Software AG makes progress with corporate restructuring – earnings fall

Software AG

The technology company is repositioning itself.

(Photo: dpa)

Berlin The Software AG is making progress in its corporate restructuring. That is why the annual forecast that was cut in April due to the Corona crisis will be increased in some areas despite the recent slump in sales, shared the number two in Germany SAP on Wednesday with.

Software AG is now somewhat more confident about the digital business and database business (Adabas & Natural), but still expects a significant decline in the operating margin to 20 to 22 percent (2019 29.2 percent). The Darmstadt-based MDax company wants to focus its business more on the cloud and thus on recurring sales through subscriptions instead of licenses that are paid for once, and must take some money in hand for this.

A hacker attack in October delayed the publication of the final quarterly figures. It was now contained and the internal systems were working as usual, it said. Software AG did not provide any further details.

In the third quarter, sales collapsed by 17 percent to 185.4 million euros, despite orders up by five percent. The operating result even fell by 58 percent to just under 25 million euros. The company confirmed its medium-term goal of generating sales of one billion euros by 2023.

More: Many SAP customers freeze investments


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