TechnologyOne boosts revenue, profit and R&D

Stephen Withers
Monday, 23 May 2011 15:39

IT Industry - Listed Tech

Australian listed enterprise software developer TechnologyOne has turned in a solid result for the half-year ending 31 March 2011.

TechnologyOne has reported a half-yearly pre-tax profit of $9.1 million, a 33% improvement on the previous period even though revenue increased by 21% to $71.6 million from improvements in income from initial and ongoing licence fees, consulting services and project services.

"We are starting to see the return on investment into our preconfigured 'One' solutions, with our customers enjoying the industry-specific software solutions we have developed following many years in our vertical markets," said executive chairman Adrian Di Marco.

"Customers such as Newcastle Airport, Hurstville City Council, St George Community Housing and The Disability Trust have signed up for our OneAirports, OneCouncil, OneHousing and OneCommunity solutions respectively."

TechnologyOne's R&D expenditure increased 17% to $14.9 million. "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," said Mr Di Marco.

The company's current strategy is to use its new offshore development centre to work on the existing products, freeing Australian staff to work on the forthcoming C2 cloud computing suite.

"While C2 is our future, we remain committed to supporting our 800-plus customers currently using our existing Ci product suite and will continue to do so for many years to come," said Mr Di Marco. "We will support our Ci  suite for the long term - the next 5-10 years - with our customers continuing to enjoy new functions, features and an incredibly stable platform."