Enterprise integration: webMethods SOA solutions driving growth at Software AG

-- Manufacturing Business Technology, 4/28/2008 1:11:00 PM

Robust sales of the webMethods service-oriented architecture (SOA)-based based enterprise integration products drove strong earnings growth for Software AG in the first quarter of 2008.

Software AG, a German company that has long offered technology for building corporate IT infrastructures, acquired webMethods in April 2007.

The new webMethods business division of Software AG, which offers enterprise integration solutions, posted 22.2 million euros (approximately $35 million USD) in revenue from software licenses for the quarter, an 80 percent increase over the previous year. The webMethods division also showed a significant improvement in earnings, contributing 21.7 million euros ($34 million USD), before administration and R&D costs, to the company’s operating result, following a zero contribution to earnings in 2007.

Software AG’s total revenues for the quarter were 159.4 million euros ($249 million USD), a 37 percent increase over the same period a year ago. Total earnings for the quarter, 36 million euros ($56 million USD), represented a 44 percent increase of the first quarter of 2007.

In a press release announcing its quarterly earnings, Software AG said this success in the U.S. market—which the company considers its most important—underscores the quality of the webMethods products, the efficiency of the US sales organization, and the successful integration of the recently acquired company into the Software AG corporate structure. 

 “In the field of integration software we are doing very well in the US market, contrary to the general trend,” Karl-Heinz Streibich, CEO of Software AG, said in the press release. “In addition, we have succeeded in concluding deals with large customers in other regions and we have further growth potential.”

Much of the further growth is expected to come from Europe and Asia, where the webMethods portfolio has yet to be marketed heavily.

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