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EUROPE DRIVES SAGE GROWTH Featured

Steve Hare, SageBusiness in Europe was a major factor in a 6.6-percent increase in organic revenue for Sage's first quarter ended December 31. The company said this week that a 10.4-percent rise in organic recurring revenue was driven by a 35.7-percent hike in subscription income. The first quarter "does represent good progress," CFO Steve Hare said during a webcast of the trading update. In trading updates for the first and third quarters, European companies do not release actual revenue and earnings.

Hare gave no specifics about North American performance other than saying the change "was in line with 2015 growth."For  individual products, Hare said X-3 grew "around double digits" (which means not double digits or he would have said so, I assume). He termed that performance "fine" but said the manufacturing product is not performing consistently across Sage's regions. Sage One has "sort of similar momentum to what we had in year end," he said, but added in the United States that "the numbers are small" despite improvement. The company puts more effort into multiple channels in this country, including the accountant channel. Efforts continue to drive business towards subscriptions, except for X3 where the larger prospects are more resistant to moving away from license sales. Sage also has a strong effort on reactiviations—persuading companies that use its products to buy new maintenance and support contracts. Hare discussed the sale of Sage Live through the Customer Business Centers in Atlanta, Ga., and Dublin, Ireland, with digital marketing support going through those centers. He added, "We will be looking to introduce other products through business centers, probably starting with Sage One", but gave no time frame.

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