DARMSTADT-EBERSTADT (dpa-AFX) - Germany-based Software AG (STWRY.PK) on Tuesday raised its fiscal 2017 outlook for operating profit margin, based on its second-quarter financial results.
For the second quarter, net income on non-IFRS basis was 40.2 million euros, up 10 percent from 36.7 million euros last year.
Non- IFRS earnings per share grew 13 percent to 0.54 euro from 0.48 euro a year ago.
Total revenue rose 2 percent to 207.4 million euros from prior year's 203.4 million euros. At constant currency rates, revenues grew 1 percent.
Earnings before interest and taxes or EBIT increased 11 percent. The result was mainly driven by high margin maintenance revenues in the digital business, which grew by 9 percent.
The operating profit margin improved significantly by 210 basis points to 29.5 percent.
Based on the increased profitability, the company now expects full-year operating profit margin to be between 31.0 to 32.0 percent, higher than previous estimate of 30.5 to 31.5 percent.
Further, the guidance for Software AG's digital business line and for its database business, Adabas & Natural, were reconfirmed.
For the year, the Digital Business Platform product revenue is expected to increase between +5 and +10 percent, at constant currency.
For the database business Adabas & Natural, the Group continues to expect a revenue decline between 2 and 6 percent at constant currency.
Copyright RTT News/dpa-AFX