Ad-hoc | 13 October 2015 20:27
Software AG / Key word(s): Preliminary Results/Change in Forecast
13.10.2015 20:27
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AD HOC DISCLOSURE ACCORDING TO § 15 WPHG
Software AG: Preliminary Financial results in the Third Quarter 2015 -
Adjustment of Full Year 2015 Outlook
13.10.2015, Darmstadt (Software AG, SOW - TECDAX)
1. Software AG Announces Preliminary Third Quarter Results:
Due to the company's value oriented strategy within the past 12 months and
the conscious avoidance of acquisitions because of the current high price
levels in the M&A market environment, Software AG's Management Board
considers the revenue goals from the Management Incentive Program 2011 (MIP
IV) no longer achievable. These revenue goals were planned to be reached
within a 5 year period until the end of fiscal year 2015. Therefore, the
Management Board has decided to release provisions accrued in the third
quarter 2015. Consequently, the company recorded an one-time extraordinary
gain in the volume of EUR 15.4 million.
Software AG has further developed its future-oriented sales and
distribution organization. In this context the third quarter 2015 earnings
are burdened by expenses in an amount of approximately EUR 8 million.
Earnings before Interest and Tax (EBIT pursuant to IFRS) rise after the
extraordinary effects by 34 to 36 percent to EUR 66 to 67 million (PY: EUR
49.1 million).
Preliminary Key Figures for Q3 2015 (IFRS, unaudited)
in EUR millions Q3/2015 Q3/2014 ∆ in %
rounded
Total Revenue 215.9 205.6 +5%
Product Revenue 169.9 157.8 +8%
Maintenance revenue 101.0 93.6 +8%
License revenue 68.9 64.2 +7%
Adabas & Natural 66.9 61.3 +9%
A&N maintenance 39.2 39.3 +0%
A&N license 27.5 21.9 +25%
Digital Business Platform 103.2 96.6 +7%
DBP maintenance 61.8 54.4 +14%
DBP license 41.4 42.2 -2%
Consulting 45.8 47.7 -4%
EBIT* 66 to 67 49.1 +34 to +36%
Operating income (EBITA, non-IFRS)** approx. 70 62.8 approx. +11%
as % of total revenue >32% 30.5% +1.5 PP
* = Consolidated net income + income tax + other tax + financial result
** = EBITA adjusted for reduction of acquisition-related product revenue by
purchase price allocation, other acquisition effects, share-based payment,
restructuring/severance payments and operating income of divested units
2. Full Year 2015 Outlook
The Management Board of Software AG has adjusted the Full Year 2015 Outlook
as follows:
Due to the business development of the first nine months and based on the
projected pipeline of the fourth quarter, Software AG updated its forecast
for fiscal 2015. The company now expects a revenue increase for the Digtial
Business Platform between 0 and 3 percent (before: 6 to 12 percent) and a
decrease for Adabas & Natural by only 4 to 6 percent (before: 8 to 14
percent) to previous year's level at constant exchange rates. At the same
time, Software AG raised the outlook for its operating profit margin (EBITA
non-IFRS) by 50 basis points to between 28.0 and 29.0 percent (before: 27.5
to 28.5 percent).
Software AG will publish further information regarding the preliminary
Third Quarter 2015 Results in a press release. The Third Quarter 2015
Financial Results and the Financial Results for the first nine calendar
months 2015 will be published by Software AG on October 28, 2015.
13.10.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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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, Munich,
Stuttgart
End of Announcement DGAP News-Service
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