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13.07.2016 22:33:46
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DGAP-News: Software AG
DGAP-News: Software AG Raises 2016 Full Year Guidance
13.07.2016 / 22:33 The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
SOFTWARE AG RAISES 2016 FULL YEAR GUIDANCE Strong business development and increased profitability in the first half 2016
- Digital Business Platform grows +5 percent in H1
- Adabas & Natural up +7 percent in H1
- Product revenue improves +6 percent in H1
- Consulting business climbs by +4 percent in H1
- Total revenue up +5 percent in H1
- EBIT margin jumps by 600 basis points to 21.6 percent in H1
- Operating margin increases 390 basis points to 28.1 percent in H1
[Please note: All revenue-related percentage figures in the text are net of currency] Darmstadt, Germany, July 13, 2016 - Software AG (Frankfurt TecDAX: SOW) today announced its preliminary financial figures (IFRS, preliminary) for the second quarter and the first half of fiscal 2016. The company showed growth in all key performance parameters. Based on the positive business development in Q2 and the first half of fiscal 2016 and the strong project pipeline for the second half, Software AG raised its outlook for the full year. In the first six months of the year, Software AG's largest business line Digital Business Platform (DBP) improved by +5 percent, in-line with expectation. The database business Adabas & Natural (A&N) developed significantly and grew by +7 percent in the first half of fiscal 2016 - licenses even improved by +24 percent in the same period. Driven by this revenue increase and a higher sales efficiency, the company increased its operating earnings margin (EBITA, non-IFRS) by +390 basis points. The EBIT improved by +42 percent reaching EUR88.7 million (previous year: EUR62.5 million). This positive earnings development, already witnessed in the first quarter, continued in the second quarter. In Q2, the company also increased its EBIT margin of more than +5 percentage points, reaching EUR43.3 million (EUR33.2 million) - an increase of more than +30 percent. Profit after tax increased in the second quarter by more than +40 percent while earnings per share improved by more than +46 percent.
"Software AG's relevance in the global IT market is constantly growing: Our technological leadership, our new Go-to-Market-Model and our strategic focus on profitable growth forms the backbone and foundation of our positive business development. Excellent customer feedback and a strong project pipeline underline our strategy." Karl-Heinz Streibich, CEO of Software AG.
"We achieved excellent results not only in the second quarter but also in the first six months of 2016. We managed to maintain or even increase the high margins of every business line. In addition, we have also achieved a record free cash flow. Our financial figures make me confident for Software AG's future business development." Arnd Zinnhardt, CFO of Software AG.
Development of the business divisions in H1
The Digital Business Platform (DBP) had license revenue of EUR70.6 million (2015: EUR68.1 million) in H1-a plus of 6 percent over the previous year. Maintenance revenues amounted to EUR124.4 million (2015: EUR122.7 million) in the first half, an increase of +4 percent. Total DBP product revenue was up +5 percent in H1 reaching a total of EUR195.0 million (2015: EUR190.8 million).
The Adabas & Natural (A&N) business line recorded total product revenue of EUR116.0 million (2015: EUR112.9 million) in H1, representing growth of +7 percent. While maintenance revenues remained stable with a plus of 1 percent at EUR77.6 million (2015: EUR80.7 million), license revenues jumped to EUR38.0 million(2015: EUR31.9 million) in the first half-a growth of +24 percent.
Revenues in the Consulting line of business climbed by +5 percent to reach EUR98.6 million (2015: EUR96.0 million) in H1.
Total revenue and earnings development in H1
Software AG's total revenue in the first six month of fiscal 2016 was EUR409.6 million (2015: EUR399.7 million), an increase of +5 percent. The company's product revenue (licenses + maintenance) was up +6 percent in the first half reaching EUR310.6 million (2015: EUR303.4 million). The groups license revenue contributed with EUR108.6 million (2015: EUR100.1 million), representing a +11 percent rise. The group's maintenance revenue amounted to EUR202.0 million (2015: EUR203.3 million) - a growth of +3 percent at constant currency.
The company's earnings before interest and all taxes (EBIT) was up +42 percent in the first half, reaching EUR88.7 million (2015: EUR62.5 million). Correspondingly, the EBIT margin jumped by 600 basis points, reaching 21.6 percent in H1. The operating earnings (EBITA, non-IFRS) increased by +19 percent reaching EUR114.9 million (2015: EUR96.7 million). Accordingly, the operating earnings margin (non-IFRS) climbed 390 basis points to 28.1 percent.
Outlook 2016
Based on the positive business development in the first half 2016 and the strong project pipeline in the second half, Software AG raised its outlook for the full year 2016. The company increased its operating profit margin (EBITA, non-IFRS) to reach +30.5 to +31.5 percent (prior guidance: +30.0 to +31.0 percent). For the database business Adabas & Natural (A&N), the Group expects a significantly more stable development and a product revenue adjustment between -2 and -6 percent at constant currency over the previous year (prior guidance: -4 to -8 percent). The company's product revenue outlook 2016 for the Digital Business Platform (DBP) remains unchanged with an expected currency-adjusted increase of between +5 and +10 percent over the previous year.
