(By Anthony Miller). US accounting software market leader, Intuit, downgraded FY09 guidance for a second time yesterday when it announced Q2 results (see here). At its Q1 results (Nov. ’08) Intuit was forecasting revenues to grow by 6%-10%, after reaffirming 9%-12% growth a couple of months earlier. Now they are expecting only 2%-6% revenue growth. Similarly, early forecasts for $724-744m FY09 operating income have been lowered to $682-735m, which will drag EPS down 6%. This will not bode well for Sage, which gets 39% of revenues and 29% of profits from North America. Intuit's downgrade also signifies how rapidly market conditions are deteriorating. Sage’s traditional US software business grew barely 1% in FY08 (see Recurring revenues keep Sage growing) and more recently, CEO Paul Walker signalled that ‘volatile’ trading conditions were dragging down business (see Currencies hit Sage net debt). Thank goodness for those recurring revenues!
Friday 20 February 2009
Intuit lowers guidance again
(By Anthony Miller). US accounting software market leader, Intuit, downgraded FY09 guidance for a second time yesterday when it announced Q2 results (see here). At its Q1 results (Nov. ’08) Intuit was forecasting revenues to grow by 6%-10%, after reaffirming 9%-12% growth a couple of months earlier. Now they are expecting only 2%-6% revenue growth. Similarly, early forecasts for $724-744m FY09 operating income have been lowered to $682-735m, which will drag EPS down 6%. This will not bode well for Sage, which gets 39% of revenues and 29% of profits from North America. Intuit's downgrade also signifies how rapidly market conditions are deteriorating. Sage’s traditional US software business grew barely 1% in FY08 (see Recurring revenues keep Sage growing) and more recently, CEO Paul Walker signalled that ‘volatile’ trading conditions were dragging down business (see Currencies hit Sage net debt). Thank goodness for those recurring revenues!
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