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SAGE: ORGANIC REVS UP 5.3 PERCENT Featured

Stephen Kelley, SageSage's organic revenue increased by 5.3 percent for the first quarter ended December 31. Sage issued the statement this week as part of its first-quarter trading update.  But North America has been hampered by weakness in the payments business, which CFO Steve Hare said during a conference call comprises about 20 percent of revenue on this continent. Sage expects the business in general and payments specifically to improve in the second half.

Chief Executive Stephen Kelley referred to "Some management changes in the North American business", but mentioned no names. The only one reported by the channel is Joe Langner, EVP of Mid-Market Solutions, who has not responded to an inquiry. "North America needs to pick up over the course of the year," Hare said, and referred to "leadership and execution issues". Sage has also reorganized its finance and legal teams and the executives said that previously finance teams around the world had not reported to Hare's office. Hare also referred to "Huge duplication in the back office" and talked about the company have "19 different performance management systems". Revenue for organic software and software-related services was 1-percent higher than in last year's corresponding quarter. However, in Europe, software revenue got bumped up by activation fees for subscriptions which go into the software category. The bright spot for North America was X3, which also had good performance in South Africa. While Kelley declined to talk about a 100-day plan now in place or changes to the product line, he said the company would "take some of the fragmentation out of the rich set of products that have served us well."

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