German business software vendor Software AG reported a sharp rise in second-quarter net income on strong license sales.
Net income increased 21 percent year on year to 19.4 million euros (US$24.3 million as of June 30, the last day in the quarter reported), the Darmstadt, Germany, company said on Friday.
Licensing revenue, a gauge of future growth, climbed 29 percent over the year to 41.3 million euros.
A major contributor to this growth was the company’s Enterprise Transaction Systems (ETS) software, which includes the Adabas and Natural product lines. Licensing revenue for ETS rose 27 percent to 30.5 million euros.
Revenue for Crossvision, a new service-oriented architecture integration software, was up 63 percent to 10.1 million euros.
Total revenue for the group rose 10 percent to 121 million euros from 110.5 million for the same period a year ago.
Software AG, Germany’s second-largest software maker after SAP, raised its full-year forecast for license sales growth to between 22 percent and 25 percent, compared with an earlier forecast of 18 percent to 20 percent growth.
-John Blau, IDG News Service (Dusseldorf Bureau)
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