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Software AG

euro adhoc: Software AG
Software AG to focus on two product lines (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.
At today’s meeting the Supervisory Board and Management Board of
Software AG approved the strategic realignment. The key element is
the focus on two product lines.
1. XML-based integration: Software AG will combine and enhance its
products EntireX and Tamino, those that support the XML data format,
to create a comprehensive integration platform. This will enable
users to create cost-effective, seamless links between their legacy
systems, attaining levels of efficiency and performance that would
otherwise require the deployment of completely new systems. Software
AG is the market leader for products based on XML technology. XML
(eXtensible Markup Language) is a universal concept for the storage
and transmission of data. Software AG Project Services will employ
the new integration platform to develop customer-specific,
easy-to-use efficient solutions. Systems integrators will also be
able to use these state-of-the-art, highly productive tools to combat
increasing cost pressures.
2. Enterprise transaction systems: Software AG will broaden its
portfolio of mainframe software and look for new opportunities for
existing products. By doing so, the company can build on its success
and proven ability to increase enterprise productivity and efficiency
in this technically demanding segment. With its Adabas (database) and
Natural (development tools) product groups, Software AG has reached a
key position at more than 3,500 large corporations and public sector
organizations worldwide. Companies today wish to improve the
productivity and efficiency of their existing systems thereby
protecting their investments. The Enterprise Transaction Systems
product line optimizes and modernizes legacy IT systems by using new
tools to enhance performance, add new functionality such as
intelligent backup, and deploy Web technologies.
Focusing on two product lines will allow the company to consolidate
its R&D (research and development) activities. Assuming stable
business volumes, development costs for applications will fall.
Tamino development spending will also decrease. XML Server Version 4
has already been released; as the product is now at a very advanced
stage, future modifications, such as new functionality, will require
significantly less R&D overhead.
Focusing on two product lines will lead to a reduction of R&D costs
worldwide. Software AG India will take over the technical support for
Tamino and EntireX from Germany.
These steps will cut costs by 10 million euros in 2004, with
approximately 20 million euros to be saved each year from 2005.
Additional provisions totaling 13 to 17 million euros will be
included in the 2003 accounts, formed to finance the restructuring.
Software AG full-year operating income for 2003 is expected to exceed
2002 levels (32 million euros) by between 10 and 15 percent. However,
as a result of the one time restructuring charges, the company will
post a negative figure for net income (after tax).
Software AG's executive board will hold an international analyst
conference call today at 6:00 p.m. (CET). A ReBroadcast will be
available as of December 5, 2003 at 9:00 a.m. (CET) under the
following number: +49 (0) 69-50957-9999 (Access-Code: 249910).
end of announcement        euro adhoc 04.12.2003

Further inquiry note:

Otmar F. Winzig
Vice President Corporate Communications
Tel.: +49 (0)6151 92 1669
Fax: +49 (0)6151 92 1933
E-Mail: investor.relations@softwareag.com

Branche: Software
ISIN: DE0003304002
WKN: 330400
Index: CDAX, HDAX, Midcap Market Index, Prime All Share, Prime Standard, TecDAX, Technologie
All Share
Börsen: Frankfurter Wertpapierbörse / official dealing
Niedersächsische Börse zu Hannover / free trade
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade
Hamburger Wertpapierbörse / free trade
Bremer Wertpapierbörse (BWB) / free trade
Börse Düsseldorf / free trade
Baden-Württembergische Wertpapierbörse / free trade

Original-Content von: Software AG, übermittelt durch news aktuell

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