Sage issued an interim management statement on Monday July 16, 2012.
Interim Management Statements give performance data and portfolio information as at the end of the first and third quarters of a company’s financial year.
The statement doesn’t go into specifics on financial performance but instead serves as an opportunity to provide advanced indications of change from expectations.
According to the release -North America is showing sequential quarter to quarter improvement.
The growth in Europe seems to be a bit below expectations as described in the statement as:
Overall performance in Europe has been flat and the anticipated improvement in growth over the first half has not yet materialised.
Guy Berruyer, Sage Chief Executive, summarized:
The main trends we highlighted at our interim results in May continue to be a feature of our trading performance. Whilst we remain cautious on the outlook for Europe, and watchful of this region’s economic climate, the strong fundamentals of our business model remain and we continue to make good progress in executing against our business priorities. We look forward to tomorrow’s investor day where we will be sharing our plans for the future growth of the business.
Sage’s investor relations web page is now indicating that an Interim Management Statement is due on July 16, 2012.
This routine statement sets investor expectations as to what Sage believes their full earnings should be.
Sage IMS July 2012
Sage today is reporting 6 month unaudited earnings through March 31, 2012 (aka H1 2012) – adding 129,000 new paying customers H1 2012 vs 131,000 in H1 2011. Overall organic revenue growth is reported as 2% H1 2012 vs 5% in H1 2011.
Reuters is reporting that Sage’s earnings missed forecasts and that as a result share price is down.
Total revenue growth rates in North America appear to be flat with organic subscriptions growing 2% vs 4% in H1 2011. Notably Sage is ramping up for an North America imminent launch of SageOne, their pure SaaS entry level accounting offering.
Some interesting takeaways from the report (which you can download here). Where bolding is added that is my emphasis to what I consider the key takeaways as they relate to Sage performance in North America:
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