Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOFTWARE AG. We currently have 9 research reports from 1 professional analysts.
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Pro-forma everthing is running according to plan
20 Oct 16
The company reported final Q3 16 results. Revenues declined 8.2% to €198.3m and EBIT dropped 24.9% to €49m. The EBIT margin declined from 30.2% to 24.7%. Interestingly, management explicitly discussed pro-forma Q3 16 results. Several strategic deals were closed after the end of Q3 16. The total volume of these deals (Digital Business Platform licences) reached €7.2m.
Waiting for growth!
14 Oct 16
Preliminary Q3`16 results.Revenues declined by 8.2% to €198.3m (estimate €207.6m). Management indicated that a deal worth €7.2m had been signed in the fourth quarter. This deal for the Digital Business Platform business division had been postponed by a strategic customer. But even including the deal the company experienced a revenue decline of 4.8%. EBIT dropped 25% to €50.1m including special provisions of €5.4m for a lawsuit in the USA. Excluding provisions, EBIT dropped only 16.9%. We estimated an EBIT of €57m. The EBIT margin declined from 30.2% to 25.3% however the third quarter 2015 was pretty strong. Total license revenues declined 32.1% to €46.9m but maintenance revenues remained robust and increased by 3% to €104m. License revenues of the Adabas & Natural business division collapsed by 66.2% to €9.3m. Nevertheless maintenance revenues remained stable at around €39.6m. License revenues of the Digital Business Platform business division declined 9.4% to €37.5m and increased 8% including the lost contract. Maintenance revenues increased 4.3% to €64.4m. Revenues of the Consulting division grew 3.2% to €47.3m.
Strong operating performance but growth lagging behind
14 Jul 16
The company reported preliminary Q2 16 results and increased the guidance for the financial year 2016. Revenues declined 1.1% to €203.4m but, according to the company, revenues increased 2% but this is currency adjusted. EBIT jumped 35.6% to €43.3m and the EBIT margin increased from 20.1% to 25.9%. Net income improved 41.5% to €28.2m.
Do not be blinded by the figures!
13 Apr 16
The company reported preliminary first quarter results. Revenues increased 6.2% to €206.2m (at constant currency 9%). Maintenance revenues declined 1% to €98.7m but licence revenues increased 27% to €59.1m. EBIT according to the company definition however jumped 55% to €45.3m. The EBIT margin improved from 15% to 22%. Management confirmed guidance for the current year.
Stuck in the middle of the transition process
19 Jan 16
Preliminary 2015 results. Total revenues increased by 4% to €257.5m in Q4`15. License revenues on the Digital Business Platform performed, however, strongly and grew by 23% to €74m with maintenance revenues up 10% to €63.6m. Real EBIT increased by 12% to €80.1m and the EBIT margin reached 31%. The strong operating performance was mainly driven by the favourable product mix and active cost management.
Crying out for growth
15 Jan 16
The company will report final 2015 results on 27th January. According to the consensus estimates published on 14th January, analysts are quite optimistic for the business division DBP (business process excellence). Analysts are expecting total DBP revenues to reach €422.9m in 2015. According to our estimates, which are below the minimum estimate of €385.5m, the company will reach €373.3m. In Q4`15 DBP revenues are expected to reach €130.1m (€90.9m our estimate). This would imply an increase of 10% mainly driven by the maintenance business and not by license revenues. We will be increasing our DBP estimates to €110.6m. DBP revenues are now expected to decline by only 6.4% to €110.6m. Our adjusted estimates however are still below consensus. In Q4`15 EBIT is expected to reach €75m (our estimate is €69.1m). Net income should reach €48.9m (our estimate €47.4m). Over the full year analysts, are expecting revenues of €863.6m (€884.6m own estimates) and an EBIT of €204.3m (199.8m AV estimate).
A data-driven H1 raises expectations
05 Dec 16
The first reporting period under the new D4t4 Solutions brand saw the group (previously IS Solutions) deliver good growth, leaving it well on track to meet PBT forecasts in FY 2017, and we now increase FY 2018 forecasts. The business continues to flourish from its focus on data management and analytics, enabling its international blue-chip client base to gather and gain advantage from the mass of customer data available, utilising the leading-edge Celebrus solution. Industry analysts predict 12% CAGR for the BI & Analytics market through to 2020, and D4t4 is riding this wave of demand.
Taking a prudent road
28 Nov 16
As flagged in September, H1 2017 profit is indeed below LY; adj. PBT of £0.5m compares with £1.5m in H1 2016 as Trakm8 invests heavily in new technology and acquisition integration. Management remains confident in another very strong H2 performance and in particular is focused on closing a couple of large high-margin software-related sales which would see the group meeting the original FY 2017 expectations of £5.9m adj. PBT. However, should these fall outside the March year-end, profits are only likely to be in line with last year’s £3.9m, albeit on a growing revenue base. Prudence dictates we assume a worst-case scenario in our forecasts so that surprise is only in the upside – if the deals close in the year, the company will meet those original revenue and profit expectations.
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
Quality business as usual
06 Dec 16
iomart's interims show delivery of continuing organic growth, complemented by targeted acquisitions to extend the strategic opportunities. Compared with peers exposed to project-based revenue, cloud services organic growth continued at 10% (comfortably within our expected 8-11% target range), with the evolution of margins as expected: the growing proportion of public cloud services mildly easing EBITDA margins but maintaining or even strengthening adjusted PBT margins, given the lack of related depreciation. With high quality recurring revenue at high margins, and (lower margin, lower recurring revenue) peer group exit valuations comfortably above iomart’s current valuation, the upside remains very clear. Target 360p reiterated.