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SAGE TRIMS LOSS; NORTH AMERICA LAGS

Paul WalkerHere’s one place it would be helpful if Sage reported quarters instead of six-month periods as the company reported that North American revenue fell to about $428.7 million for the first half ended March 31, down about 6 percent from a year earlier. Since many businesses have shown improved results, it would be helpful to know how sales changed over the period. Chief executive Paul Walker said second quarter results were better than those of the first quarter.

But we don’t get details and can only talk about how organic North American revenue fell by 5 percent over the prior year’s half, an improvement from the 8-percent decline for the six months ended September 30. And revenue from software and services in this continent was down 13 percent for this market, which was a lot better than the 24-percent decline a year ago. Still last year’s layoffs had the hoped-for impact on margins as the Sage Group said that the first-half North American EBITA margin was 22 percent, compared to 18 percent a year earlier. Worldwide, the Sage Group reported revenue of $1.14 billion, down 3 percent from a year ago at constant exchange rates. The EBITA margin company-wide was 25 percent, up from 23 percent a year earlier. Despite some conjecture that Sage might consider selling its healthcare business, Walker talked about the improved margins and the company's excitement about prospects.
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