AG reports net profits up 43% to US$58.6mn in Q1

- Wednesday, April 27, 2011

AG reports net profits up 43% to US$58.6mn in Q1

German applications developer Software AG (Frankfurt: SOW) posted a 43% increase in net profits, to 40mn euros (US$58.6mn), for the first quarter of 2011, compared with 28mn euros for the same period last year, the company announced in a statement.

AG's quarterly revenues were up 9% year-over-year to 273mn euros.

According to the company, the quarterly figures are the result of cost synergies resulting from a merger with IDS Scheer and the continuing weakness of the euro, compared with the previous year.

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"The successful integration of IDS Scheer AG is reflected in every aspect, not least in the Q1 2011 results. As a technology leader in IT-based business process optimization, we have established a sustainable position in the global market, which we will continue to expand through organic growth and targeted acquisitions," said Karl-Heinz Streibich, CEO of Software AG.

On this basis, the company confirmed its previous forecast of 5-7% revenue growth for full 2011, with net income expected to climb 10-15%.

Use this link to see AG's full financial results.