Earnings Release • Jan 19, 2016
Earnings Release
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Ad-hoc | 19 January 2016 00:46
Software AG: Software AG: Preliminary Results for Q4 and full year 2015 – Outlook for the fiscal year 2016
Software AG / Key word(s): Final Results/Forecast
19.01.2016 00:46
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
AD HOC DISCLOSURE ACCORDING TO § 15 WPHG
Software AG: Preliminary Results for Q4 and full year 2015 - Outlook for
the fiscal year 2016
Darmstadt, January 19, 2016 - Software AG (Frankfurt TecDAX: SOW) released
preliminary results for the fourth quarter and full-year 2015
* Impact of Go-to-Market transformation drives improvements in all key
performance parameters
* License revenue for the Digital Business Platform up 23 percent in Q4
* Operating margin (EBITA non-IFRS) reached historic record in Q4 of 36
percent
* Highest Group maintenance revenue in company's history, 10 percent up
year-on-year
* Full-year operating earnings (EBITA non-IFRS) at EUR259.1 million
exceeded outlook 2015
* Outlook 2016: 5 - 10 percent digital business growth at constant currency
[If not stated otherwise, all figures rounded including potential currency
impacts.]
Key Figures for Q4 2015 (IFRS, unaudited)
in EUR millions Q4/2015 Q4/2014 ∆ in %as stated
Total revenue 257.5 247.3 +4
Product revenue 205.6 195.0 +5
Maintenance revenue 102.6 96.4 +6
License revenue 103.0 98.6 +4
Digital Business
Platform 137.6 118.1 +17
as % of total revenue 53% 48%
DBP maintenance 63.6 57.9 +10
DBP licenses 74.0 60.2 +23
Adabas & Natural 68.2 77.0 -11
as % of total revenue 27% 31%
A&N maintenance 39.1 38.4 +2
A&N licenses 28.9 38.4 -25
Consulting 51.7 52.2 -1
as % of total revenue 20% 21%
Sales & marketing
expenses -71.3 -71.9 -1
Research & development
expenses -27.1 -28.1 -4
EBIT* 80.1 71.4 +12
as % of total revenue 31% 29%
Operating Earnings
(EBITA, non-IFRS)** 92.2 88.4 +4
as % of total revenue 36% 36%
* = consolidated net income + income tax + other tax + financial result
** = EBITA adjusted for reduction of acquisition-related product revenue by
purchase price allocation, other acquisition effects, share-based payment,
restructuring/severance payments and operating income of divested units
Software AG's total revenue in the quarter under review was four percent up
resulting in a growth in profitability of 12 percent. The company's profit
before interest and taxes EBIT in the fourth quarter was EUR80.1 million
(Q4 2014: EUR71.4 million) corresponding to an EBIT margin of 31.1 percent
in Q4 (Q4 2014: 28.9 percent).
The operating earnings (EBITA, non-IFRS) increased strongly due to a higher
product revenue, improved sales mix, higher efficiency and active cost
management. Software AG's operating earnings (EBITA, non-IFRS) increased to
EUR92.2 million (Q4 2014: EUR88.4 million) up four percent. Accordingly,
the operating earnings margin (non-IFRS) reached 35.8 percent (Q4 2015:
35.7 percent).
EBIT in fiscal 2015 was EUR209.4 million (FY 2014: EUR176.0 million), an
increase of 19 percent. This corresponds to an EBIT margin of 24.0 percent
(FY 2014: 20.5 percent). The operating earnings (EBITA non-IFRS) rose to
EUR259.1 million (FY 2014: EUR239.3) and the operating earnings margin rose
to 29.7 percent (2014: 27.9 percent).
Key Figures for FY 2015 (IFRS, unaudited)
in EUR millions 2015 2014 ∆ in %as stated
Total revenue 873.1 857.8 +2
Product revenue 678.8 641.4 +6
Maintenance revenue 406.9 371.3 +10
Licenses revenue 271.9 270.1 +1
Digital Business
Platform 431.5 394.5 +9
as % of total revenue 49% 46%
DBP maintenance 248.0 215.7 +15
DBP licenses 183.5 178.9 +3
Adabas & Natural 248.0 245.3 +1
as % of total revenue 28% 29%
A&N maintenance 158.9 153.7 +3
A&N licenses 88.4 91.0 -3
Consulting 193.4 195.8 -1
as % of total revenue 22% 23%
Sales & marketing
expenses -268.0 -263.1 +2
Research & development
expenses -106.4 -109.1 -2
EBIT* 209.4 176.0 +19
as % of total revenue 24% 21%
Operating Earnings
(EBITA, non-IFRS) 259.1 239.3 +8
as % of total revenue 30% 28%
* = consolidated net income + income tax + other tax + financial result
** = EBITA adjusted for reduction of acquisition-related product revenue by
purchase price allocation, other acquisition effects, share-based payment,
restructuring/severance payments and operating income of divested units
With the Q4 financial results, Software AG has achieved its 2015 revenue
goals, as announced on October 13, 2015. At con¬stant currency, the DBP
revenue grew by 2 percent, which is above the mid-point of the company's
guided corridor of between +0 and +3 percent. A&N at constant currency
represented a decrease of -5 percent for the total year, in-line with the
guided -4 to -6 percent corridor. With 29.7 percent, the operating earnings
margin (EBITA, non-IFRS) even exceeded the outlook of 28 to 29 percent.
Based on the increasing market relevance of the company's portfolio and the
further expected positive impacts of its Go-to-Market strategy, Software AG
is now targeting a cur¬rency-adjusted increase of DBP product revenue of
between +5 and +10 percent for 2016. For A&N, the Group expects
currency-adjusted sales to decline between -4 and -8 percent over the
previous year. Moreover, the company expects further improvement of its
operating profit margin (EBITA, non-IFRS) reaching 30 to 31 percent.
19.01.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: Software AG
Uhlandstraße 12
64297 Darmstadt
Germany
Phone: +49 (0)6151 92-1900
Fax:
E-mail: [email protected]
Internet: www.softwareag.com
ISIN: DE0003304002
WKN: 330400
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of Announcement DGAP News-Service
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