Using Extended Solutions? Sage ERP MAS Q4 2010 IRD (Interim Release Disk) Requires These Updates
December 29, 2010
Sage have issued their 2010 Q4 IRD (Interim Release Disk) which is a download available for users of supported Sage ERP MAS 90 and MAS 200 accounting software who need to update the tax processing aspects of their system.
For supported versions of Sage ERP MAS 90 and MAS 200 (versions 4.x +) this primarily involves changes to the 1099, Electronic Reporting and Payroll Reporting modules. There are other changes included in the IRD as well. Here’s a copy of Sage’s 2010 MAS90 and MAS200 Year End Reporting Instructions.
However if you are using any third party enhancements you must first check with your developer prior to installing the IRD. These enhancements also include any pre-written Extended Solutions (whether sold to you directly by Sage or by a third party developer after Sage exited the Extended Solution business).
Sage’s list of Extended Solutions requiring an upgrade centers primarily around Payroll module enhancements though there are numerous Sales Order (version 4.3) that may require updating as well.
One popular enhancement, PR-1017 Direct Deposit Interface, is noted as requiring an upgrade by any users of the enhancement who are also on version 4.0 to 4.2 of Sage EPR MAS 90 or MAS 200.
Prior to installing this IRD please speak to your Sage Business Partner, speak to any third party solution providers whose applications you’re using and review this list from Sage of Extended Solutions Requiring Upgrade prior to installing the IRD for Q4 2010.
CT Stops Mailing Tax Forms To Individual Taxpayers
December 28, 2010
The Connecticut Department of Revenue Services (DRS) today announced that the agency will no longer directly mail tax booklets to individual taxpayers. This change was made due to the continued growth of electronic income tax filing, and to reduce mailing and printing costs for the agency. The IRS and several other states have recently made similar decisions.
Taxpayers that still need a booklet will be able to obtain one from their local library, post office, or town hall shortly after the beginning of the new year, or they may download forms and instructions from the DRS website at www.ct.gov/DRS.
Last filing season, 1.6 million personal income tax returns were filed with DRS DRS estimates that of the 1.6 million, approximately 125,000 returns, or 8%, were attributable to mailed books.
Electronic filing of income tax returns has grown rapidly during the past few years. Last year, more than 1.2 million tax returns were filed electronically.
In addition to downloading paper forms at www.ct.gov/DRS, taxpayers can learn about locations where tax booklets will be available, electronic filing through the state’s free Taxpayer Service Center, and other electronic filing methods like Fed/State e-file and tax preparation software. The site also offers information about the free Volunteer Income Tax Assistance program for low income individuals and the Tax Counseling for the Elderly program.
via – CT Department of Revenue Services
link – Download CT Individual Tax Forms – 2010
How To Process Payroll Before W2′s Are Printed Within Sage ERP MAS 90 or MAS 200
December 28, 2010
This year the rates have changed for the 2011 FICA however the wage limits remained stable. This has caused a few people over on the MAS 90 LinkedIn group to question the correct procedure for printing W2 forms.
As you may be aware one of the hidden “gotcha’s” of the Payroll processing is that when you print W2 forms in Sage ERP MAS 90 or MAS 200 that the CURRENT FICA/Medicare limits are used to establish the maximum wages subject to each tax which prints on the W2 form.
Since tax tables are shared globally across all your Sage ERP MAS 90 and MAS 200 companies – simply copying the current company code to a backup isn’t enough. You also must be aware of what the tax limits are for at least FICA and Medicare because those limits can impact W2 printing for those exceeding them.
If the FICA or MEDICARE limits are changing in the next year — AND you install the tax tables BEFORE printing the last year’s W2 forms then you run the risk of the W2 form (for those exceeding FICA and/or Medicare) printing the maximum wage limit that’s included in your next year tax table instead of the limits for the year just passed.
Regina Gutcher, a Sage Customer Support Specialist, provided the following guidance on this LinkedIn discussion:
The recommended procedure if you need to run a 2011 payroll before printing 2010 W-2s is:
1. Back up all Payroll data.
2. Create a new company code in Company Maintenance. Copy Company to copy P/R, C/I and G/L (and Job Cost, if integrated).
3.. Run year-end for the original company.
