DARMSTADT (dpa-AFX) - Software AG, which is in the process of being acquired by financial investor Silver Lake, benefited from its strong database software business in the second quarter. Also due to unexpectedly early contract conclusions, revenue and margin exceeded analysts' expectations. In the declared future business with integration software, growth turned out to be much more meager.

Overall, revenue climbed nine percent year-on-year to 248 million euros, Software AG announced on Monday. In product revenue, which excludes consulting services, growth was slightly better at twelve percent. However, the increase is primarily attributable to the smaller division for database software (A&N), among others, whose product revenue rose by 41 percent. Among other things, the segment benefited from contracts that were signed earlier than expected, said Chief Financial Officer Daniela Bünger. In the digital division, the declared business of the future, growth was only one percent.

Good business in the high-margin A&N division also drove earnings. Earnings before interest, taxes and goodwill amortization (Ebita), adjusted for special effects, rose by around ten percent year-on-year to 54.3 million euros. Analysts had expected a significantly lower figure of 33.4 million euros. The Ebita margin increased only minimally to 21.9 percent. Software AG posted a net profit of 5.2 million euros, compared to 17.7 million euros in the same quarter last year. Among other things, higher taxes and special costs for acquisitions had an impact.

"Our customers remain cautious in their IT spending," Group CEO Sanjay Brahmawar said in a conference call. Nevertheless, he said, demand remains robust. He believes Software AG is well on its way to achieving its annual targets.

Baader Bank analyst Knut Woller described the figures for the important digital division as disappointing. Nevertheless, the overall operating result was 63 percent better than generally expected - also due to the strong A&N division.

Due to the takeover by US technology investor Silver Lake, Software AG is to be delisted from the stock exchange. The transaction still has to be approved by the authorities - Silver Lake hopes to complete the takeover in the fourth quarter. Because the free float is already too low, the stock will drop out of the MDax this Tuesday. Silver Lake is paying 32 euros per share in the takeover - on Monday, the share price rose 0.6 percent to 31.80 euros./jcf/men/mis