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Tech One announces preliminary results, profit up 16%

  • 30 January, 2004 13:24

<p>The Board of Technology One today announced preliminary results for the half year ending December 31st 2003. The company’s results are still to be reviewed and finalised by the company’s auditors with the official results to be released on February 26th 2004.</p>
<p>Executive Chairman Mr Adrian Di Marco said Net Profit Before Tax is expected to rise by approximately 16% over the previous year to $5,500,000.</p>
<p>“These are positive results, given the company expensed $4,747,000 representing 19% of revenue into Research and Development (R&amp;D), to bring our new generation of products to the market and give us an even stronger product leadership position ahead of our competitors,” Mr Di Marco said.</p>
<p>“The first of these products, Finance One Connected Intelligence (CI), is nearing completion and is on track for release in June 2004,” he said.</p>
<p>“This expenditure positions Technology One as one of Australia’s leading R&amp;D companies, continuing the company’s ethos of following world best practice by fully expensing R&amp;D in the period it is incurred, creating a strong correlation between profit and cash flow.</p>
<p>“This investment into our new generation products positions the company well for its next stage of growth.</p>
<p>Mr Di Marco said the company was clearly on track to meet market expectations of profit growth of 10% for the full financial year, but it was too early to revise estimates for any higher than this figure.</p>
<p>Technology One’s preliminary trading results were strong in the major regions of Queensland, New South Wales, Victoria and New Zealand, but disappointing in a number of other regions.</p>
<p>Mr Di Marco said this indicates that we are not yet seeing strong signs of improvements in the software industry across all regions.</p>
<p>“This is consistent with our previous forecasts that the industry should return to a positive trading environment in 2005,” he said.</p>
<p>Technology One’s sales in the first half of the financial year included a strategic deal with the Institute of Chartered Accountants in Australia choosing to implement Technology One’s accounting and financial management software solution, Finance One, following a competitive tender process against a number of multinational competitors, including Microsoft and JD Edwards.</p>
<p>The company’s current products continued to be very successful in the market winning substantial new business from their large multi-national competitors, particularly in the general commercial and government markets.</p>
<p>Numerous deals were closed with high profile organisations in the general commercial and government markets, including the Australian National Training Authority, Australian Broadcasting Authority, Melbourne Water Corporation, Westralia Airports and the Department of The Senate</p>
<p>Technology One also continued to strengthen its position in the local government market, closing deals with eight local councils in Australia and New Zealand, including the City of Sydney, Adelaide City Council, Launceston City Council and Hastings District Council.</p>
<p>New Zealand’s operations experienced record sales with seven new clients coming on board in the first half, including Jacques Martin, Aviation Security Service and Hutt City Council. Malaysia recorded three sales, Align Distribution Sdn Bhd, KUB Telekomunikasi Sdn Bhd and WCT Construction Sdn Bhd.</p>
<p>The announcement of these preliminary results is part of Technology One’s continuous disclosure policy to keep the market fully informed.</p>
<p>About Technology One</p>
<p>Technology One is one of Australia ’s largest publicly listed software companies. Its focus is the design, development, implementation and support of powerful, enterprise wide software applications using Client Server, Internet and eBusiness technologies for the corporate and government sectors.</p>
<p>In particular, Technology One delivers totally integrated, powerful enterprise solutions developed to meet the specific requirements of vertical markets, including: Financial Management and Accounting (Finance One), Higher Education and Universities (Student One), Retail (Retail One), Wholesale and Distribution (Sales One), Human Resource Management (People One), Local Government (Proclaim One).</p>
<p>Technology One also provides large scale, fixed time, fixed price custom software development services through its Project Services Group to meet the exact requirements of a specific customer, using Internet, eBusiness and Client Server technologies. Technology One employs approximately 300 staff in Australia , New Zealand and Malaysia.</p>
<p>Contact Details</p>
<p>Adrian Di Marco, Executive Chairman, Technology One
Phone (07) 3377 7300</p>
<p>Stephanie Wilson, Public Relations Consultant, Technology One
Phone (07) 3377 7518, Mobile 0405 133 871</p>

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