4. Install the updated 2011 tax tables.
5.. Process payroll for the original company for the current year.
6.. Before printing the W-2s, install last year’s tax tables(2010) and access the Copy Company.
7. Reinstall the updated tax tables when finished.
Keep in mind that FICA is not the only limit we need to be concerned about when printing W-2s. For some states, the limits for State Disability or State Unemployment may also need to be printed on the W-2.
via: LinkedIn
Join MAS90 LinkedIn Group
Sage ERP MAS 90 and MAS 200 Product Brochures (Download)
December 28, 2010
Are you looking for brochures, what’s new guides, enhancement summaries, and other printed publications describing the Sage MAS 90 and MAS 200 products?
Sage have compiled a nice listing of all their printed media — which now is available for download as PDF files for easier (and faster) viewing as well as the ability to share with friends (they make great Christmas gifts too!).
Visit Sage’s MAS 90 and MAS 200 Brochure and Whitepaper site
Sage ERP MAS 90 and MAS 200 v4.4 Product Update 4 – What’s New
December 28, 2010
Sage just uploaded their latest product update for Sage ERP MAS 90 and MAS 200 version 4.4. This release was previously announced as containing fixes centered around the year end processing time.
Instead of introducing new features which might carry pesky bugs and increase support burdens – Sage have wisely decided that product update 4 will primarily be to fix open issues as well as add any needed functionality for those closing the year and preparing year end governmental reporting.
Here’s a concise summary of what you can expect in product update 4.
MAS90 and MAS200 4.4 Product Update 4 What’s New
MAS90 News Alerts – Updated For 2011
December 27, 2010
Starting with the January 15, 2010 issue of the Schulz Consulting Email newsletter we will switch from publishing twice monthly to publishing an email newsletter just once a month on the 15th.
We are expanding the ways that you can stay up-to-date with news from Schulz Consulting and continue to post regularly to the following locations which will carry the same news as what you are reading on our web site.
You can continue to visit Schulz Consulting for the latest news and analysis about MAS 90 and MAS 200. Or if you prefer to continue receiving alerts as we post news to our website – we suggest you visit Google’s Feedburner and sign up for free email alerts. Using this service you’ll receive a notification via email every time we post a news item on our web page.
Google will also allow you to subscribe to our feed in your favorite RSS reader (If you’re not sure what RSS is – here’s a link from Wikipedia which explains it).
We also post MAS 90 news items from our web site automatically to:
Facebook Schulz Consulting Group
MAS90 and MAS200 2010 IRD Tax and Reporting Update Instructions (How To)
December 27, 2010
Sage North America have released their IRD (Interim Release Disk) which contain year end program changes for Accounts Payable and Payroll modules. These changes add functionality to the ERP system which allow for processing according to updated federal and state government regulations concerning 1099, W-2 and other tax forms.
The IRD contains year end program changes for AP and PR and common files for the following versions:
- Sage ERP MAS 90 / 200 Versions 4.40
- Sage ERP MAS 90 / 200 Versions 4.40 with PU 1
- Sage ERP MAS 90 / 200 Versions 4.40 with PU 2
- Sage ERP MAS 90 / 200 Versions 4.40 with PU 3
- Sage MAS 90 / 200 Versions 4.30 with SU 17
- Sage MAS 90 / 200 Versions 4.30 with SU 18
- Sage MAS 90 / 200 Versions 4.30 with SU 19
- Sage MAS 90 / 200 Versions 4.30 with SU 20
- Sage MAS 90 / 200 Versions 4.20
- Sage MAS 90 / 200 Versions 4.10
- Sage MAS 90 / 200 Versions 4.05
- Sage MAS 90 / 200 Versions 4.00
- Sage MAS 90 / 200 SQL Versions 3.74
- Sage MAS 90 / 200 SQL Versions 3.73
Payroll Update 2nd Quarter
If you have installed the Product Update 3 for version 4.40 these changes have been included in the final released product.
A download with payroll updates for Federal 941 2nd quarter 2010 was made available via the website. This payroll update included adding a new data table, program and form changes to adhere to the Federal requirements under the 2010 Hire Act used for reporting employer exemptions for qualified employees. If you have installed the Product Update 3 for version 4.40 these changes have been included in the final released product.
Some changes included in the Payroll Update.
