Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOFTWARE AG. We currently have 10 research reports from 1 professional analysts.
Frequency of research reports
Research reports on
Accelerator needs a complete overhaul
26 Jan 17
The company released Q4 16 results. Management was excited about the performance but it must have been a different company they were talking about. In Q4 16, total revenues increased 2.5% to €264m. EBIT declined by 6.4% to €73.6m. The EBIT margin reached 27.9% compared to 30.5% in Q4 15. The real EBITA remained nearly stable at €89.2m and the EBITA margin declined from 34.9% to 33.8%. According to management, the non-IFRS EBITA margin declined from 35.8% to 34.2%. In the financial year 2016, revenues remained stable at around €871.8m. The real EBITA margin declined from 27.8% to 27.2% but the non-IFRS EBITA margin increased from 29.7% to 31.2%. Net income increased marginally from €139.4m to €140.2m.
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.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.
13 Feb 17
Surface Transforms* (SCE): H1 results confirm operational progress (CORP) | Premaitha Health* (NIPT): European diagnostics partnership (CORP) | Lok'nStore* (LOK): Filling existing stores, developing new ones (CORP) | Victoria* (VCP): Entry into the European flooring market (CORP) | eg solutions* (EGS): Exceptional H2 performance (CORP)