Contact Information: Press Contacts: John Schoutsen Vice President, Corporate Communications Sage Software (905) 267-2873 john.schoutsen@sage.com Shana Keith Account Manager Porter Novelli (404) 995-4557 shana.keith@porternovelli.com
Sage Software Exceeds $1 Billion in 2007 North America Revenue
Sage Group plc Exceeds $2.29 Billion Worldwide
| Source: Sage Software
IRVINE, CA--(Marketwire - November 28, 2007) - Sage Software, the North American business of
the Sage Group plc (LSE : SGE ), announced today that total revenue for the
fiscal year ended September 30, 2007 was $1.01 billion, and EBITA (earnings
before interest, tax and amortization, which excludes the effects of
amortization of acquired intangible assets and the net amortization or
capitalization of software development expenditure) was $198.1 million,
increases of 54%* and 28%*, respectively, over the same prior year period.
UK-based The Sage Group plc reported global revenues of $2.29 billion for
the year ended September 30, 2007, an increase of 30%* over the same prior
year period (at constant exchange rates*). EBITA for the year was $561.2
million, an increase of 19%* over the prior year, and the company added
319,000 customers during the year, bringing its total to 5.5 million
businesses worldwide, excluding ACT! customers.
"Our business in North America continues to be strong with a solid
divisional structure that is focused on meeting the needs of our customer
segments," said Sage Group CEO Paul Walker. "We are evolving the
organization to drive this customer-connected approach even more strongly
for the year ahead."
During 2007, North American revenues represented 44% of the Sage Group's
global revenues. Overall North American EBITA margins decreased to 20% from
24% due to the dilutive effects of prior year acquisitions, primarily
Emdeon Practice Services (now Sage Healthcare Division). Excluding this
dilutive effect, North American EBITA margin was maintained at 23%.
In 2007, Sage Software continued its strategy of offering small and
mid-sized businesses the broadest range of business management
applications, releasing dozens of new or upgraded products for general
business and the specialized needs of the construction, distribution,
healthcare, manufacturing, nonprofit and real estate industries.
In addition, the company established a new, four-division structure in May
2007 to better address its customers by aligning business units more
closely to its customer segments. The company's new Business Management
Division brings its accounting, ERP, CRM, and related businesses into a
single organization to serve the needs of small and mid-sized businesses
(SMBs) with core business management solutions. The new Industry &
Specialized Solutions Division provides industry-specific solutions for
businesses and organizations in the construction, real estate, and
nonprofit industries, as well as serving businesses of all types with human
resource management systems, online payroll services and other
employee-management solutions. The two new divisions joined the company's
existing Healthcare Division, which serves healthcare practices, and the
Payment Solutions Division, which supports merchants' payment processing
needs.
Underscoring its commitment to surrounding customers with the tools for
long term success, the company also launched its Sage 360° marketing
campaign (www.sage360.com). In addition, the company's industry-leading
business partner programs gained further recognition with Company of the
Year honors from industry journal VARBusiness in its Annual Report Card
program.
* Results are in USD using an annual average exchange rate of 1.98 USD per
GBP.
About Sage Software
Sage Software supports the needs, challenges and dreams of more than 2.8
million small and mid-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 part of The Sage Group plc, a
leading global supplier of accounting and business management software
solutions and related products and services for small and mid-sized
businesses. Formed in 1981, Sage was floated on the London Stock Exchange
in 1989 and the Group now has 5.5 million customers and employs over 13,900
people worldwide. For more information, please visit the Web site at
www.sagesoftware.com/moreinfo or call (866) 308-2378.
© 2007 Sage Software, Inc. All rights reserved. All other brands are
trademarks of their respective companies.