Software AG recorded a significant increase in revenues in the fourth quarter of 2010. At €326.7 million, total revenues were 12 per cent higher than the same quarter of the previous year (€292.1 million). The product business picked up sharply in the fourth quarter in particular, totaling €222.0 million and exceeding the figure for the same period of the previous year (€181.1 million) by 23 per cent.
Significant revenue increases, largely owing to an increased number of big deals and initial cross-selling successes, followed the successful integration of IDS Scheer AG and its software product portfolio. Revenue and earnings also benefited from currency translation effects, especially in the Americas.
Software AG’s growth strategy seems to paying rich dividends and the new business — which consists of innovative software products for integrating business applications and processes termed as ‘Business Process Excellence’ (BPE), expanded further in the fourth quarter.
Marco Gerazounis, Senior Vice President, Software AG Middle East, said: “We have obtained higher results in the Middle East in the past year and this has contributed to Software AG’s impressive overall business performance. We look forward to building on this momentum to continue strengthening our market position in the region.” The upswing in demand noted in the Americas in the first half of 2010 carried on in the second half of the year as well.
Buoyed by the large markets of the United States and Brazil, Software AG experienced double-digit growth rates in this region in the fourth quarter. Business in Germany, Australia, and the Middle East also developed at a rate that was significantly above the Group average.
Growth in product business The Business Process Excellence (BPE) business line, which encompasses revenue from licenses, maintenance and services for all integration and process software products (webMethods and ARIS), achieved growth of 10 per cent in Q4 2010, with total revenues of €148.2 million.
