SOURCE: Sage Software

November 30, 2005 10:00 ET

Sage Software Reports Record Year in 2005

$585 Million Revenue in North America; Parent Exceeds $1.4 Billion Worldwide

IRVINE, CA -- (MARKET WIRE) -- November 30, 2005 -- Sage Software announced today that its UK-based parent company, The Sage Group plc, reported revenues of $US1.4 billion for the year ended September 30, 2005, an increase of 14%* over the same prior year period (at constant exchange rates*). Operating profit for the year was $390.9 million, an increase of 14%* over the prior year, and the company added 300,000 customers during the year, bringing its total to 4.7 million businesses worldwide, excluding CRM customers.

Total revenue for the Sage Group's North American business, Sage Software, for the year ended September 30, 2005, was $584.7 million, and operating profit was $136.6 million, increases of 13%* and 22%*, respectively, over the same prior year period.

"Our business continues to grow on the strength of our unwavering focus on the needs of small and mid-sized businesses and on our key assets -- an expanding customer base, innovative software designed to accommodate our customers' needs for today and growth for tomorrow, and a North America-wide network of high quality business partners," said Sage Software CEO Ron Verni.

During 2005, North American revenues grew by 13%* and represented 41% of the Sage Group's global revenues. Overall North American operating margins increased to 23% from 22% in the prior year, as a result of profitable growth in the core businesses as well as improving margins in the acquired (2004) Accpac business.

In 2005, Sage Software continued its strategy of offering small and mid-size businesses the broadest range of business management applications tailored to industry-specific needs, releasing dozens of new or upgraded products for general business, non-profits, manufacturers, distributors, construction and real estate companies, and accounting practices.

Sage Software expanded its product portfolio during the year with the November, 2004 acquisition of Federal Liaison Services, Inc., a payroll services supplier.

The company delivered major upgrades of its small business software products, including ACT! by Sage 2006, Peachtree by Sage 2006, and Simply Accounting by Sage 2006, and continued to expand its nationwide network of resellers, software developers, accountants and consultants that support millions of users of these products.

Sage Software delivered key new releases of its mid-market business management products, including Sage Online Payroll Services, enabling companies to outsource their payroll while maintaining integration with their in-house accounting system; major upgrades to the MAS 90, MAS 200, and MAS 500 accounting systems for small and mid-sized companies; upgrades to Sage CRM SalesLogix; and the launch of SageCRM.com that provides small and mid-sized businesses with a full suite online CRM subscription service. SageCRM.com was selected as the best hosted CRM solution in head-to-head comparisons conducted by Network Computing magazine in September, 2005.

The company also continued its on-going focus on quality customer services in 2005, ranging from industry standard certifications for its award-winning technical support teams to the company's first combined user conference, Sage Summit, that attracted 2700 attendees in November 2005.

Sage Software, previously operating as Best Software, introduced the new Sage Software company name in 2005 and re-launched its market-leading product lines with the Sage brand. The brand transition is expected to be complete in early 2006.

* Results are in USD. Results for the year ended 30 September 2004 have been retranslated based on the average exchange rates for the year ended 30 September 2005 to facilitate comparison of results: 1.8515 USD per GBP.

About Sage Software (formerly Best Software)

Sage Software offers leading business management software and services that support the needs, challenges and dreams of more than 2.4 million small and mid-sized business customers in North America. Its parent company, The Sage Group plc (LSE: SGE.L), supports 4.7 million customers worldwide. For more than 25 years, Sage Software has delivered easy-to-use, scalable and customizable software for accounting, customer relationship management, human resources, time tracking and the specialized needs of accounting practices and the construction, distribution, manufacturing, nonprofit and real estate industries. For more information, please visit the Web site at www.sagesoftware.com/moreinfo or call (866) 308-2378.

© 2005 Sage Software, Inc. All rights reserved. All other brands are trademarks of their respective companies.

Contact Information

  • Press Contacts:

    John Schoutsen
    Vice President, Corporate Communications
    Sage Software
    (905) 629-7959, x301
    Email Contact

    Shana Keith
    Account Manager
    Porter Novelli
    (404) 995-4557
    Email Contact