TECHNOLOGYONE ON A CLOUD AFTER FIRST HALF PROFIT

BRISBANE software company TechnologyOne (ASX:TNE) has recorded half year NPAT of $7.4 million – up 29 per cent on the last FY.

First half revenues were also up 21 per cent to $71.6 million.

In an announcement to the ASX, TechnologyOne chairman Adrian Di Marco (pictured) says the half year results were pleasing, given the challenging market conditions and investment the company had undertaken in a number of future growth areas.

“On the back of the company’s significant investments in areas such as the new, preconfigured software solutions group, the new mobile solutions group, the UK business and the initial research and development on our cloud computing enterprise suite, we continue to post impressive growth in profit and revenue,” he says.

“These significant investments will, in future years, deliver us significant new revenue streams and will allow us to continue to increase market-share over our multi-national competitors.

“We’re starting to see the return on investment into our preconfigured One Solutions, with our customers enjoying the industry-specific software solutions we’ve developed following many years in our vertical markets.”

Di Marco says the creation of a new mobile solutions group will enable the company to build a new mobility platform and a range of mobility solutions across its entire product range using iPhones, iPads and other mobile devices.

“In the future, the new generation Cloud Computing Suite, TechnologyOne C2, will also create a new platform for continuing growth,” he says.

The company’s Research and Development (R&D) expenses were also up for the half year, growing 17 per cent to $14.9 million, representing 20 per cent of revenue.

“Our sizeable investment in R&D makes us one of Australia’s largest software R&D organisations, with our R&D expenditure budget for this year, in excess of $30 million,” says Di Marco.

Di Marco says part of the company’s growth strategy, the company is trialing a new, offshore development centre over a six to twelve month period.

“The new offshore centre will allow us to continue ongoing development on our current Connected Intelligence suite of products, enabling our Australian R&D teams to focus their efforts on building our new C2 suite of products for the cloud,” he says.

The company has won the last five major local government contracts in Australia as part of the One Council initiative – a new best practice solution for local government.

TNE shares are up by 3.8 per cent today to $1.09.