Software AG: FY13 results globally in line, positive FY14 guidance
BUY, Fair Value EUR34 (+33%)
This morning Software AG reported FY13 results globally in line with our forecasts and the consensus, with: 1). Q4 13 being the first quarter of positive revenue growth at cc in two years; 2). Unexpected ETS licences sales (est. EUR9-10m) offsetting BPE licence sales EUR7-8m below our ests.; 3). Non-IFRS operating margin 0.5ppt above expectations. FY14 company guidance is positive in our view, with sales growth at cc globally in line with our expectations (restated from the EUR9-10m unexpected ETS licence sales recognised in Q4 13), and an implied non-IFRS op. margin which we estimate at 27-29% (BG est.: 26.6%). As such, we deem the share price will react positively near-term.
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