Ross Jenkins, COO of Xero, is retiring from the company by the end of the year. He will not be replaced. Jenkins started with the low-cost cloud accounting software company as CFO in 2011. His LinkedIn profile describes that as his "dream job." In late January, Jenkins became COO when the company named Doug Jeffries as CFO. Jeffries, who was based in the San Francisco area, left after eight weeks on the job and Jenkins became interim CFO. He will remain in the transition when Sankar Narayan takes over as CFO.
CEO Steven Kelly impressed resellers at last week's Sage Summit, scoring well for leadership, openness and vision. Whether the market gives him time to execute the plan produced a more divided opinion. But as usual, people with positive things to say were more willing to put their remarks on the record. "The message and communications to the partners is a very positive change from the old management team," says Steve Blythe, owner of Blytheco, a top reseller. Bob Kohlmeyer, director of the DWD Technology Group, had glowing comments. "I walked away from Sage Summit more energized than I have in years. They announced a recommitment to Sage partners and increased reinvestment in core Sage products including Sage 100," Kohlmeyer said. "I think Sage has the ship moving in the right direction." Wendy Gorrie of Baass Business Solutions also complimented Kelly on being available to VARs and praised Rich Spring, EVP and chief revenue officer. "He [Spring] is saying all the right things and showing signs of follow through with action," Gorrie said. Other attendees I contacted made remarks in the same tone.
Blackbaud saw net income drop to slightly more than $7 million for the second quarter ended June 30, down 24.1 percent from $9.3 million in last year's corresponding period. The company this week reported revenue of $157.3 million for the most recently ended quarter, up 12.1 percent from $139.4 million a year ago. Cutting into the bottom line were operating expenses of $68.4 million, which represent an increase of $16.5 million, an increase of 24.1 percent year-to-year. Subscription income continued its upward trend.
Sage is moving major financial software products to the cloud. The SaaS version of X3 was made available this week, coinciding with the Sage Summit Conference. It is scheduled to be introduced into the United Kingdom during the summer and globally this year and next. Sage 100c and 300c are scheduled to hit the market in October. The new X3 can be deployed both in the cloud and on local services "or in an environment hosted by Sage certified partners—all with identical functionality and universal web and mobile access to their business management resources," according to the official press release.