Leidschendam, 9 augustus 2006 – IDS Scheer heeft in het tweede kwartaal van 2006 een recordgroei van de verkoop van softwarelicenties van 41% gerealiseerd. De verkoop van licenties in het tweede kwartaal bedroeg 11,6 miljoen euro. In het tweede kwartaal van 2005 was dit 8,2 miljoen euro. De succesvolle licentieverkoop van ARIS, de Business Process Management-oplossing van IDS Scheer, droeg bij aan deze groei. De totale omzet van de IDS Scheer Group steeg in het tweede kwartaal van 2006 met 13% tot 88,4 miljoen euro. Dit resultaat overtrof de verwachtingen. De focus op groei in specifieke productgebieden heeft gezorgd voor een winstgroei (EBITA) van 22% tot 9,8 miljoen euro. De EBITA-marge groeide tot 11,1%. In hetzelfde kwartaal van 2005 was deze 10,3%.
Op basis van de goede resultaten in de eerste helft van 2006 stelt het bedrijf de groeiverwachtingen naar boven bij. Voor het fiscale jaar 2006 verwacht IDS Scheer een omzetgroei van 10% tot 11% (eerdere verwachtingen waren 9% tot 10%). De toename van het aantal verkochte licenties ligt naar verwachting tussen 24% en 26% (eerder 16% tot 18%). Verder wordt verwacht dat de operationele winst zal toenemen, zodat de EBITA-marge in 2006 0,5 tot 1 procentpunt zal groeien.
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Hieronder treft u het volledige Engelstalige persbericht aan.
Voor meer informatie:
IDS Scheer Nederland BV
Erwin Angelier
Telefoon: +31 (0)70 – 301 2040
E-mail:
erwin.angelier@ids-scheer.comLammers van Toorenburg Benelux PR
Charly Lammers van Toorenburg
Telefoon: +31 (0)30 – 656 5070
E-mail:
ids-scheer@lvtpr.nlPress Release
Interim Report Second Quarter 2006:
For the complete Interim Report January – June 2006
click here; for the Presentation of the Executive Board please
click here.
IDS Scheer Raises Projections for License and Group Growth Following Record Increase of 41% in License Sales
- Total revenue outpaces expectations, grows by 13% to €88.4 million
- License business posts record growth of 41% to €11.6 million
- Product area boosts share of revenue to 32% and margin to 27.1%
- Consulting area grows by 5% to €59.7 million
- Operating profit (EBITA) climbs to 11.1% compared to previous year's 10.3%
- Net profit for second quarter up 29% to €5.9 million
- Increase in FY 2006 projections for license and Group growth
- New Agreement: Oracle Expands Oracle® Fusion Middleware’s Business Process Management Offering with IDS Scheer’s ARIS Platform (see separate Press Release of August 3, 2006)
Saarbruecken, August 3, 2006
In the second quarter of 2006, IDS Scheer posted record growth of 41% to €11.6 million in software-license business compared to the second quarter of 2005 (€8.2 million). The driving force for the company overall is software license sales of ARIS, the world's leading business process management solution. Total revenue in the IDS Scheer Group rose by 13% to €88.4 million (previous year: €78.4 million), a greater increase than anticipated. Because of focused expansion in the product area, earnings before interest, taxes and amortization of intangible assets (EBITA) increased by 22% to €9.8 million. The EBITA margin of IDS Scheer AG increased to 11.1% compared to 10.3% in the second quarter of the previous year. Following the positive development in the first half of 2006, particularly in the product area, the company is raising its growth projections: For fiscal year 2006 IDS Scheer now anticipates revenue growth of 10% to 11% (previously: 9% to 10%) and an increase in license volume of 24% to 26% (previously: 16% to 18%). Operating profit is also expected to grow, so that an increase of 0.5 to 1.0 percentage points in the EBITA margin is maintained for 2006.
Product area as a driving force
The overall product area, including licenses, maintenance and ARIS Services, achieved a 32% increase in the second quarter of 2006, yielding €28.7 million (previous year: €21.7 million). The product area's share of Group revenue therefore grew to 32% compared to 28% in the previous year. Revenues from licenses grew to a record of €11.6 million (previous year: €8.2 million). Maintenance revenue climbed even faster, growing by 59% to €4.6 million (previous year: €2.9 million). ARIS Services, which comprise product-related services such as training, rose by 18% to €12.5 million (previous year: €10.6 million). As a driving factor, business from new licenses contributed significantly to the increase in revenue and profitability of the company as a whole. The product area achieved an EBITA of €7.8 million (previous year: €5.5 million), exceeding the results in the second quarter of 2005 by 42%. The EBITA margin rose accordingly to 27.1%, compared to 25.3% in the previous year. A number of individual projects in all five focus regions as well as some major projects influenced the growth in the product area.
