Software AG report on first quarter net profit, up by 9% to $37.3m

Software AG cited improved sales and a recovery in demand for information technology services Tuesday, as its first-quarter net profit rose 9 percent.

The software maker based in Darmstadt posted a net profit of euro28 million ($37.3 million) in the January-March period compared with euro25.6 million a year earlier. Revenues rose 51 percent to euro250.3 million in the quarter compared with euro165.3 million a year earlier.

Of those figures, the company’s maintenance revenue, a key barometer of future business, was up 17 percent to euro85.4 million.

Revenues were up across the board among Software’s units, including WebMethods, which includes business process management applications, which saw a 9-percent increase in revenue to euro81.4 million.

“Our continuous growth is proof that Software AG is well positioned globally,” said Software Chief Executive Karl-Heinz Streibich. “By focusing on excellent processes we have delivered exactly what customers need.”

Software bought IDS Scheer AG in 2009 in a euro490 million deal.

Software is Germany’s second largest software company after SAP AG. It makes operational software for businesses, governments, and health care and educational groups.

It acquired IDS to help increase its market presence and global competitiveness, creating a company with more than 6,000 employees and with over euro1 billion in revenue.

Scheer has American offices in Atlanta, Georgia; Berwyn, Pennsylvania; and Mountain View, California.

Streibich said integrating IDS into Software was “progressing according to plan, and, together, we are breaking new ground in process innovation.”

Looking ahead, Software said that despite the “persistently difficult economic climate” there has been an upswing in demand and interest for its software and maintenance products.

Software reiterated its outlook for 2010, adding that it expects full-year revenue to rise between 25 percent and 30 percent and net profit to rise by between 8 and 12 percent.

http://www.softwareag.com

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