- Qualified (W-11) checkbox added to employee maintenance.
- PR_QExxx.soa data table.
- Update and 941 program change logic.
- 2010 2nd QTR 941 form change logic.
Note: For details refer to PR3035-KBA available on
http://www.sagesoftwareonline.com/eServices/Main/frmLogin.aspx
Electronic Reporting for MAS90 and MAS200
- 1099 Electronic Reporting has been modified according to the Internal Revenue Service’s 2010 Publication 1220.
- W2 Electronic Reporting has been modified according to the SSA 2010 Specifications for Filing Form W-2 Electronically.
Qualified Employee Worksheet and Report
- A Qualified Employee Worksheet and Report has been installed to the reports directory. This report is a visual display of the PR_QExxx.soa table that was created to capture data for reporting of qualified employees.
- The report only displays for employees that have been selected as Qualified in employee maintenance.
- The amounts on this report do not reflect the FICA limits.
- The number of qualified employees per quarter is calculated at runtime. This number is not retained in a data file when printing the 941.
To download the latest Sage MAS90 and MAS200 IRD visit the Sage Software Online Support Site (valid maintenance subscription and login required)
Sage ERP MAS 90 and MAS 200 Tax Table Download For 2011 – Available New
December 22, 2010
Sage have just released round one of their tax table updates for 2011. Due to late breaking tax changes you may need to download additional table updates if your local (or federal) government provides additional data on rates or changes after these tables have been downloaded.
Here’s what the latest tables include (all information is per Sage’s online knowledgebase and subject to change – always verify rates and rules with your tax advisor or your states tax site. Schulz Consulting is NOT in the business of rendering tax or accounting advise and disclaims all results from use of the information below. THE INFORMATION CAN CHANGE FREQUENTLY – ALWAYS VERIFY THAT YOU HAVE THE LATEST CORRECT DATA).
Changes include:
Federal Withholding tables updated as of 12/23/2010 (Tip: Always check the first payroll run manually)
Federal Dependent Exemption – $ 3,700
Federal Non-Resident Alien Wage adjustment increase – $2,100
Federal EMPLOYEE FICA rate decrease to 4.2%
Federal EIC Advance payment of earned income credit (EIC) expries 12/31/10
STATES
Hawaii – Dependent exemption increase to $1,144
Maryland – Withholding tax tables changed per rules
Maine – Revised: Nonresident alien wage adjustment for married decreases – $5,800
North Dakota – Withholding tax tables changed per rules
North Dakota – Dependent exemption increase
Oklahoma – Withholding tax tables changed per rules
Changes Implemented 12/17/2010:
Alaska – Unemployment insurance wage base increase to $34,600
Alaska – Employee UI tax rate increase to .58%
Arizona – New filing status G – .8%
California – Withholding tax tables updated as of 12/17/2010
California – Standard deduction increase – $7,340 and $3,670
California – Personal exemption increase- 108.90
California – Low income exemption increase - 24,364 and 12,182
California SDI rate increase (taxable wage base remains $93,316 and 1.2%
Hawaii Temporary disability insurance wage base decrease Annual – 45,983.08 – Week – 884.29
Hawaii UI wage base decrease 34,200
Iowa UI wage base increase 24,700
Illinois UI wage base increase 12,740
Indiana UI wage base increase 9,500
Kentucky Standard exemption increase 2,240
Maine Withholding tax tables
Maine Filing Statuses added for Nonresident Alien – Single (NRS) and Nonresident Alien – Married (NRM)
Michigan Dependent exemption increase 3,700
Minnesota Withholding tax tables
Minnesota Withholding allowance increase 3,700
Mississippi UI wage base increase 14,000
Montana UI wage base increase 26,300
North Dakota UI wage base increase 25,500
New Hampshire UI wage base increase 12,000
New Jersey UI wage base decrease 29,600
New Jersey Temporary Disability Insurance (TDI) wage decrease 29,600
New Jersey Family Leave Insurance (FLI) wage base decrease 29,600
New Jersey Family Leave Insurance (FLI) contribution rate decrease .06%
New Mexico UI wage base increase 21,900
Nevada UI wage base decrease 26,600
Oklahoma UI wage base increase 18,600
Oregon Withholding tax tables
Oregon Filling Statuses added for wages over $50,000:
M1 Married
S2 Single with less than 3 allowances
S3 Single with 3 or more allowances
Oregon Dependent exemption increase 179
Oregon Standard deduction increase Married 3,960
Single 1,980
Oregon UI wage base increase 32,300
Rhode Island Withholding tax tables
Rhode Island Dependent exemption decrease 1,000
Rhode Island Supplemental rate decrease 5.99%
Rhode Island Temporary Disability Insurance (TDI) wage base increase 58,400
Rhode Island TDI rate increase 1.3%
South Carolina UI wage base increase 10,000
South Dakota UI wage base increase 11,000
Utah UI wage base increase 28,600
Vermont UI wage base increase 13,000
Washington UI wage base increase 37,300
Wisconsin UI wage base increase 13,000
Wyoming UI wage base decrease 22,300
LINKS:
Current list from Sage of all payroll tax table changes
Instructions on downloading the tax tables for MAS 90 and MAS 200 (These updates may be used for Library Master versions 4.x and 3.72, 3.73 and 3.74).