The consulting area achieved revenue of €59.7 million (previous year: €56.7 million), an increase of 5%, in the second quarter of the current fiscal year. IDS Scheer's revenue from the presently booming metals industry also grew significantly, especially in North America and China. In the Group as a whole the greatest shares of revenue and strongest growth rates were posted in the consumer-goods and chemicals/pharmaceuticals industries. The EBITA in the consulting area reached €2.1 million (previous year: €2.6 million), representing an EBITA margin of 3.4% (previous year: 4.5%). This decline in the margin is due largely to postponement of projects in the international consulting market, whereas a continued increase in profits in the German home market resulted from increased business in third-party licenses as well as from an increase in consultant utilization.
Increase of Growth Projections
"High growth rates in all areas and the exceptional results in license business confirm IDS Scheer's strategy of expanding our highly profitable product area to 40% of total revenue and doubling revenue in conjunction with increasing profits by 2010," says Helmut Kruppke, CEO of IDS Scheer AG. "The results for the first half of the year leave us confident that we will exceed our growth goals in the current fiscal year. We now believe we will achieve growth of 10% to 11% in total revenue and growth in license volume of 24% to 26% in 2006."
Future-oriented Product Strategy
Dr. Wolfram Jost, the member of the executive board responsible for product strategy, explains. "In addition to the positive quarterly results, we are pleased today to be able to announce the start of our sales and technology cooperation with the large US IT company Oracle. This is our answer to international customer demand and expands our middleware platform strategy with the addition of a significant integration component. We expect positive effects thereof for our license business beginning in 2007. At the same time we will continue to strengthen our cooperation with our long-time strategic partner SAP in view of the integration of ARIS and the SAP NetWeaver platform and the joint marketing of the integrated product. ARIS has now reached another milestone on the way to becoming the worldwide industry standard for business process analysis and improvement."
According to a newly published agreement, IDS Scheer will develop an ARIS interface for Oracle Fusion Middleware and Oracle will do the OEM reselling for the joint solution.
International development
Growth was equally strong internationally and in Germany. The Germany Region increased revenue during the reporting quarter by 14% (before segment consolidation) to €44.4 million (previous year: €39.1 million), and achieved an EBITA of €6.7 million, compared to €5.3 million in the second quarter of 2005. This represents an increase of 27% in profits. The EBITA margin in Germany rose accordingly to 15.2% in comparison to 13.5% in the previous year. In the same period, the international subsidiaries reported revenue of €55.1 million (previous year: €49.2 million), an increase of 12% (before segment consolidation). With an EBITA of €3.1 million (previous year: €2.6 million), the EBITA margin for the international subsidiaries improved slightly to 5.5% (previous year: 5.4%).
The international client base continued to expand in both the product and consulting areas. New clients in the second quarter include companies such as Allianz (insurance, Poland), Axens (chemical/pharmaceutical, France), Bernafon (consumer goods/retail, Switzerland), Chemet (chemical/pharmaceutical, Poland), Direct Energy (utilities, Canada), Essent (utilities, Netherlands), John Laing Homes (capital goods, USA), Mercator (consumer goods/retail, Slovenia), Nurbank (banking, Russia), Otoyol (automotive, Turkey), Recupel (utilities, Belgium) and TPG (logistics/transportation, Netherlands). Of particular note is the addition of clients in the growing Chinese market including Anshan Iron & Steel Co. and Shougang Co. (both paper/textiles/metals) and Shanghai Diesel (automotive). Among the well-known companies added to IDS Scheer's client base are also name brands such as Coca-Cola (consumer goods/retail, Turkey) and ING Insurance (Belgium).
Increase in Profits
The IDS Scheer Group achieved an operating profit (EBIT) of €9.2 million in the second quarter (previous year: €7.3 million), representing an increase of 25%. As a function of increased Group revenue, the EBIT margin was 10.4% (previous year: 9.4%). The improvement of the operating profit is above all due to the dynamic, focused expansion of the highly profitable product business. The company's goal is to develop the product area to 40% of total revenue by 2010.
