Software AG Systems Inc, the Reston, Virginia connectivity and middleware provider, is doing well after being spun out of its German parent last year. Instead of just peddling the latest releases from the German company’s Darmstadt headquarters, it has plunged into the R&D business itself, increasing the headcount in product development from 6 to 32 over the past year with the aim to take it up to 60. As the investment is going into the highly competitive middleware space this is still a small amount for a company of its size, but it says acquisitions of both products and companies are now on the agenda. The relationship with its German associate has the added advantage that it has an immediate sales channel into Europe. Software from Software AG still accounts for 85% of revenues and there is now a huge demand for products that make data on mainframes more accessible. Consequently mid-term revenues raced ahead by 49.9% to $116.2m.
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