PLAYING THE IP GAME REAPS REWARDS

Written on the 16 April 2012

PLAYING THE IP GAME REAPS REWARDS

ONE of the city’s top software engineers is on a mission.

Technology One CEO Adrian Di Marco (pictured) vows to change Australia’s undervaluing of research and development (R&D), intellectual property (IP) and services-based companies.

He finds overseas markets have a greater appreciation that unique software IP can generate big profits.

“There is huge demand for enterprise software to improve efficiencies and take advantage of mobile devices, the internet and Facebook,” he says.

“There is huge growth potential in the future but we keep battling to make people recognise us in Australia.”

The company has produced positive results, successfully luring more clients away from competitors Oracle, SAP and Microsoft.

“We are getting a lot of traction and recognition. A lot of people we serve have replaced their Oracle software with ours,” says Di Marco.

“It comes down to making sure you have the right products and deliver the right service around those products. We act responsibly to our customers and have not had too many concerns about IP protection in the enterprise software space.”

Technology One reported a net profit after tax of $20.3 million, up 14 per cent in the first-half of the 2012 financial year. Revenue increased 15 per cent to $156.7 million and doubled once in every four years for the past 25 years, according to Di Marco.

“Licence fees have grown 15 per cent in the long-term with fiscal 2011 being onaverage,” says Di Marco.

Technology One increased its R&D expenditure by 18 per cent to $31.8 million, representing one-fifth of overall FY11 revenue. Di Marco reveals that 15 per cent of R&D expenditure is dedicated to smart mobile technology.

“Apple has shipped 4 million macs, 8 million iPads and 16 million iPhones worldwide – totalling 28 million smart devices. People want to do more and more with these devices, so they are the next growth area,” he says.

“We think Fortitude Valley is a great location and has potential to be the heart of R&D for the whole Asia Pacific region. More broadly, Brisbane has great universities and lifestyle offerings.”

The company has no debt, but suffered a $1.5 million loss in the United Kingdom and $3.2 million loss from the New Solutions group.

“The ongoing European debt crisis has made it very difficult for the UK business whose clients are running tight ships and not investing in enterprise software,” says Di Marco.

“New Solutions will still take 4-5 years to become profitable. A lot of money has to be spent on understanding how to preconfigure software to meet out-of-the-box and vertical market needs.”

----------

TOP PUBLICLY LISTED COMPANY
32.
Technology One
(TNE)
CEO: Adrian Di Marco
Market Cap: $323m
Revenue ’11: $156.7m
Profit ’11: $20.3m
Staff: 900 (500 in Brisbane)
Established: 1987
Listed: 1999


Latest News

DREAMWORLD PARENT COMPANY DEMOTES CEO DEBORAH THOMAS

ARDENT LEISURE, the parent company of Gold Coast's Dreamworld theme park, has reshuffled its core leadership w...

MELBOURNE SHOPPING CENTRE SELLS FOR $48m AS CHINESE DEMAND RAMPS UP

A MELBOURNE shopping centre has been sold for $48 million, bringing the total spent by Chinese investors on Victor...

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter