Estimated reading time: 1 minute, 7 seconds

SAGE'S KELLY SAYS STRATEGY WORKING Featured

Steve Kelly, SageIn his first earnings webcast, Sage's new chief executive Steve Kelly, declared that the strategy set by his predecessor, Guy Berruyer, is working. While discussing results for the year ended, September 30, Kelly also said the company needs to accelerate execution and  that means the company needs to increase the "pace of execution" and his comments about elements that will be continued include "product rationalization and shift in investment towards investment in growth."

Anybody think more product pruning is ahead? Certainly, disposals were reflected in the results for the year ended September 30 which showed organic revenue of roughly $1.61 billion, up 4.5 percent from fiscal 2013, but down 5 percent from last year's numbers, reflecting discontinued operations. Operating profit was about $342.1 million, an increase of 69.1 percent over the prior year. The company's product-of-the-future, X3, did well, but would have done better except the sluggish French economy held growth to 7 percent. But sales were up 20 percent outside of France. Performance in the Americas was good, although the company took an impairment charge on its Brazilian acquisitions as that country went from 8-percent-to-9-percent annual growth to 1 percent. Still Brazilian revenue was up 9 percent organically, while America's revenue of about $507 million was up 5 percent, meaning, well you know. Figures were not broken out for the U.S. However, revenue growth appears to be coming largely from upgrading customers to premium support.

Read 4254 times
Rate this item
(0 votes)

Visit other PMG Sites:

PMG360 is committed to protecting the privacy of the personal data we collect from our subscribers/agents/customers/exhibitors and sponsors. On May 25th, the European's GDPR policy will be enforced. Nothing is changing about your current settings or how your information is processed, however, we have made a few changes. We have updated our Privacy Policy and Cookie Policy to make it easier for you to understand what information we collect, how and why we collect it.