Q2 Provides Boost to Software AG

The IT infrastructure software provider reported maintenance gains strong enough to overcome slightly weaker license and services sales.


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Posted on Jul 24, 2009

Fresh off a deal to buy IDS Scheer for €477 million, Software AG this week revealed upbeat second-quarter numbers, as both the top and bottom lines improved year over year.

Total revenue for the IT infrastructure and business process management vendor rose 5% to $176.4 million in the period ended June 30, compared with $168.8 million in the prior-year quarter. The sales boost trickled down to the bottom line, as net income grew 7% to $28.9 million, from last year’s $27.1 million.

The revenue rise came courtesy of maintenance sales, which increased 20% to $73.9 million. That buoyant performance was mollified by slower license sales — off 3% to $59.8 million — and services revenue, which fell 7% to $41.7 million.

Software AG maintains two business divisions: Enterprise Transaction Systems and its webMethods unit, which markets its flagship business process management (BPM) software. During the second quarter, ETS enjoyed a 10% spike in revenue, taking in $100.9 million compared with $92.1 million during the previous Q2. Meanwhile, webMethods revenue sagged 2% to $75.5 million.

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