Software AG

Earnings Release • Apr 8, 2002

News Details

Ad-hoc | 8 April 2002 20:32

Software AG english

Software AG with lower revenue and earnings for the first quarter 2002 Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Software AG with lower revenue and earnings for the first quarter 2002 Darmstadt, April 08, 2002. Based on consolidated preliminary financial data, Software AG’s first-quarter 2002 revenue is expected to total around 116 million euros (previous forecast for Q1 2002 was 124 – 128 m euros; actual Q1 2001 was 128 m euros). The revenue shortfall of 10 percent compared with first quarter 2001 is largely caused by reduced sales of licenses. Other than last year, Software AG could not decouple from the continued weakness of the market, which currently hits many IT companies. First-quarter licensing revenue will range between 24 and 25 million euros (42.6 m euros in Q1 2001, including 4.1 m euros one-time sales of technology). Revenue is below expectations due to the customers’ great reluctance to invest in IT, which at Software AG led to an unprecedented strong postponement of projects of all size, affecting all regions and product segments. A number of larger deals, which were firmly expected for March 2002, did not close but were deferred by the customers on a very short notice. Revenue contribution from maintenance will be at 51 million euros and exceed the previous year’s first-quarter number (41.9 m euros in Q1 2002). Professional services will meet expectations and contribute some 40 million euros (43.9 m euros in Q1 2001). Based on current expectations Software AG’s EBITDA (earnings before interest, tax, depreceation and amortization) is assumed to be approximately 2 – 3 percent of revenue (1.0 percent in Q1 2001 including restructuring expenses of 20.2 m euros). Considering the regular goodwill amortization, Software AG expects to show a slightly negative net result (1.5 m euros net loss in Q1 2001). Software AG has already taken measures to improve profitability. For the current fiscal year the company-wide cost cutting program accounts for reduced operating expenses and a reduction of headcount. end of ad-hoc-announcement (c)DGAP 08.04.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The final results of the first quarter 2002 will be published on April 24, 2002. Software AG will host a conference call tomorrow morning (Tuesday, April 9, 2002). Details will be published on the Software AG investor relations’ web site (http://www.softwareag.com/investor). Further information: Otmar F. Winzig Software AG Uhlandstraße 12 D-64297 Darmstadt Tel.: 06151-92-1541 Fax: 06151-92-1933 press@softwareag.com http://www.softwareag.com ——————————————————————————– WKN: 724264; ISIN: DE0007242646; Index: MDAX Listed: Amtlicher Handel in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 082032 Apr 02