Germany’s other software company – Software AG – announced a milestone on Friday: 2008 revenue passed $1 billion for the first time.
Software AG is benefiting from its acquisition of webMethods
The company sees more growth ahead. This year, sales are projected to grow 4 percent to 8 percent with margins improving.
The firm isn’t the only business software maker to dodge the worst of the economic firestorm sweeping the globe. This week Oracle also impressed Wall Street with its steady financial results.
Part of the explanation is the software business model. Customers pay regular, annual fees to maintain their software and receive updates. At Software AG, 60 percent of revenue and 70 percent of profits come from maintenance, upgrades and follow-on business.
But the company says as well that software continue to be a priority purchase for corporations determined to cut costs, find new efficiencies and position their businesses for growth.
The developer, which gets far fewer headlines than Germany’s SAP, also is benefiting from its 2007 acquisition of webMethods. WebMethods has “become the company’s growth engine,” accounting for 44 percent of revenue in 2008, according to an e-mail.
[...] “other” proprietary German software company, just a week after its major milestone; passing the $1 billion mark in annualized revenue for the first [...]