Multi-Bin for MAS 90 and MAS 200 v4.4 Available
December 14, 2010
Sage partner Hightower Inc have just announced that their Multi-Bin for Sage ERP MAS90 and MAS200 version 4.4 is available.
The feature adds the ability to track multiple bin locations per warehouse for specific MAS 90 or MAS 200 inventory items as described below:
Inventory Management
The Sage MAS 90 and Sage MAS 200 Inventory Management module provides receipt of goods data, the movement of goods within or between locations, the sale, removal of goods, and the precise valuation and status of goods remaining in inventory at any point in time. When integrated with Multi-Bin Advanced Distribution, you will be able to track multiple bin locations per warehouse per item.
Sales Order
With the Sage MAS 90 or Sage MAS 200 Sales Order module, you’ll know the availability of specific units in inventory, or alternate items if an item is out of stock, specific customer pricing, customer credits, and much more, while entering orders. With Multi-Bin Advanced Distribution, you can mark inventory items involved in sales orders as allocated. Allocated inventory items are not available for purchase by other customers until you release the items.
Purchase Order
Streamline and organize your entire purchasing process – track shipping methods, track the date a purchase is required, track the name of person that places the order, and confirm the quantity ordered and the price. Multi-Bin Advanced Distribution modifies the Sage MAS 90 or Sage MAS 200 Purchase Order module to utilize bin locations for receipt of inventory items. Bin locations are also utilized for return of goods and material requisition entries.
Bill of Materials
Sage MAS 90 and Sage MAS 200 Bill of Materials allows you to easily create and maintain a detailed bill of components and miscellaneous charges that make up your finished items and subassembly components. Multi-Bin Advanced Distribution module integrates with Bill of Materials so bin quantities can be tracked throughout the production and disassembly processes.
Return Merchandise Authorization (RMA)
With RMA, once an item is returned, Sage MAS 90 and Sage MAS 200 will automatically generate all appropriate transactions, including credit memos, replacement orders, purchase orders, and vendor returns. Multi-Bin Advanced Distribution integrates with the Return Merchandise Authorization module so that quantity can be distributed to bins before transactions are generated.
Work Order
Issue work orders, develop schedules, and track costs associated with the manufacturing process. Sage MAS 90 and Sage MAS 200 Work Orders gives you the ability to see up-to-the-minute work in process information. The Multi-Bin Advanced Distribution module integrates with Work Order so bin distributions can be entered and updated along with each work order entry.
Bar Code
With Bar Code, collect data more quickly than ever before – warehouse and shipping/receiving staff can record bar coded items with a scanner and data is downloaded to Sage MAS 90 or Sage MAS 200. Multi-Bin Advanced Distribution modifies the Bar Code module by expanding the import files to include bin locations.
via: Multi-Bin for Sage ERP MAS 90 and MAS 200
Charlie Don’t Surf. The IRS Doesn’t Email.
December 10, 2010
Have you (or someone you know) recently received an urgent email claiming to be from the IRS. Sometimes the email asks for personal information. In other cases it directs you to call an 800 number. In the most scary situations there’s an attachment known as the “Zeus Banking Trojan” that the scammers hope you’ll download.
Well don’t fall for it.
