Net income, sales plummet at Software AG
- 31 October, 2002 07:47
Software AG reported Wednesday a significant drop in both third-quarter net income and revenue.
The Darmstadt, Germany, supplier of business software saw net income for the third-quarter plummet 52 percent to 5.6 million (US$5.5 million on Sept. 30, the last day of the period being reported), compared to 11.6 million for the same period in 2001, the company said in a statement.
Third-quarter revenue dropped 19 percent to 114.8 million from 141.5 million the year before, hurt by a 39 percent decline in license revenue to 26.2 million from 43.3 million.
Software AG said its customers are using their reduced IT budgets to optimize existing systems. They are focusing on small-scale projects, which offer a fast return on investment, while continuing to postpone large investment in new technologies, the company said.
Looking ahead, Software AG sees no indications of the market improving during the remainder of its fiscal year. As a result, the license business will remain volatile, making it difficult to make a revenue forecast, the company said.