Walldorf, July 08, 2010. On July 2, 2010 SAP and REALTECH entered into a software sales and development partnership with the key objective of integrating REALTECH’s IT infrastructure software into SAP’s portfolio of solutions.
The contract includes part of the existing theGuard! family of products, which REALTECH has sold for many years, primarily in Germany.
“For REALTECH this is a confirmation both of the high quality of REALTECH’s products and also the good working partnership with SAP. The international sales channel created as a result of this, including new consultancy services, will move the Group – and therefore all international subsidiaries – in a new strategic direction,” explained Nicola Glowinski, REALTECH AG’s Chief Executive Officer.
It is the intention of both partners that they will be able to offer medium-sized SAP customers an appropriately integrated software solution by mid-2011 at the latest.
“The software business, which to date has generated approx. 20% of revenue worldwide, will move into a stronger position in future and make an even more important contribution to operating income going forward,” added Dr. Rudolf Caspary, Chief Technology Officer.
At the same time, REALTECH is reporting structural problems in the consultancy business at the international subsidiaries in Spain and Italy, resulting in falling revenues and earnings.
“The global economic crisis has reached REALTECH in Spain and Italy later than elsewhere and current results and forecasts indicate that this will result in a decline in revenues and earnings. In both subsidiaries cost reduction programs were established,” said Nicola Glowinski.
Because of the short-term challenges in Spain and Italy and investments in the sales partnership with SAP, REALTECH’s aim of increasing EBIT by more than 20% in 2010 and achieving moderate growth in revenues is unlikely to be achieved.
In spite of this, the Executive Board is optimistic about the future at REALTECH AG and believes that the 2011 fiscal year will be successful, particularly in view of the SAP OEM partnership.
Contact:
Volker Hensel
Investor Relations
REALTECH AG
69190 Walldorf
Tel.: +49.6227.837.500
Fax: +49.6227.837.9134