###
Key Figures for First Half 2016 (IFRS, unaudited)
in EUR millions H1/2016 H1/2015 ? in % net of currency Total revenue 409.6 399.7 +5 Product revenue 310.6 303.4 +6 Maintenance revenue 202.0 203.3 +3 License revenue 108.6 100.1 +11 Digital Business Platform 195.0 190.8 +5 DBP maintenance 124.4 122.7 +4 DBP licenses 70.6 68.1 +6 Adabas & Natural 116.0 112.9 +7 A&N maintenance 77.6 80.7 +1 A&N licenses 38.0 31.9 +24 Consulting 98.6 96.0 +4 in EUR millions H1/2016 H1/2015 ? in % EBIT* 88.7 62.5 +42 as % of total revenue 22% 16% Operating Earnings (EBITA, 114.9 96.7 +19 non-IFRS) ** as % of total revenue 28% 24% Net income (IFRS) 57.7 38.6 +49
* = 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
Key Figures for Q2 2016 (IFRS, unaudited)
in EUR millions Q2/2016 Q2/2015 ? in % net of currency Total revenue 203.4 205.6 +2 Product revenue 152.6 157.1 +1 Maintenance revenue 103.1 103.6 +4 License revenue 49.6 53.5 -6 Digital Business Platform 100.5 99.8 +4 DBP maintenance 62.5 62.7 +3 DBP licenses 38.0 37.0 +4 Adabas & Natural 52.3 57.5 -5 A&N maintenance 40.6 40.9 +5 A&N licenses 11.6 16.5 -29 Consulting 50.4 48.3 +7 in EUR millions H1/2016 H1/2015 ? in % EBIT* 43.3 33.2 +30 as % of total revenue 21% 16% Operating Earnings (EBITA, 55.8 48.6 +15 non-IFRS) ** as % of total revenue 27% 24% Net income (IFRS) 28.2 19.9 +42
* = 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
The full set of key figures will be published on July 20, 2016 on Software AG's corporate website. 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 4,300 employees, is active in 70 countries and had revenues of EUR873 million in 2015.
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 Senior Vice President Corporate Communications Phone: +49 (0) 6151 92 2070 Mobile: +49 (0) 64 911 317 E-Mail: byung-hun.park@softwareag.comContact:
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13.07.2016 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
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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, Hanover, Munich, Stuttgart, Tradegate Exchange; Terminbörse EUREX; London, SIX End of News DGAP News Service ---------------------------------------------------------------------------
482153 13.07.2016
DGAP-News: Software AG / Key word(s): Half Year Results/Change in Forecast Software AG Raises 2016 Full Year Guidance
13.07.2016 / 22:33 The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
PRESS RELEASE
SOFTWARE AG RAISES 2016 FULL YEAR GUIDANCE Strong business development and increased profitability in the first half 2016
- Digital Business Platform grows +5 percent in H1
- Adabas & Natural up +7 percent in H1
- Product revenue improves +6 percent in H1
- Consulting business climbs by +4 percent in H1
- Total revenue up +5 percent in H1
- EBIT margin jumps by 600 basis points to 21.6 percent in H1
- Operating margin increases 390 basis points to 28.1 percent in H1
[Please note: All revenue-related percentage figures in the text are net of currency] Darmstadt, Germany, July 13, 2016 - Software AG (Frankfurt TecDAX: SOW) today announced its preliminary financial figures (IFRS, preliminary) for the second quarter and the first half of fiscal 2016. The company showed growth in all key performance parameters. Based on the positive business development in Q2 and the first half of fiscal 2016 and the strong project pipeline for the second half, Software AG raised its outlook for the full year. In the first six months of the year, Software AG's largest business line Digital Business Platform (DBP) improved by +5 percent, in-line with expectation. The database business Adabas & Natural (A&N) developed significantly and grew by +7 percent in the first half of fiscal 2016 - licenses even improved by +24 percent in the same period. Driven by this revenue increase and a higher sales efficiency, the company increased its operating earnings margin (EBITA, non-IFRS) by +390 basis points. The EBIT improved by +42 percent reaching EUR88.7 million (previous year: EUR62.5 million). This positive earnings development, already witnessed in the first quarter, continued in the second quarter. In Q2, the company also increased its EBIT margin of more than +5 percentage points, reaching EUR43.3 million (EUR33.2 million) - an increase of more than +30 percent. Profit after tax increased in the second quarter by more than +40 percent while earnings per share improved by more than +46 percent.
"Software AG's relevance in the global IT market is constantly growing: Our technological leadership, our new Go-to-Market-Model and our strategic focus on profitable growth forms the backbone and foundation of our positive business development. Excellent customer feedback and a strong project pipeline underline our strategy." Karl-Heinz Streibich, CEO of Software AG.
"We achieved excellent results not only in the second quarter but also in the first six months of 2016. We managed to maintain or even increase the high margins of every business line. In addition, we have also achieved a record free cash flow. Our financial figures make me confident for Software AG's future business development." Arnd Zinnhardt, CFO of Software AG.
