Software AG
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.] 1. Preliminary key figures for the 4th quarter 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). 2. Preliminary Key Figures for FY 2015 (IFRS, unaudited) 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 3. Goals Achieved 2015 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. 4. Outlook 2016 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: Investor.Relations@softwareag.com 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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