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Software AG, Europe’s largest system software provider, has again reported significant revenue growth for the fourth quarter of 2001. At 160 million euros, total revenue was up 36 percent from the same quarter last year (117 m euros). Based on consolidated preliminary (unaudited) financial data, full-year 2001 revenue totalled 588 million euros (417 m euros in 2000). This revenue growth was due mainly to the larger US-business, after Software AG's acquisition of its former distribution partner on February 1, 2001.



The fourth-quarter operational earnings margin (EBITDA before acquisition-related extraordinary charges) is significantly over 20 percent and is expected to reach the targeted 20 percent also for the full year.



In spite of on-going unfavourable market conditions, Software AG’s results met forecasts for the fourth quarter. With regard to revenue and operational earnings, the fourth quarter of 2001 was the best quarter in Software AG's 30-plus-year history. At 160 million euros, fourth-quarter revenue (+36 % from last year) rose 13 percent from the third quarter of 2001.



Full-year 2001 revenue from software licenses also grew significantly, up 50 percent to 199 million euros (133 million euros in 2000), mainly due to Software AG’s acquisition in the USA. Maintenance revenue showed record-breaking performance, growing 53 percent to 196 million euros (128 m euros in 2000). With a strong focus on higher margin business, the service division contributed 190 million euros (155 m euros) to overall revenue in 2001. This represents a growth rate of 23 percent for this division.



Geoff Cooke, UK and Ireland Country Manager, Software AG, comments, “Despite the general downward trend in the IT industry Software AG’s quarterly results have been good throughout the year. This continued success is due to the solid foundations upon which Software AG is built and its leadership in XML. We are ahead of our major competitors in the field of XML. The fact that we have just had our best quarter in the company’s 30 year history is proof that Software AG is on the right fast track.”



Software AG will publish further details of full-year 2001 results on
January 31, 2002.




about Software AG


Software AG, Darmstadt, Germany, is Europe’s largest system software provider and a major global player offering cutting edge technology for data management and electronic business. Since 1998 the company has focused its development activities on XML products for the Internet. With about 3,500 employees and representative offices in over 70 countries, Software AG has achieved revenues of 588 million euros in 2001. Its distribution and technology partners include market leaders such as IBM, Microsoft and Hewlett-Packard as well as innovative IT solutions providers like Extensibility, Softquad and Citrix. Software AG’s products control the central IT processes of thousands of renowned companies worldwide to include Lufthansa, ZDF, Dresdner Bank AG, DaimlerChrysler, Deutsche Bahn AG (German Rail), BP and VIAG Interkom. Software AG is listed on the Frankfurt Stock Exchange (MDAX, Security identification number 724264 / SOWGn.F).


More information at http://www.softwareag.co.uk



For more information on Software AG, please contact:



Sam zu Verl
Solutions Marketing Manager
Software AG
Tel: 01344 403 800


Richard Bennett /Tamsin Keynton
MCC International
Tel: 01962 888100
Fax: 01962 888125
E-mail: richard.bennett@mccint.com
tamsin.keynton@mccint.com


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