July 19, 2019 / 5:53 AM / 3 months ago

Software AG lowers guidance for middleware division

FRANKFURT (Reuters) - Software AG (SOWGn.DE) lowered the outlook for its integration software division as it reported a 9% drop in second-quarter operating profit, sending its shares down by 5% in pre-market trading on Friday.

Germany’s second-biggest listed tech company behind SAP (SAPG.DE) said it now expected revenues at its Digital Business Platform (DBP) unit to decline by up to 6% this year, down from an earlier forecast of growth of 3%-7%.

DBP revenues underperformed in the quarter as the division reorganized its U.S. sales force, Software AG said in a statement released overnight. All other guidance was unchanged.

Software AG, under new management led by CEO Sanjay Brahmawar, is seeking to capitalize the accelerating boom in connected devices and sensors, and here its new Cloud & Internet division achieved growth of 144%, ahead of expectations.

Reporting by Douglas Busvine; Editing by Thomas Seythal

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