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SAGE REVENUE PICKS UP IN 3Q Featured

Steve Hare, SageAfter an unexpected slip in revenue goals for the first Half, Sage said it has moved back on plan. The comment was made this week by CFO Steve Hare during a trading update for the third quarter ended June 30.

“We did catch up on some of the slippage in Q3,” Hare said during a conference call. He referred to “Strong performance across the board in the U.S., Canada and Intacct.” Revenue increased 6.8 percent over the third quarter of fiscal 2017, which put the revenue for the nine months at 6.5 percent up from last year’s corresponding period. In trading updates, European companies do not typically provide revenue and earnings numbers. Enterprise Management (formerly X-3) is a major growth driver with most of the revenue coming from license sales, not cloud subscriptions. Hare said there had been some slippage in targets in Africa, the Middle East and “some degree in the U.S.” The company had dismissed up a number of executives in EM operations to attempt to correct issues. Hare said that Sage is flattening its organization. “We have been hiring less people than we are losing,” he said. Hare did not spell out the problems with EM targets in this country. He described the U.S. situation this way:  “In the U.S. we have good visibility. We have started to convert more of the opportunities. There is still pent to do. … The level of license revenue is expected to pick up in Q4.”

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