euro adhoc: Software AG
Justice/Processes
Software AG confirms market entry
into Brazil on January 1st, 2008
-------------------------------------------------------------------------------- Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement. --------------------------------------------------------------------------------
18.12.2007
- New York´s Southern District Court rules in Software AG´s favor in dispute with Consist, Software AG´s Brazilian distributor
- Software AG´s office in Sao Paulo to start direct sales on January 1st, 2008
- Direct market presence in Brazil expected to contribute revenue of $20 to $30 million in 2008
- Group target EBIT margin raised to 23% - 24% in 2008
Darmstadt, Germany, 17.12.2007 Software AG today announced that the legal dispute with Consist, their distributor in Brazil, has been settled in Software AG´s favor. The United States District Court for the Southern District New York today decided that Software AG has legally terminated their distribution agreement with Consist. The ruling paves the way for Software AG to start direct operations in Brazil from its Sao Paulo office on Jan 1st, 2008 as planned.
Software AG has forecast growth of group revenue in the range of 22% to 25% in 2008 at constant currency rates. This includes the direct market presence in Brazil which is expected to provide a revenue contribution of $20 to $30 million in 2008. Based on the court ruling, Software AG does not incur any additional extraordinary market entry costs and therefore has raised the 2008 target EBIT margin to 23% - 24%. Establishing direct activities in Brazil is a major step for Software AG and will support the company in reaching its target of EUR1 billion revenue even earlier than the planned 2011.
end of announcement euro adhoc --------------------------------------------------------------------------------
Further inquiry note:
Otmar F. Winzig
Vice President Investor Relations
Phone +49 (0) 6151 92-1699
Fax +49 (0) 6151 92-1191
Norbert Eder
Vice President Corporate Communications
Phone +49 (0) 6151 92-1146
Fax +49 (0) 6151 92-1444
Branche: Software
ISIN: DE0003304002
WKN: 330400
Index: TecDAX, CDAX, HDAX, Prime All Share, Technologie All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse Hannover / free trade
Original-Content von: Software AG, übermittelt durch news aktuell