Software AG, based in Darmstadt, said net income for the July-September period rose to €38 million ($56 million) from €31 million in the third quarter of 2008.
Revenue for the period increased 19 percent to €214 million from €180 million.
Software AG, one of Germany's largest software companies, said it expects a higher profit margin and revenue for the full year.
The company makes products for banks, governments, health care and educational groups. It also sells service, maintenance and consulting services.
It said it continued to increase its efficiency and profitability, and that large and strategic customer deals and opportunities raised by the acquisition gave it grounds for optimism.
"After the first nine months of the year, we expect full-year revenue in the range of €835 million to €845 million," Chief Financial Officer Arnd Zinnhardt told The Associated Press after the results were released.
He said about €40 million in revenue in the third quartercame from IDS Scheer.
Zinnhardt said the company would work to integrate Scheer over the next year and would consider making future acquisitions in 2011 or 2012, but did not talk specifically about what sort of deals it was considering.
"We want to do the current integration right; we want to see how the combined Scheer and Software AG products do together," he said.
Zinnhardt said the company's sales in Japan, its biggest market in Asia, were somewhat below expectations during the quarter, but that Australia was doing well.
He said the business in Brazil, which Software AG entered last year, was showing strong growth.
"We were very successful and we're confident that we'll see €50 million in revenue there for 2009," he said.
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