Software AG Shares Decline as Second-Quarter Sales Miss Analyst Estimates
Revenue will be 256 million euros ($364 million) to 258 million euros, hurt by currency moves and the unexpected failure to close software-license deals, the Darmstadt-based company said late yesterday. Demand for implementation of products from SAP AG (SAP), the world’s largest maker of business-management software, fell from last year, it said. Sales had been seen at 280 million euros, the average estimate in a Bloomberg survey of eight analysts.
The stock fell as much as 6.74 euros, or 16 percent, to 35.32 euros, the biggest intraday drop since April 2009, and traded 12 percent lower at 36.84 euros as of 10:32 a.m.
On July 12, Indian software exporter Infosys Ltd. forecast sales that missed analysts’ estimates as customers held off signing new contracts because of uncertainties in the global economy.
Software AG, which makes software for business transactions and offers consulting services, said it still forecasts growth in full-year sales of as much as 7 percent at constant currencies and net income to increase as much as 15 percent based on a “strong” sales pipeline.
Software AG (SOW) will report complete second quarter results on July 28 and SAP will report earnings on July 25.
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