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SAGE CUTS 500 JOBS

Faced with sharp declines in its software business, Sage North American cut 500 jobs as its parent, the English-based Sage Group, announced results for its first half ended March 31.

Another 200 jobs were cut in England as the company reported global revenue of $1.1 billion for the half was down 3 percent from a year earlier, while EBITA of $249.2 million was down 6 percent. North American revenue was $450.5 million and EBITA $79 million, both down 9 percent. About $73.8 million (translated from pounds) in costs were cut with roughly two-thirds in North America.

Partner Insights

NETSUITE LOSSES RISE

NetSuite reported larger loss for the first quarter ended March 31, although revenue rose 22 percent for the period.

The GAAP loss increased to $3.9 million, up from $2 million in last year's corresponding period, although the company highlighted the fact that it had a non-GAAP profit of 2 cents per share, the second consecutive quarter that occurred. Meanwhile, revenue rose to $41.6 million in the most recently ended period, up from $34.1 million a year ago. In a conference call, CFO Jim McGeever said the company's largest growth is among customers spending more than $100,000 annually.

SAGE REORGANIZES

Sage North American massively revamped, throwing away a two-year old division structure, as it combined the Business Management Division and Specialized Products Division into the Sage Business Division.

The new group is headed by Jodi Uecker-Rust, an industry veteran who joined the company earlier this year. Uecker-Rust had been acting president of BMD. Doug Meyer, a longtime Sage and Peachtree executive, who had been president of ISP, was given the newly created position of chief customer officer.

DELTEK NET DROPS

Net income for Deltek, which makes financial software for project-oriented companies, fell by 34 percent for the first quarter ended March 31 while revenue dropped 10.6 percent.

Deltek took a big blow from troubles in the architectural and engineering market, the primary target for its Vision software. Net income was $2.7 million, down from just over $4 million in last year's corresponding period. Revenue dropped to $62 million, from $69.4 million a year ago. Meanwhile, license revenue fell to $11.2 million from just over $17 million. The company said that resellers accounted for 8 percent of license revenue, which was consistent with the year-ago quarter.

EXACT PLANS NEW GLOBE

Exact Software plans to re-introduce its Globe application to the United States in the next few months, following what the company admitted was a troubled effort more than two years ago.

"There was an aborted attempt to bring Globe to the Americas a couple of years ago. The product was not brought up to snuff for the Americas," said Harry Merkin, VP of marketing. Globe, an Internet-based financial application, was not localized for the U.S. market. Merkin said the new version will be "an American-capable version." He also said Globe is not designed to replace Exact's Macola software line.

BLACKBAUD NET FALLS

Blackbaud, a nonprofit software vendor based in Charleston, S.C., reported net income of $4.1 million for the first quarter ended March 31, a drop of 42 percent from just over 7 million a year earlier.

Revenue rose to $74.7 million, up 7.6 percent from $69.4 million for last year's corresponding period, an increase due primarily to subscription revenue, which nearly doubled to $16.7 million. That countered a 23 percent drop in license revenue, which fell to $7.4 million in the most recently ended period, down from $9.6 million a year earlier.

GRASS LEAVES SAGE

Karl Grass, who had headed Sage's payroll business as an SVP and general manager, has left Sage North America, after a year in which Sage sold much of his business.

In August, it sold its service bureau operation to CompuPay. In March, Empower (formerly known as Empagio) purchased Sage's payroll tax filing business. Before he came to Sage, Grass was a vice president and general manager at Intuit. He was previously a partner at Arthur Andersen.

Starting next month, Accounting News and other Accounting Technology stories will move to our sister publication, Accounting Today. Send tips to Senior Editor Alexandra DeFelice, alexandra.defelicesourcemedia.com.

(c) 2009 Accounting Technology and SourceMedia, Inc. All Rights Reserved.

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