Sage has begun selling Sage 50 (the former Peachtree in the United States and former Simply Accounting in Canada). The company has seen "some displacement" in North America, Hare said, referring to revenue moving from license sales to subscriptions. "In the U.S., it's not reactivation, it's a switch," he commented. The update showed that the recently ended quarter was better than in the nine months, with organic revenue for that period up 6.6 percent. Revenue from software and software related services remained sluggish, rising 2 percent for the nine months and 1.2 percent for the quarter. However, that was still better than a 3.4-percent drop in such revenue for the year-earlier third quarter. Hare said Sage will not force users to the cloud and will continue to sell licenses as required. But he added Sage could have higher growth rate by putting a push on license sales and it will not take that route. He predicted Sage will have quarters in which license revenue drops.Last modified on Friday, 31 July 2015
SAGE ORGANIC REVS UP 7.3 PERCENT Featured
Sage says that organic revenue grew by 7.5 percent for the third quarter ended June 30, driven by a 34.2-percent rise in subscription revenue. Sage provided the information in a webcast of a recent trading update for the quarter. In trading updates, European companies do not provide earnings and revenue amounts. Much of the growth came in the United States and France, according to CFO Stephen Hare. However, Hare said, "We have started to see some impact in North America, where we have started to push upgrades and reactivation of Sage 50."