Software AG Q3 Total Revenue Increase 5%

(RTTNews) - Software AG (STWRY.PK) announced that its Management Board considers the revenue goals from the Management Incentive Program 2011 no longer achievable, due to its value oriented strategy within the past 12 months and the conscious avoidance of acquisitions because of current high price levels in the M&A market environment.

Software AG released its preliminary financial figures for the third quarter, with total revenue increasing 5 percent to EUR 215.9 million from EUR 205.6 million in the year-ago quarter. Product revenue increased by 8 percent to EUR 169.9 million and Maintenance revenue rose 8 percent to EUR 101.0 million. The company's license revenue rose by 7 percent to EUR 68.9 million.

Earnings before interest and tax went up reaching a level between EUR 66 million and EUR 67 million, versus EUR 49.1 million in the last year quarter. The operating earnings, EBITA, non-IFRS, increased by more than 11 percent year-on-year to approximately EUR 70 million, equals an operating margin of over 32 percent.

Software AG also updated its forecast for fiscal 2015, due to the business development of the first nine months and based on the projected pipeline of the fourth quarter. The company now expects a revenue increase for the Digtial Business Platform between 0 and 3 percent, versus prior growth rage of 6 to 12 percent.