According to Connecticut CPA Thomas Scanlon – a widespread scam preys on the belief that if someone does not respond to an official looking email that there could be penalties.
Thomas’s recommendation – discard emails claiming to be from the IRS unopened.
Why the IRS does not send email and IRS Site FAQ
MAS90 or MAS200 issue solved: Tiny or small fonts. Missing icon images.
December 10, 2010
Have you installed MAS90 or MAS200 to a new Windows 7 computer and now you’re noticing:
- The fonts seem too small – but only in MAS?
- Missing icon images
I just had a client call on this yesterday and Jim Woodhead of DSD Business Systems – and one of the members of my 90 Minds Consulting group- has of course leaped to the rescue with this observation:
In order to fix it, you need to change the DPI setting back to the default settings (96 Pixels Per Inch/100%). Here are detailed instructions for Window 7/Vista followed by Win XP.
Full details:
Are you missing the images/icons on the MAS90 or MAS200 Taskbar Launcher?
Avmor LTD Implements Sage ERP X3 On-Time, Cuts Inventory Count Time By 28 Days,
December 8, 2010
Canadian based Avmor LTD, a global manufacturer and distributor of industrial cleaning products has selected and implemented a new Sage ERP X3 accounting system for tracking it’s worldwide operations.
Sage ERP X3 is the next step up accounting and ERP system for companies with more extensive technology needs (typically multiple countries, currencies, web based transactional needs). We covered the (re)launch of Sage ERP X3 v6 in Paris France noting that:
Sage ERP X3 was acquired by Sage in 2005. Prior to branding as Sage ERP X3 it was known as Adonix. They claim 2,700+ users — probably mostly overseas (As I’m in Glastonbury CT that would be non – USA customers – though I believe there are a several in the USA) and 150 partners. The US launch of V6 is scheduled for Q2 2010.
ERP X3 has been actively building a channel in the US from amongst larger Sage partners. The product is positioned to ensure that both new companies and those companies outgrowing any of the Sage products have a place to migrate.
Press release from Sage follows:
Dec 06, 2010 09:05 ET
Avmor Ltd. Selects Sage ERP X3 for Its Operations Management
IRVINE, CA–(Marketwire – December 6, 2010) – Sage North America announced today that Avmor Ltd., a global manufacturer and distributor of quality industry cleaning products, has selected and implemented Sage ERP X3 to manage its complex operations. As part of the Sage ERP portfolio, Sage ERP X3 is a full-service enterprise management software system for mid-market businesses aimed at meeting the most elaborate business processes, while remaining cost-effective, quick to implement and simple to use.
For more than 60 years, family-owned Avmor Ltd. has conducted business in Canada, the U.S., Europe, Asia and the Middle East. The company’s manufacturing facilities are housed in a 155,000 square-foot, ISO 9001-2008 and ISO 14001:2004 certified plant that includes liquid and powder blending installations, a reactor for forming acrylic polymer emulsions, complete packaging facilities and on-site printing capabilities. Sophisticated tools are required to manage the company’s complex operations.
Edith Lauzon, director of finance and operations for Avmor, states that Avmor had previously relied on a legacy software system that was “heavily customized and lacked MRP capabilities, making it expensive to maintain and difficult for reporting.”
The company launched a comprehensive search for a fully integrated advanced manufacturing and distribution enterprise software solution and decided upon Sage. Sage also referred a local Sage Authorized Partner who collaborated with Avmor’s internal team to implement Sage ERP X3. “Our system went live as scheduled — to the day,” notes Lauzon. “Plus they saved us time by converting our bills-of-material, with our formulas, into the new system.”
Since the implementation, access to information across departments has dramatically improved, as has inventory management. “We can place key metrics right on our desktop to monitor them in real time,” says Lauzon. “Our ability to make informed business decisions is now enhanced, because we can deliver up-to-date information to our staff throughout the day. Sage ERP X3 has also improved our production planning capabilities. We’re now notified when we run low on the raw materials necessary to meet our real and projected demands.”
Prior to deploying Sage ERP X3, Avmor’s annual inventory costing activity took an entire month, but with Sage ERP X3′s efficiency and accuracy, the process now takes only two days. Additionally, lot tracking, a necessity when it comes to monitoring expiration dates of Avmor’s products, is easy with Sage ERP X3 because it automatically generates the coded lot number sequence for each item as each work order is completed. Lauzon says that this helps reduce waste and improves profitability.
Working with its business partner, the company plans to implement the software’s radio frequency (RF) data collection functionality. Item movement will then be efficiently tracked, from purchasing or production to final shipment, using hand-held devices and barcodes.
The web-based architecture of Sage ERP X3 allows Avmor’s sales staff to access the software anytime, anywhere. “We also plan to offer a similar benefit to our customers, which will help us to deliver a better experience for our customers,” explains Lauzon. “They will be able to log in to place orders, perform account inquiries and check stock of items.”
“We are already enjoying the benefits, efficiency and power the software provides — and we expect the benefits and resulting cost savings to continue to grow,” concludes Lauzon.
The extensive heritage and ecosystem of Sage ERP enables Sage to offer cost-effective, end-to-end solutions that are simple to use and span the diverse needs of midsize businesses across virtually every industry. As one of the largest selections of scalable, integrated ERP software solutions available, the Sage ERP portfolio includes Sage ERP Accpac, Sage ERP MAS, and Sage ERP X3. Sage ERP is designed to work the way each business needs it to, providing the necessary tools to help businesses select, plan, and implement their ideal mix of solutions. Together with over 5000 channel partners, Sage is committed to delivering an extraordinary experience to its more than 3.2 million customers in North America.
About Avmor Ltd.
Avmor is Canada’s leading manufacturer of professional cleaning chemicals aimed at the janitorial, sanitary and food service markets. Founded in 1948 by Avrum Morrow and Henry Chinks, Avmor employs over 100 industry professionals. For more information, please visit www.avmor.com.
About Sage North America
Sage North America is part of The Sage Group plc, a leading global supplier of business management software and services. Sage North America employs 4,000 people and supports 3.2 million small and midsize business customers. The Sage Group plc, formed in 1981, was floated on the London Stock Exchange in 1989 and now employs 13,400 people and supports 6.3 million customers worldwide. For more information, please visit the website at www.sagenorthamerica.com.
Free SpeedTax Sales Tax Annual Filing Through December 19, 2010
December 7, 2010
If you hate filing sales tax returns as much as most people – check this offering from SpeedTax. They’re an outsourced sales tax processing service that integrates to MAS90 and MAS200 accounting software to provide accurate sales tax calculations.
If you think the federal government isn’t looking to recoup every penny of tax owed them to make up for budget shortfalls — then just keep preparing your sales tax manually.
If however you think increased tax compliance is part of the “new normal” you might leave sales tax computation and return preparation to the professionals.
Through December 19, 2010 Speed Tax has this special offer:
SpeedTax Will Prepare Your Annual Tax Filing at NO COST!
Sign up for SpeedTax Plus Returns and Remittance Service by 12/19/10 and We’ll Prepare Your Annual Filing at NO COST!
More businesses than ever before are choosing to outsource their sales and use tax returns and remittance burden to SpeedTax, because our service is easy to use, affordable, and technologically advanced, keeping your business up-to-date on nearly 17,000 jurisdictions nationwide, and allowing you to offload the most tedious, time-consuming, resource-intensive sales tax-related tasks to us. Now is the time to outsource your rapidly expanding sales tax burden and risk to SpeedTax.
For more info:
SpeedTax Sales Tax Preparation
Sue Swenson Leaving Sage in 2011
December 1, 2010
Sage have just announced that North American CEO Sue Swenson will leave the company (retire) in 2011 (exact date unspecified) to be replaced by Sage France’s Pascal Houillon.
If I were to bet I’d say that Sue’s last day will be on or about June 18, 2011. This just so happens to conveniently coincide with the day when Sue Swenson’s 260,815 stock options vest with Sage UK according to this company announcement of June 17, 2008.
Sue Swenson joined Sage in 2008 after a surprise 2007 management restructuring that saw a number of Sage executives ousted. In her almost three years at Sage she appeared to be largely batting cleanup and did not take a central visible role in communicating to Sage’s channel or in meeting with the VAR community. Other Sage VARS described Swenson as a slightly reclusive CEO who appeared focussed on the job at hand rather than mingling with the Sage channel.
As near as we could tell Swenson was brought in to create an organizational structure where the various business units could exist on their own if needed. Other than an annual appearance at the Sage Insights conference (now Summit) few consultants or VARS reported much interaction with Swenson. She was rarely spoken about by other Sage employees. Her lack of integration with Sage’s channel partners appeared unusual given that Sage repeatedly states their commitment to operating through the use of business partners.
During Sage events, most notably at 2009 Presidents Circle, Swenson did not play any role and was barely mentioned from the podium save for when employees were questioned about her absence.
Her departure announcement follows that of Jodi Uecker-Rust who left in October 2010 after spending about a year at Sage running their biggest North American division. Prior to Sage Jodi Uecker-Rust ran the Great Plains software company as a defacto #2 to company founder Doug Burgum and was also a key employee at Microsoft who architected much fo the Microsoft acquisition of Navision. While a replacement has been named for Sue there’s not yet any indication of who will replace Jodi Uecker-Rust.
Update 12/3/2010: Seth Fineberg at WebCPA reports that Pascal Houillon will assume leadership of Sage Business Solutions in January 2011.
As for the rest of Sage’s earnings related news – North America shrank 4% in total revenues (the most of any division) yet held the line at 15% EBITA. Nearly all of Sage hit the 15% mark.
I’m still reading the earnings release report now – you can review here:
http://www.investors.sage.com/news/press_releases/?id=79768
Relevant North America Narrative:
North America
Total revenues in North America contracted 4%* to £549.9m (2009: £575.8m*). Organic revenues contracted 3%* (2009: 8%* contraction) with an organic contraction of 2%* in the second half of the year. Organic subscription revenues declined 2%* (2009: 2%* contraction), while organic software and software-related services revenues fell 9%* (2009: 23%* contraction). In the second half of the year, organic software and software-related services revenues contracted by 4%*, against a contraction of 13%* for the first half of the year.
The business environment for SMEs in North America remains challenging, although we did see some improvement in confidence over the year. Within our North American business we have seen progress across a range of initiatives such as premium support and renewals, cross-sell of payments into our ERP base, the launch of several connected solutions, continued increase in our customer satisfaction and brand awareness scores, and the reinvigoration of our channel partners.
Sage Business Solutions, our largest US division, declined organically by 3%* in the year, and by 1%* in the second half of the year. However, we did see good growth in the second half of the year in certain key products such as Simply, ACCPAC and Sage ERP X3. Our mid-market ERP products are well positioned in the market, with a number of compelling releases planned for 2011. Whilst the US entry-level market remains cautious, we have had success in building our position in the Accountants channel, and Peachtree Business Care premium support contracts now account for almost 50% of Peachtree subscription revenue. Our CRM and construction vertical businesses continued to experience relatively weaker demand for new software, whilst our not for profit business grew strongly. We have launched a number of connected services targeting these markets, for example e-marketing (linked to our CRM solutions) and e-philanthropy for non-profit organisations, and these are showing early positive signs.
Sage Payment Solutions Division saw growth in the number of merchants and spend volumes, but a continued competitive pricing environment. Revenues were therefore flat* in the year. We have diversified our revenue mix by targeting mid-market businesses, which have a longer average customer life than small businesses. With a flexible platform for integration into other Sage products, cross-sell revenues into the Sage base increased by over 70%* to £7.8m, and this remains a substantial future opportunity.
Sage Healthcare Division has continued to see growth in the Intergy product, and a contraction of the Medical Manager product giving an overall contraction of 5%* on an organic basis. We have made significant progress on our customer service, and we continue to see good customer wins for Intergy, although the impact of the American Recovery and Reinvestment Act (“ARRA”) funding is not expected to have an effect until April 2011 onward. To benefit from ARRA, users have to demonstrate meaningful use of Healthcare IT, so we were pleased that in October 2010 Intergy was certified for meeting the requirements for meaningful use. We have launched a new version of Medical Manager in the year which has been very well received by our customers. Our focus remains on serving our Medical Manager customers better, building our brand in the market and positioning Intergy to benefit from ARRA. Sage Healthcare Division’s EBITA† margin showed continued improvement to 20% (2009: 17%*).
The EBITA† margin was 22% (2009: 18%*). The prior year margin excluding restructuring charges was 20%*.
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