SOURCE: Sage Software, Inc.

May 08, 2008 07:00 ET

Sage Software Announces First Half 2008 Results

IRVINE, CA--(Marketwire - May 8, 2008) - Sage Software, Inc. announced today that its UK-based parent company, The Sage Group plc, reported revenues of $1,290.3 million for the half-year ended March 31, 2008, an increase of 9%* over the same prior year period. Adjusted pre-tax profit^ for the period was $278.0 million, an increase of 9% over the prior year period.

Total revenue for the Sage Group's North American business, Sage Software, for the half-year ended March 31, 2008 was flat at $500.7 million, due to revenue performance in its Sage Healthcare Division. Organic revenue growth, excluding Sage Healthcare Division, was 5%*. EBITA† (earnings before interest, tax and net amortization) decreased to $87.8 million, from $94.1 million* in the same period of the prior year. EBITA† margin decreased to 18% from 19%* as forecast, reflecting the company's increased investments in customer service programs.

The North America business achieved growth in its Business Management, Payment Solutions, and Industry and Specialized Solutions divisions. While the Healthcare Division's first half revenue did not meet management forecasts, the business continues to be profitable, and changes made in all areas of the business to improve product functionality, sales effectiveness, customer responsiveness and overall customer experience are taking effect.

"With our renewed focus on customers across the business at Sage North America, we're continually evaluating our products and service experiences to ensure we do our absolute best to meet our customers' expectations," said Sage Software President and CEO, Sue Swenson. "We've recently increased our service staff to be available when our customers need to reach us, and we'll continually assess and update our service to accommodate the changing needs of our customers."

In the first half of fiscal 2008, Sage Software continued to deliver on its strategy of providing integrated solutions to help small and mid-sized businesses (SMBs) and organizations extend and simplify their business processes, delivering its Accpac ERP Extended Enterprise Suite, integrated credit card processing for its Peachtree customers, a new family of Simply Accounting 2008 products, and the latest version of ACT! for Real Estate, among other business management solutions.

Our Industry and Specialized Solutions Division launched new versions of industry-specific solutions in the first half of this year, including Sage MIP Accounting and Sage Fundraising 50 and 100 for nonprofits, a free data conversion service for MasterBuilder construction customers that are converting from Intuit's QuickBooks, a new Sage Payroll Paycards product, and a new online training product to help employers comply with government mandated employee education. Our Healthcare Division, which supports healthcare practices, launched our new Intergy Practice Portal, providing a secure online system that improves how medical groups communicate with their patients.

*Foreign currency results for the prior half-year ended March 31, 2007 have been retranslated based on the average exchange rates for the half-year ended March 31, 2008 to facilitate the comparison of results. The translation rate is 2.0148 U.S. dollars per GBP.

^Pre-tax profit (PBT) figures stated prior to amortization of intangible fixed assets and neutralization of foreign exchange movements.

†Earnings before interest, tax and amortization of intangible fixed assets.

About Sage Software

Sage Software supports the needs, challenges and dreams of nearly 2.9 million small and medium-sized business customers in North America through easy-to-use, scalable and customizable software and services. Our products support accounting, operations, customer relationship management, human resources, time tracking, merchant services and the specialized needs of the construction, distribution, healthcare, manufacturing, nonprofit and real estate industries. Sage Software is a subsidiary of The Sage Group plc, a leading global supplier of business management software and services to small and medium-sized businesses. Formed in 1981, Sage was floated on the London Stock Exchange in 1989. Sage Group now has 5.7 million customers and employs over 14,800 people worldwide. For more information, please visit the web site at or call (866) 308-2378.

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