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American Results Weaker than Sage Top Line

sage logoAlthough Sage improved profitability and cut its revenue decline worldwide, revenue in North America still dropped at a faster rate than the rest of the company for the half ended March 31. Organic North American revenue dropped 5 percent, compared to the year ago half.  But that was better than the 8 percent decline for the last half of fiscal 2009 which ended on September 30.

The release of the half-year results follow on April's announcement that Paul Walker, who has served as chief executive for 16 years, will leave the company when a replacement is found.

North American revenue fell to about $428.7 million, down 6 percent over the same period a year earlier. Revenue for Sage Business Solutions, the largest U.S. division, dropped 6 percent organically. The division handles most accounting software products such as the MAS line, Accpac and Sage Pro.

The North American EBITA margin for the most recently completed half was 22 percent, compared to 18 percent a year ago. Excluding last year's restructuring charges, that metric was 20 percent. Worldwide, the Sage Group reported revenue of $1.14  billion, down 3 percent from a year ago at constant exchange rates. The EBITA margin was 25 percent, up from 23 percent a year earlier.


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