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. Nearly 80% of sales comes from customers located outside of Germany.
Sales for 2011 were around $1.5 billion, essentially flat compared to 2010. Software AG reported a 7% increase in revenues related to business process excellence (BPE), its primary product line. The company plans to invest in sales and marketing for BPE, with a goal of growing the business between 5% and 15% in 2012. Gains in BPE were offset by an 8% decline in enterprise transaction systems (ETS) revenues and a 5% drop in sales related to IDS Scheer Consulting. Software AG's net income increased by about 2%, which the company attributes to ongoing cost management, operational efficiencies, and debt reduction efforts.
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.
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.
In 2011 the company bought UK-based Metismo, a maker of software tools for mobile application developers, and Terracotta, a developer of software used to improve the scalability of business applications, particularly for cloud computing purposes. Both acquisitions added technology that feeds into Software AG's effort to improve mobile and Web-based access of its enterprise software products.
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.