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SAGE RESULTS DOWN, BUT ...

Paul WalkerSage North America reported its revenue for the year ended September 30 fell by 10 percent from 2008 results. And that's not great news, but given a not great year, it wasn't out of line with other vendors.

 

Microsoft Dynamics revenue was down 6 percent for its September quarter, and off 7 percent for the year ended June 30. Exact saw an 8.6 percent drop, while Deltek results were down 9.6 percent and Epicor's off 27 percent, all for the September quarter. Sage North America’s revenue fell to $889.4 percent while the EBITA margin dropped to 18 percent, down from 20 percent, including the expenses associated with the year's large job cuts. The parent Sage Group reported revenue of $2.22 billion, a 1 percent gain over fiscal 2008 at constant currencies. Its EBITA margin dropped to 22 percent from 23 percent. Organic software and software-related revenue was off 23 percent in North America. In a Webcast, chief executive Paul Walker said the fourth quarter was better than the second and third quarters, not great, but results had bottomed out. Product line information was sparse. Revenue for the Business Solutions Division, which sells the mid-market accounting products, CRM and construction software, was off 11 percent. Sage said the small business products, the Peachtree and Simply Accounting lines, were "resilient", and there the company had previously said Peachtree has shown increased sales, while the nonprofit accounting products showed modest growth. Overall, executives reported the company maintained its small business software market share.
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