Earnings Rise at Software AG on Strong Sales

First-quarter net income at Germany’s Software AG soared 23 percent, bolstered by strong software license sales, the database and integration software vendor said Friday.

Net income rose to 14.4 million euros (US$17.4 million as of March 31, the last day of the period being reported) from 11.7 million euros in the same period a year ago.

Licensing revenue was up 23.7 percent to 33.4 million euros in the first quarter, compared to 27 million euros a year earlier. Maintenance revenue rose 8.7 percent to 47.5 million euros from 43.7 million.

Total revenue increased 13.5 percent to 113.8 million euros from 100.3 million a year earlier.

Both of the company’s business lines contributed to revenue growth. Revenue from its Enterprise Transaction Systems line was up 14.5 percent to 86.1 million euros, while the crossvision products grew 18.1 percent to 22.6 million euros.

Software AG, which is located in Darmstadt, Germany, reiterated its expectation that full-year revenue will grow 10 percent. The company said the growth will be largely driven by licensing revenue, which is expected to increase by 18 percent to 20 percent for the year.

-John Blau, IDG News Service

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