Irvine, Calif. - December 9, 2003 - Best Software, Inc. (Company
Profile, Past
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Studies), today announced that its UK-based parent company, the Sage Group plc, reported revenues of *$899.7 million for the year ended September 30, 2003, an increase of 4% over the same prior year period (at constant exchange rates**). Operating income for the period was *$250.3 million, an increase of 12 percent over the prior year period, and the company added 233,000 new customers during the year, as well as 400,000 customers through acquisition after the year-end, bringing its total to over 3.6 million customers worldwide.
Total revenue for the Sage Group’s U.S. businesses for the year ended September 30, 2003, was *$424.7 million, and operating income was *$99.1 million, increases of four percent and 17 percent, respectively, over the same period of the prior year.
“Even in a tough economy, our business continues to grow,” said Best Software CEO Ron Verni. “We are continuing to deliver on our stated strategy of supporting our customers through the life of their business, providing solutions through a vertical industry focus, and pursuing an acquisition strategy.”
During 2003, U.S. revenues grew by 4% and represented 47% of the Sage Group revenues. Best Software’s accounting business grew revenues by 2%, while its CRM business grew revenues 13%. Overall U.S. operating margins grew to 23%, compared to 21% in 2002, led particularly by the improvement of CRM margins to 18%, compared to 14% in 2002. Overall, U.S. operating profits grew 17%.
According to Verni, revenues in the accounting business were driven by the firm’s core accounting range. The CRM business performed particularly well, due to the success of its upgrade programs, including compelling new features for customers of the ACT! contact management product.
As part of its ongoing strategy to offer small business customers industry-specific products and services that give them the insight to manage and grow their operations, Best Software announced more than 37 new products and product enhancements during the year. Many of them delivered on the company’s focus for providing industry-specific business management tools, such as its October 2002 introduction of Peachtree Premium Accounting for Manufacturing 2004 and Peachtree Premium Accounting for Distribution 2004.
The company also continued to pursue in 2003 its aggressive acquisition strategy. Its most recent U.S. acquisition was of Timberline Software Corporation, a leading supplier of integrated financial and operations software and services for small to mid-sized businesses in the construction and real estate industries. The merger, approved by Timberline shareholders on September 19, added more than 20,000 customers worldwide. Overall, during 2003, Best Software added 97,000 customers in the U.S., excluding the CRM products which are sold to individuals rather than businesses.
Best Software also made considerable progress during the year in consolidating its U.S. business into two divisions, one addressing smaller businesses and another addressing mid-sized businesses.
*2002 comparatives exclude the $9.6 million one-off expenditure on sponsorship of The Sage Gateshead music centre in the UK.
**All dollar amounts for The Sage Group plc were calculated at an exchange rate of 1.6058 for U.S. dollars per GBP.
About Best Software
Best Software offers leading business management products and services that give nearly 1.8 million small and mid-sized customers in North America the insight for success throughout the life of their business. Its parent company, The Sage Group plc (London: SGE.L), supports over 3.6 million customers worldwide and has revenue of approximately $899.7 million. For more than 25 years, Best Software has delivered easy-to-use, scalable and customizable applications through its portfolio of leading brands, including Abra, ACT!, CPASoftware, FAS, MAS 90, MIP, Peachtree, Timberline and SalesLogix, among many others. For more information, please visit the Web site at www.bestsoftware.com/moreinfo or call (866) 308-BEST.
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