Software AG's shares down more than 7 percent on margin outlook

Software AG’s shares down more than 7 percent on margin outlook

FRANKFURT (Reuters) – Software AG issued a cautious outlook on its profit margins on Thursday, triggering a 7 percent share-price slide even though the German software group also said its industrial internet business could double in size in 2018. Analysts at Baader Helvea said the company’s 2018 core margin guidance of 30-32 percent was on the low side of consensus. Management, on a conference call, said it had taken a conservative view on the impact of a new accounting rule on revenue recognition. IFRS15, as the rule is called, is likely to have the greatest effect on software companies […]