DARMSTADT-EBERSTADT (dpa-AFX) - Germany-based Software AG (STWRY.PK) reported that its first-quarter non-IFRS net income declined 23 percent to 27.9 million euros from 36.3 million euros in the same quarter last year. On a non-IFRS basis, earnings per share was 0.38 euros, down from 0.49 euros in the prior year.
But, quarterly revenue grew to 207.0 million euros from 201.4 million euros in the prior year.
Toward the end of the quarter Software AG did see a low single-digit percentage negative impact from Professional Services projects cancelled or postponed as a result of COVID-19.
The Group expects to deliver a solid performance in the first half of 2020. However, with limited visibility into the second half of the year, the Group has revised its financial guidance for the two DBP revenue lines. The Group's guidance for A&N and its non-IFRS EBITA margin remains unchanged.
For 2020, the company now expects slower than anticipated growth for its two DBP revenue lines but maintains its outlook for the robust A&N business and for Non-IFRS EBITA operating margin.
Over the medium-term, demand for digitization should intensify as a consequence of the likely lasting changes COVID-19's onset has caused within businesses and their operating structures.
Software confirmed its 2023 ambitions, most notably to reach 1 billion euros in revenue and expand operating margin to a 25%-30% range.
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