Software AG has had a tough time recently with slumping sales and a dip into the red in the face of constrained IT budgets and failings in its own execution.
However, after a series of job cuts and other cost-cutting measures, the company is back in the black. Its latest quarter saw earnings of E3.9 million ($4.49 million), although sales were down 13% at E99.5 million ($114.6 million).
The company has undergone a structural reorganization, which has seen its operations streamlined into four operations: southern and western Europe; northern Europe; Asia/Pacific and South Africa; central and eastern Europe; and the Americas.
As it sells broader integration services projects, rather than just standalone software products, its services revenue may increase as a percentage of total sales.
But it will remain a products company with a services element, rather than becoming a services company that happens to have some software products. Services currently account for 30% of sales.
The other challenge facing Software AG is getting its integration infrastructure platform message across to CIO-level decision-makers, when historically it has sold predominantly to application developers and database administrators.
This article was based on material originally published by ComputerWire.