Development of the business divisions in H1
The Digital Business Platform (DBP) had license revenue of EUR70.6 million (2015: EUR68.1 million) in H1-a plus of 6 percent over the previous year. Maintenance revenues amounted to EUR124.4 million (2015: EUR122.7 million) in the first half, an increase of +4 percent. Total DBP product revenue was up +5 percent in H1 reaching a total of EUR195.0 million (2015: EUR190.8 million).
The Adabas & Natural (A&N) business line recorded total product revenue of EUR116.0 million (2015: EUR112.9 million) in H1, representing growth of +7 percent. While maintenance revenues remained stable with a plus of 1 percent at EUR77.6 million (2015: EUR80.7 million), license revenues jumped to EUR38.0 million(2015: EUR31.9 million) in the first half-a growth of +24 percent.
Revenues in the Consulting line of business climbed by +5 percent to reach EUR98.6 million (2015: EUR96.0 million) in H1.
Total revenue and earnings development in H1
Software AG's total revenue in the first six month of fiscal 2016 was EUR409.6 million (2015: EUR399.7 million), an increase of +5 percent. The company's product revenue (licenses + maintenance) was up +6 percent in the first half reaching EUR310.6 million (2015: EUR303.4 million). The groups license revenue contributed with EUR108.6 million (2015: EUR100.1 million), representing a +11 percent rise. The group's maintenance revenue amounted to EUR202.0 million (2015: EUR203.3 million) - a growth of +3 percent at constant currency.
The company's earnings before interest and all taxes (EBIT) was up +42 percent in the first half, reaching EUR88.7 million (2015: EUR62.5 million). Correspondingly, the EBIT margin jumped by 600 basis points, reaching 21.6 percent in H1. The operating earnings (EBITA, non-IFRS) increased by +19 percent reaching EUR114.9 million (2015: EUR96.7 million). Accordingly, the operating earnings margin (non-IFRS) climbed 390 basis points to 28.1 percent.
Outlook 2016
Based on the positive business development in the first half 2016 and the strong project pipeline in the second half, Software AG raised its outlook for the full year 2016. The company increased its operating profit margin (EBITA, non-IFRS) to reach +30.5 to +31.5 percent (prior guidance: +30.0 to +31.0 percent). For the database business Adabas & Natural (A&N), the Group expects a significantly more stable development and a product revenue adjustment between -2 and -6 percent at constant currency over the previous year (prior guidance: -4 to -8 percent). The company's product revenue outlook 2016 for the Digital Business Platform (DBP) remains unchanged with an expected currency-adjusted increase of between +5 and +10 percent over the previous year.
###
Key Figures for First Half 2016 (IFRS, unaudited)
in EUR millions H1/2016 H1/2015 ? in % net of currency Total revenue 409.6 399.7 +5 Product revenue 310.6 303.4 +6 Maintenance revenue 202.0 203.3 +3 License revenue 108.6 100.1 +11 Digital Business Platform 195.0 190.8 +5 DBP maintenance 124.4 122.7 +4 DBP licenses 70.6 68.1 +6 Adabas & Natural 116.0 112.9 +7 A&N maintenance 77.6 80.7 +1 A&N licenses 38.0 31.9 +24 Consulting 98.6 96.0 +4 in EUR millions H1/2016 H1/2015 ? in % EBIT* 88.7 62.5 +42 as % of total revenue 22% 16% Operating Earnings (EBITA, 114.9 96.7 +19 non-IFRS) ** as % of total revenue 28% 24% Net income (IFRS) 57.7 38.6 +49
* = 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
Key Figures for Q2 2016 (IFRS, unaudited)
in EUR millions Q2/2016 Q2/2015 ? in % net of currency Total revenue 203.4 205.6 +2 Product revenue 152.6 157.1 +1 Maintenance revenue 103.1 103.6 +4 License revenue 49.6 53.5 -6 Digital Business Platform 100.5 99.8 +4 DBP maintenance 62.5 62.7 +3 DBP licenses 38.0 37.0 +4 Adabas & Natural 52.3 57.5 -5 A&N maintenance 40.6 40.9 +5 A&N licenses 11.6 16.5 -29 Consulting 50.4 48.3 +7 in EUR millions H1/2016 H1/2015 ? in % EBIT* 43.3 33.2 +30 as % of total revenue 21% 16% Operating Earnings (EBITA, 55.8 48.6 +15 non-IFRS) ** as % of total revenue 27% 24% Net income (IFRS) 28.2 19.9 +42
* = 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
The full set of key figures will be published on July 20, 2016 on Software AG's corporate website. 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 4,300 employees, is active in 70 countries and had revenues of EUR873 million in 2015.
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 Senior Vice President Corporate Communications Phone: +49 (0) 6151 92 2070 Mobile: +49 (0) 64 911 317 E-Mail: byung-hun.park@softwareag.comContact:
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13.07.2016 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; Terminbörse EUREX; London, SIX End of News DGAP News Service ---------------------------------------------------------------------------
482153 13.07.2016
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