Axway Software: Q1 16 sales below our expectations, focused on the transformation plan

Yesterday evening Axway reported Q1 16 sales 4% below our expectations, essentially due to the slippage in a couple of licence deals in France, while America confirmed its strong recovery. We are making virtually no change to our forecasts as we cannot rule out that the prospect of longer sales cycles in Operational Intelligence (OI, ex Systar) transforming into deals at the back-end of the year. We do not expect the share price to react significantly short-term, pending more positive catalysts.