EANS-Adhoc: Software AG / Weak sales in the US leads to drop in revenue in the fourth quarter of 2011 (full-year revenue remains stable)

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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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10.01.2012

• Business Process Excellence (BPE) division: strong growth in Europe
offset lower revenue in the U.S. • Enterprise Transactions Systems
(ETS) division: overall customer reluctance to invest dampened
efforts to offset the expected structural reduction of sales in
Brazil • Q4 total revenue was about 8 to 10 percent below 2010 (at
constant currency rates) • Profit after tax in the region of EUR45 to
EUR50 million for the quarter is expected

Darmstadt, Germany, January 10, 2012, Software AG (Frankfurt TecDAX:
SOW), after an initial consolidation of the revenue and earnings
estimates of the subsidiaries for the fourth quarter 2011, announced
total revenues of approximately EUR290 to EUR295 million (previous
year EUR326.7 million). At constant currency rates, total fourth
quarter revenue was about 8 to 10 percent below the previous year´s
figure and fourth quarter license revenue of about EUR90 to EUR95
million (previous year EUR127.7), about 25 to 27 percent below.

In the fourth quarter, the growth segment BPE (innovative software
for process integration and automation) license revenue, in both DACH
and in the EMEA region increased by about 40 percent. This success
was offset by a significant decline in the U.S., so that the total
revenue of the division of EUR145 to EUR148 million remained at the
2010 level, at constant currency rates.

The usual seasonal boost (budget flush) in ETS sales in the fourth
quarter did not materialize. Presumably, the predicted economic
slowdown meant that customers residual budget, in contrast to normal
years, was not invested in capacity expansion. Therefore, the stable
ETS revenues in Europe and the increased ETS revenues in the U.S. did
not fully compensate for the expected structural effects on sales in
Brazil (the transfer of local customers to the direct sale model was
completed in 2010). As a result, total ETS revenue in the fourth
quarter of about EUR100 to EUR103 million (previous year EUR133.2
million) did not match the stable development of the first nine
months. ETS product revenue of EUR83 to EUR85 million (previous year
EUR115.9) was further under last year's fourth quarter high value
than planned, a quarter also characterized by exceptionally large
contracts.

The lower license revenues are not fully reflected in Group earnings
due to the established company revenue-related compensation schemes.
Software AG therefore expects profit after tax of EUR45 to EUR50
million for the fourth quarter.

For the full year 2011, Software AG achieved a turnover of nearly
EUR1.1 billion, the same level as 2010, at constant currency rates.
BPE product revenue (licenses and maintenance) grew by 6 to 7 percent
while the ETS division reported a decline of 9 to 10 percent.

The full-year 2011 profit after tax is expected to be around the same
level as the previous year (EUR175.6 million).

in EUR million Q4 2011 prel. Q4 2010 Delta % Delta % acc
BPE Product Revenue 97 to 100 100.2 0% to -3% -1% to -2%
ETS Product Revenue 83 to 85 115.9 -27% to -28% -26% to -27%
Total Revenue 290 to 295 326.7 -10% to -11% -8% to -10%
Net Income 45 to 50 64.7 -23% to -30% n/a

Software AG will give further details in a telephone conference call
on 10th January 2012, at 11:00 CET.

Software AG will publish its full earnings on January 24th, 2012.

Further inquiry note:
Frau Antje Drommershausen
Investor Relations Manager
Tel.: +49 6151 92-1899
E-Mail: Antje.Drommershausen@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: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover
language: English