Software AG is off to a strong start in 2010, continuing on the growth path it began in 2003. First-quarter total revenue was posted at €250,3-million, a 51% increase year-on-year. In the same period, product revenue grew 20% to €146,7-million.
Free cash flow, which had been climbing progressively over the past few quarters, dynamically rose by 39% in the first quarter. This expanded the company’s capability to further drive growth. The slight upswing in IT demand that became apparent early in the year had a positive impact on the first quarter.
The company expects an increased volume of large-scale projects in the process innovation division and confirms its outlook for the fiscal year.
“Our continuous growth is proof that Software AG is well positioned globally,” states Software AG CEO, Karl-Heinz Streibich. “By focusing on excellent processes we have delivered exactly what customers need. Integration with IDS Scheer is progressing according to plan, and, together, we are breaking new ground in process innovation.”
In South Africa, the local office has closed the first quarter 2010 with licence renewals and updates, as well as new name deals, that have enabled the company to exceed revenue targets.
“After a successful FY 2009, we are delighted to see this trend and customer confidence continue into 2010,” says Emma Murray, country manager and acting senior vice-president South Africa. “In fact there’s a growing awareness that modernizing and updating existing data systems is preferable and more cost effective than then unknown of rewrites or ‘rip and replace’ solutions.”