Bloomberg News

Software AG Drops as Second-Quarter Sales Miss Analyst Estimates

July 14, 2011

July 14 (Bloomberg) -- Software AG, Germany’s second- largest maker of business software, fell the most in two years in Frankfurt trading after reporting second-quarter sales that missed analysts’ estimates.

Revenue will be 256 million euros ($364 million) to 258 million euros, hurt by currency moves and the unexpected failure to close software-license deals, the Darmstadt-based company said late yesterday. Demand for implementation of products from SAP AG, the world’s largest maker of business-management software, fell from last year, it said. Sales had been seen at 280 million euros, the average estimate in a Bloomberg survey of eight analysts.

The stock fell as much as 6.74 euros, or 16 percent, to 35.32 euros, the biggest intraday drop since April 2009, and traded 12 percent lower at 36.84 euros as of 10:32 a.m.

On July 12, Indian software exporter Infosys Ltd. forecast sales that missed analysts’ estimates as customers held off signing new contracts because of uncertainties in the global economy.

Software AG, which makes software for business transactions and offers consulting services, said it still forecasts growth in full-year sales of as much as 7 percent at constant currencies and net income to increase as much as 15 percent based on a “strong” sales pipeline.

Software AG will report complete second quarter results on July 28 and SAP will report earnings on July 25.

--Editors: Robert Valpuesta, Jerrold Colten.

To contact the reporter on this story: Ragnhild Kjetland in Frankfurt at rkjetland@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong in Berlin at kwong11@bloomberg.net


American Apparel's Future
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus