Softare AG, listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW) posted total revenues of €483 million (unaudited) in 2006.
Based in Darmstadt, Germany, the provider of IT infrastructures for service-oriented architectures (SOAs) software and services and present in 70 countries with more than 2,600 employees is releasing financial figures relating to its final quarter.
In the fiscal year 2006, Software AG increased its revenues by 10% to €483.0 million. At constant currency rates, this represents an 11% rise and exceeds the company’s target. In the same period, earnings before interest and taxes (EBIT) increased by 15% to €111.2 million. Software AG was able to improve its operating margin to an all-time high of 23% – an increase of 100 basis points from the previous year. At €73.2 million, consolidated income was 18% higher than in 2005.
“Through the positive overall results for 2006 we have achieved our ambitious goals,” says Karl-Heinz Streibich, CEO of Software AG.
Software AG says it achieved significant growth in revenues in fiscal 2006. Worldwide, customers purchased software licenses and services worth €483.0 million. According to the company this was 10% higher than in the previous year (11% at constant currency rates). The high margin software license business exhibited the strongest growth of all revenue segments increasing by 26% (28% at constant currency rates) to €165.7 million (2005: €131.6 million). Revenue from licenses rose to more than 34% of the total (2005: 30%).
In the classic database business (ETS, Enterprise Transaction Systems), license revenues grew 27% (29% at constant currency rates) from €96.0 million to €121.7 million. The new crossvision product line, for the company-wide integration of business processes on differing systems, exhibited dynamic growth. License revenues from Software AG’s own products increased from €26.0 million to €41.6 million. This represents a 60% expansion (63% at constant currency rates), informs the company
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