Feeds

New licence and SAP unit sale knackers Software AG's numbers

Q2 revenues down by double digits, profits halved, CEO surprised

  • alert
  • submit to reddit

Intelligent flash storage arrays

Delayed IT projects and offloading the SAP business have dealt Software AG’s business a double blow for its latest quarter.

Germany’s other major software maker today reported a second-quarter revenue drop of 18 per cent to €196m ($263.9m) and net income halved to €14.2m ($19.1m).

Earnings per share was also almost halved to €0.18 ($0.24).

In line with the company's on-prem peers, sales of new software slumped: new licences for the Business Process Excellence (BPE) portfolio was down 24 per cent to €32.7m ($44m) and ETS database licences fell 47 per cent to €17.4m ($19m).

Maintenance of its software was up – again, just like Software AG’s rivals: BPE climbed seven per cent to €51.9m ($61.8m) and ETS rose 11 per cent to €38.3 ($51.5m).

Consulting took a hit, falling six per cent to €47.2m.

The company blamed delays to big ticket project sign-offs for the fall in customers' spending on new Software AG licenses.

Chief executive Karl-Heinz Streibich is reported here to have called the drop in BPE a "surprise."

As for consulting, Software AG's trailing off of money that would have normally come from the company’s SAP consulting unit.

Software AG in June sold the final, European-chunk of its global SAP practices to Scheer Group having flogged the North American and Eastern European units last year. Software AG’s plan is to focus on development, sale and support of its own software instead. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.