FRANKFURT, Germany — Germany’s Software AG reported Tuesday a 31 percent rise in net profit on higher sales in 2008, boosted by its debut in new markets.
The Darmstadt-based company — the world’s largest independent provider of mission critical software and Germany’s second largest software company after SAP AG — said net profit in 2008 increased to euro116 million ($153.12 million) from euro88.4 million a year earlier.
Total revenues, including services, rose 16 percent to euro720 million from euro621 million a year earlier. Product revenues increased 19 percent to euro539 million, from euro454.2 million in 2007.
The company said its successful entry into the Brazilian market, the smooth integration of its webMethods products and continued organic growth in the new webMethods division contributed to the good performance in fiscal 2008.
Software AG’s Chief Financial Officer Arnd Zinnhardt told the AP the company was sticking to its outlook for 2009.
“We believe we will increase total revenues between 4 percent and 8 percent for the year,” he said.
“Brazil is performing extremely well. We had euro40 million in sales in licensing and maintenance. Taking into consideration that we’ve been active there for just nine months is fantastic.”
He said the company’s earnings before interest and taxes grew by 32 percent to euro180.5 million in 2008, which he said was “extremely successful.”
He added that free cash flow for the year grew by more than 60 percent in 2008 — an important consideration, Zinnhardt said, in the current environment where lenders are hard to find. Software AG intended to continue growing that measure of the company’s business, he said.
Shares of Software AG were up 2 percent at euro39.38 in pre market open trading.
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