Earnings before taxes and minority interests (EBT) grew by 27% to €9.5 million (previous year: €7.4 million). Profit for the quarter increased by 29% to €5.9 million (previous year: €4.6 million), boosting earnings per share (EPS) to €0.183 (previous year: €0.141).
Positive development in the first half of 2006
In the first half of 2006, IDS Scheer AG increased its worldwide revenue by more than 12% over the same period in 2005 to €173.3 million (previous year: €154.1 million). Corrected for currency exchange, revenue grew by 11%. The EBITA grew to €19.4 million compared to €15.8 million in the previous year, representing an increase of 23% and an improvement in the profit margin to 11.2% (previous year: 10.3%).
Total revenue in the product business area, including maintenance and ARIS Services, grew by 27% to €54.8 million (previous year: €43.0 million). In the first half of 2006, revenue from licenses of €22.4 million was 36% over the previous year's figure of €16.4 million. Revenue from ARIS maintenance increased by 40% to €8.1 million (previous year: €5.8 million) and revenue from ARIS Services grew by 17% to €24.3 million (previous year: €20.8 million). The product area produced an EBITA of €14.6 million in the first six months of 2006, representing an increase of 36%. The EBITA margin rose from 25.0% in the previous year to 26.7%. The driving force for this increase in the margin is the greatly increased license revenue.
Revenue from the consulting area increased by nearly 7% to €118.6 million (previous year: €111.1 million) in the first half of 2006. EBITA was €4.8 million compared to €5.1 million for the same period of 2005. This increase represents an EBITA margin of 4,0% (previous year: 4,6 %). The main reason for the pressure on the margin is the postponement of individual international consulting projects.
In the first half of 2006, the Germany Region generated revenue of €87.3 million (previous year: €76.8 million) before segment consolidation, representing an increase of 14%. The region achieved an EBITA of €13.5 million (previous year: €10.5 million) and continued to increase profitability: The EBITA margin in Germany increased to 15.4% compared to 13.6% in the previous year. The international companies of the IDS Scheer Group generated revenue totaling €107.3 million (before segment consolidation). This represents an increase of 12% in comparison to the same period of 2005 (previous year: €96.2 million). The international companies' EBITA of €6.1 million outpaced the previous year's figure of €5.4 million and increased the EBITA margin to 5.7% (previous year: 5.6%).
Net profit for the six-month period in the IDS Scheer Group grew by 25% to €11.4 million (previous year: €9.2 million) in the first half of 2006. Earnings per share (EPS) climbed 26% to €0.353 (previous year: €0.280). Earnings per share is based on the weighted, undiluted number of 31,992,349 shares (previous year: 31,928,782 shares).
As of June 30, 2006, the IDS Scheer Group employed 2,652 people worldwide. This represents an increase of 268 people (+11%) compared to the same reporting date in 2005.
Increase in FY 2006 projections for revenue and license growth
Following the positive development in the first half of 2006, particularly in the product area, the company raised its January projections for the year: For fiscal year 2006 IDS Scheer now anticipates revenue growth of 10% to 11% (previously: 9% - 10%) and an increase in license volume of 24% to 26% (previously: 16% - 18%). Operating profit is also expected to grow, so that an increase of 0.5 to 1.0 percentage points in the EBITA margin is maintained for 2006. These figures are based on the results from fiscal year 2005 with revenue of €318.1 million and an EBITA margin of 10.6%.
About IDS Scheer
The software and consulting firm IDS Scheer develops solutions for business process management in companies and the public sector. With ARIS Platform for Process Excellence, IDS Scheer offers its clients a complete, integrated portfolio of tools for the strategy, design, implementation, and monitoring of business processes. Using the ARIS Value Engineering (AVE) approach, IDS Scheer consultants build bridges between company strategy, processes, IT solutions and the monitoring of ongoing operations in client organizations. IDS Scheer was founded in 1984 by Dr. August-Wilhelm Scheer. Today, its subsidiaries and partners serve approximately 6,000 clients in over 70 countries. The IDS Scheer Group achieved revenue of approximately 318 million euros in 2005. The company employs over 2,500 people worldwide and is listed on the TecDAX exchange of the Frankfurt Stock Exchange.
For further information, please visit
www.ids-scheer.com