman Sachs Group Inc.
23.10.2017Software SellGoldman Sachs Group Inc.
23.10.2017Software UnderweightBarclays Capital
16.10.2017Software UnderweightMorgan Stanley
12.10.2017Software UnderweightBarclays Capital

Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für Software AG nach folgenden Kriterien zu filtern.

Alle: Alle Empfehlungen

Buy: Kaufempfehlungen wie z.B. "kaufen" oder "buy"

Hold: Halten-Empfehlungen wie z.B. "halten" oder "neutral"

Sell: Verkaufsempfehlungn wie z.B. "verkaufen" oder "reduce"
mehr Analysen
Anzeige
Anzeige
Börse Stuttgart Anlegerclub

Payment-Trend: Der Vormarsch von digitalen Zahlungsabwicklern

Im neuen Anlegermagazin lesen Sie, warum vor allem asiatische Unternehmen beim Mobile-Payment eine wichtige Rolle spielen und welche Aktien vom mobilen Bezahlen profitieren könnten.
Anlegermagazin kostenlos erhalten

Heute im Fokus

DAX im Minus erwartet -- Asiens Börsen schwächer -- ProSiebenSat.1-Chef geht vorzeitig -- Alibaba kauft sich bei Chinas größtem SB-Warenhausbetreiber ein -- Air Berlin im Fokus

Acht Großbanken verhandeln wohl mit EU Devisenkartell-Vergleich. US-Marvell kauft angeblich Cavium für etwa sechs Milliarden Dollar. Einzelhändler wollen Teslas Elektro-Lastwagen ausprobieren. Toshiba geht in die Offensive - Finanzspritze soll Probleme lindern. Maschinenbauer KUKA streicht 250 Stellen in Augsburg.

Top-Rankings

KW 46: Analysten-Tops der Woche
Diese Aktien stehen auf den Kauflisten der Experten
KW 45: Analysten-Flops der Woche
Diese Aktien stehen auf den Verkauflisten der Experten
Die Länder mit den größten Goldreserven 2017
Wo lagert das meiste Gold?

Die 5 beliebtesten Top-Rankings

Das sind die bestbezahlten Schauspieler 2017
Wer verdiente am meisten?
Die wertvollsten Unternehmen nach Marktkapitalisierung 2017
Welches Unternehmen macht das Rennen?
Erster Job
Wo Absolventen am meisten Geld verdienen
Das sind die größten Privatbanken weltweit
Welche Bank macht 2017 das Rennen?
Die besten Städte für Londoner Banker
Welche Stadt bietet die meisten Vorteile?
mehr Top Rankings

Umfrage

Glauben Sie, dass eine Jamaika-Koalition zustande kommt?

Online Brokerage über finanzen.net

Das Beste aus zwei Welten: Handeln Sie für nur 5 Euro Orderprovision* pro Trade unmittelbar aus der Informationswelt von finanzen.net!
Zur klassischen Ansicht wechseln
Top News
Beliebte Suchen
DAX 30
Öl
Euro US-Dollar
Bitcoin
Goldpreis
Meistgesucht
Deutsche Bank AG514000
Daimler AG710000
Volkswagen (VW) AG Vz.766403
Scout24 AGA12DM8
Apple Inc.865985
EVOTEC AG566480
BMW AG519000
Allianz840400
E.ON SEENAG99
BASFBASF11
TeslaA1CX3T
Siemens AG723610
BYD Co. Ltd.A0M4W9
adidas AGA1EWWW
Deutsche Telekom AG555750