It's no mystery what this company sells. Software AG specializes in business process management software, including XML-based database applications and enterprise software, transactional databases, and applications development. The company's customers use its products to link and manage a wide variety of IT assets, including business software, servers, databases, mobile devices, and PCs. Services include consulting, maintenance, and training. Software AG has partnerships with the likes of IBM, HP, Fujitsu, and Microsoft. The company, Germany's second-largest software firm behind SAP, serves customers in some 70 countries.
Software AG has streamlined its product offerings to focus on core applications -- Adabas, ARIS, CentraSite, Entire Systems Management, Natural, and webMethods. The company continues to look to XML offerings for future growth, and is developing mobile access capabilities for existing products. Software AG is also strengthening its partnerships; it has formed new alliances with Vordel, iWay Software, and other firms with complementary technology and services.
Nearly 80% of sales comes from customers located outside of Germany.
Sales and Marketing
Software AG has counted Avon Products, CenterPoint Energy, Conergy, Georgia Technology Authority, San Diego Association of Governments, Owens & Minor, Linde AG, Poste Italiane, Staples, and M-real among its 10,000 enterprise and government customers.
The company's total annual revenue has been stable year-over-year. It reported about $1.3 billion in revenue for fiscal 2013 after claiming $1.3 billion in revenue for fiscal 2012 and $1.4 billion in revenue for fiscal 2011. Software AG's net income dropped from $217 million in fiscal 2012 down to $184 million in fiscal 2013. Its cash on hand dipped slightly, but has been relatively stable along with the top line annual revenue in recent fiscal years.
Mergers and Acquisitions
Software AG has also used acquisitions to boost capabilities in key strategic areas. In 2013 it acquired cloud platform vendor LongJump. The company purchased my-Channels, developer of the Nirvana messaging application, the following year. The deal extended Software AG's messaging product line to include more real-time functions for integrating with enterprise and cloud-based software, as well as mobile devices.