- Total revenue of €1.1 billion in 2011 remains at the previous year's record level
- Business Process Excellence total revenue up by 7 percent (at constant currency)
- Enterprise Transaction Systems (ETS) total revenue minus 8 percent (at constant currency)
- BIT margin up 50 basis points to 24.5 percent
- rofit after tax at €177 million slightly over the previous year's figure
Darmstadt, Germany, 1/24/2012
Software AG (Frankfurt TecDAX: SOW) reported revenue of €1.1 billion in fiscal year 2011, stable at the previous year's record level. The company's Business Process Excellence (BPE) business line returned revenue of €528 million, up 7 percent (at constant currency) from €499 million in 2010. The Group EBIT margin was up by 50 basis points to 24.5 percent delivering an EBIT of €269 million (€269 million in 2010). Profit after tax was €177 million (€176 million in 2010) slightly over the previous year. Software AG had a total of 5,535 employees as of December 31, 2011 (previous year 5,644). The number of employees in Germany was 1,881 (previous year 2,051).
Business Line Development
The fiscal year 2011 confirmed Software AG's strategy,
with the Business Process Excellence growth segment reporting
an increase in license, maintenance and services revenue to a
record level of €528 million. The BPE business line was again
the main revenue generator of the Group and its net business
result increased to a new record high of €154 million.
"The success of our BPE business in 2011 fully confirms the potential of Business Process technology," said Karl-Heinz Streibich, CEO at Software AG. "To faster develop this new market we will strengthen our sales activities in key markets and increase the efficiency of our go-to-market approach. We are confident that we will replicate the outstanding growth performance in Europe on a global basis."
The Enterprise Transaction Systems (ETS) reported an 8 percent decline in revenue (at constant currency) to €381 million (€420 million in 2010) almost fully offsetting the growth in BPE. The business line felt the effect of fourth quarter conservative investments by customers due to economic uncertainty, after a stable first nine months. As a result, the company could not offset the expected normalization of revenue development in Brazil following the rapid expansion since 2008.
With revenue of €189.2 million (previous year €200.3 million)
in 2011, the IDS Scheer Consulting business contributed about
17 percent of total Software AG revenue. Software AG has
focused on profitability in the consulting business which has
led to a margin increase of 367 basis points.
Fourth quarter
The fourth quarter of 2011 was marked by macroeconomic
uncertainty leading to very cautious customer spending at the
year end. Notwithstanding, both EMEA and DACH saw strong BPE
license growth of approx. 40 percent that could not totally
make up for the decline in the Americas. As planned, ETS
revenue was reduced through a normalization of growth in
Brazil. ETS revenue growth in other regions could not cover
this expected shortfall despite particularly strong growth of
21 percent in EMEA. Overall revenue for the quarter was down
9 percent (at constant currency rates).
Group earnings
The company reported EBIT of €269 million (€268 million in
2010). Through prudent cost management, the EBIT margin was
increased by 50 basis points to 24.5 percent. A continuous
reduction in net debt (minus 64 percent), an increase in
liquidity and significantly reduced financing costs led to an
improved financial result.
These individual components enabled Software AG to raise both pre-tax profit (€259 million, previous year: €254 million.) and net profit (€177 million; previous year: €176 million) to new record levels.
Shareholder's equity was increased by 23.7 percent to €951.5 million (in comparison to 31.12.2011). The equity ratio was raised to 56.6 percent (48.1 percent on the 31.12.2010).
"In the past fiscal year we further strengthened the operational basis of our business," said CFO Arnd Zinnhardt. "Once again we were able to raise process efficiencies and establish a new Group record profit level."
Outlook
Software AG expects growth of 5 to 15 percent in the Business
Process Excellence business line in 2012. The company expects
a revenue fall of 7 to 12 percent in the Enterprise
Transaction Systems business in line with the 2011
performance. The company plans to invest in the expansion of
the BPE business increasing sales and marketing activities in
2012. Software AG expects an EBIT margin of 23 to 24.5
percent for the current fiscal year.
Figures according to IFRS, unaudited
in € Millions | FY 2011 | FY 2010 |
Change | Q4 2011 | Q4 2010 |
Change |
Revenue | 1,098.3 | 1,119.5 | -1%* | 294.0 | 326.7 | -9%* |
Product revenue | 673.9 | 696.8 | -2%* | 189.2 | 222.0 | -14%* |
Consulting und Services | 419.8 | 418.7 | 1%* | 103.4 | 103.7 | 0%* |
Business Lines | ||||||
Business Process Excellence | 527.8 | 499.2 | 7%* | 151.2 | 148.2 | 3%* |
EnterpriseTransaction Systems | 381.3 | 420.0 | -8%* | 99.7 | 133.2 | -24%* |
IDS Scheer Consulting | 189.2 | 200.3 | -5%* | 43.1 | 45.3 | -5%* |
EBIT | 269.2 | 268.6 | 0% | 78.0 | 94.1 | -17% |
as % of revenue | 24.5% | 24.0% | 26.5% | 28.8% | ||
Net income | 177.2 | 175.6 | 1% | 51.9 | 64.7 | -20% |
as % of revenue | 16.1% | 15.7% | 17.7% | 19.8% | ||
Earnings per share (€, basic) | 2.05 | 2.06 | 0% | 0.60 | 0.76 | -21% |
Earnings per share (€, diluted) | 2.03 | 2.05 | -1% | 0.59 | 0.76 | -22% |
About Software AG
Software AG is the global leader in Business Process
Excellence. Our 40 years of innovation include the invention
of the first high-performance transactional database, Adabas;
the first business process analysis platform, ARIS; and the
first B2B server
and SOA-based
integration platform, webMethods.
We offer our customers end-to-end business
process management (BPM) solutions delivering low
Total-Cost-of-Ownership and high ease of use. Our
industry-leading brands, ARIS, webMethods, Adabas, Natural,
CentraSite and IDS Scheer Consulting, represent a unique
portfolio encompassing: process strategy, design, integration
and control; SOA-based integration and data management;
process-driven SAP implementation; and strategic process
consulting and services.
Software AG had revenues of €1.1 billion in 2010 and has more
than 5,400 employees serving 10,000 enterprise and public
institution customers across 70 countries. Our comprehensive
software and services solutions allow companies to
continuously achieve their business results faster. The
company is headquartered in Germany and listed on the
Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 /
SOW).
Software AG - Get There Faster
Software AG | Uhlandstraße 12 | 64297 Darmstadt | Germany
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Contact: Software AG Barbara Koegler Senior Vice President Corporate Communications Uhlandstrasse 12 64297 Darmstadt Germany Tel: +49 6151 92-1574 Fax: +49 6151 92-34-1243 press@softwareag.com http://www.softwareag.com |
or: Software AG Paul Hughes Director Media Relations Uhlandstrasse 12 64297 Darmstadt Germany Tel: +49 6151 92-1787 Fax: +49 6151 92-1623 press@softwareag.com |
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