EANS-Adhoc: Software AG / Full year outlook confirmed despite weaker growth in Q2 2011

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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quarterly report

13.07.2011

Full year outlook confirmed despite weaker growth in Q2 2011

• Negative impact of currency translation lowered stated revenue
• Product revenue in local currency roughly at previous year´s level
• Revenue decline in SAP-implementation in Europe
• Growth of EBIT margin to 22.5-23.0%
• Revenue and earnings forecast for fiscal 2011 confirmed

Software AG, Darmstadt (Frankfurt TecDAX: SOW) achieved total
revenues of approx. EUR256-258 (2010: 267.3) million in the second
quarter of the current fiscal year, based on an initial consolidation
of financial figures. Total revenue at constant currency held steady
at the previous year´s level. Less-favorable foreign currency
translations had a significant impact on stated revenues in
comparison to the corresponding period in 2010 (approx. - EUR10
million). License sales continue to exhibit the weakness seen in
first quarter 2011, and a number of planned licensing agreements in
both product lines (ETS und BPE) failed to close in June. BPE project
services posted double-digit growth in the second quarter, whereas
demand for implementation of SAP products remained below the previous
year´s level. For the second quarter of fiscal 2011, the company now
expects to report services revenue of approx. EUR105-106 (2010:
105.4) million and product revenue of approx. EUR151-152 (2010:
161.9) million, of which licensing revenue will account for EUR57-58
(2010: 68.8) million.

Nevertheless, Software AG expects to increase its EBIT margin for the
second quarter to a level of 22.5-23.0% (2010: 22.0%) because of
improved cost ratios compared to the previous year. The stated EBIT
(IFRS) for Q2 2011 will roughly match the previous year´s result of
EUR58.9 million.

The sales pipeline remains strong and can make up for the lower
licensing revenues of Q2 2011 based on expected license deals and
consulting projects slated for the second half of fiscal 2011. In
addition, management is poised to take action to overcome operating
weaknesses identified in Europe.

On this basis, the company affirms the forecast for the full year
2011 that was published in January, which predicted revenue growth of
5-7%, at constant currency, and a jump in net income of 10-15%.

Full and finalized figures will be published on July 28, 2011.

Further inquiry note:
Otmar Winzig - SVP Investor Relations
Fon: +49 (0) 6151/92-1669
email: otmar.winzig@softwareag.com

end of announcement euro adhoc
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issuer: Software AG
Uhlandstr. 12
D-64297 Darmstadt
phone: +49 (0)6151 92 1899
FAX: +49 (0) 6151 92 1933
mail: investor.relations@softwareag.com
WWW: http://www.softwareag.com
sector: Software
ISIN: DE0003304002
indexes: TecDAX, CDAX, HDAX, Prime All Share, Technology All Share
stockmarkets: official dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover
language: English