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TechnologyOne Announces Record Profit: Up 31%

  • 21 February, 2007 13:38

<p>BRISBANE, 21 February 2007 – Technology One Limited (ASX:TNE), the leading Australian provider of enterprise business software solutions, today announced a record profit before tax of $9.5 million for the half year ended 31 December 2006. This represents a 31% increase over the previous year.</p>
<p>Highlights for TechnologyOne’s half year results include:</p>
<p>· Profit After Tax (PAT) of $7.3 million, an increase of 43%.</p>
<p>·Initial Licence Fees of $10.7 million, an increase of 56%.</p>
<p>·Revenue of $39.3 million, an increase of 24%.</p>
<p>· Research and Development (R&amp;D) expenditure remained very strong (fully expensed) at $6.5 million, representing 17% of Revenue, an increase of $0.7 million.</p>
<p>TechnologyOne Executive Chairman Adrian Di Marco said: “This achievement is a continuation of our strong performance over the last few years and highlights the success of our strategic initiatives, which has seen us substantially broaden our product line, improve our R&amp;D, sales, marketing, and consulting practices. It has also seen the continuing rollout of our new Connected Intelligence series of market leading products."</p>
<p>“TechnologyOne’s new generation Connected Intelligence series has provided us with a strong market leadership position, and a superior alternative to the solutions offered by our competitors,” Mr Di Marco said.</p>
<p>Other key achievements during this period include:</p>
<p>· Further growth in the TechnologyOne Student Management solution, with a number of high profile contract wins, including LaTrobe and Melbourne Universities.</p>
<p>· TechnologyOne Financials solution continued to be a strong driver.</p>
<p>· The UK office has identified a number of opportunities and secured its first customer, Allco Finance Group.</p>
<p>Over the last six years TechnologyOne has undertaken an extensive and very intense R&amp;D program, which has seen the company expand its product range dramatically to become one of only a few true enterprise solutions providers in the world able to deliver Financials, Supply Chain, Works &amp; Assets, HR &amp; Payroll, Business Intelligence, Property &amp; Rating, and Student Administration solutions.</p>
<p>“R&amp;D will continue for the next few years, as we ‘round out’ our product range, but more importantly our focus will now move from R&amp;D towards building a large customer base for each of these products. We believe we have created a significant pipeline of new products, the commercial value of which now needs to be realised,” Mr Di Marco said.</p>
<p>“During the next six months the company will start the implementation of a strategy to begin realising the value of this pipeline of products going forward, which will contribute to our future growth. The new strategy will have a significant impact on the manner in which we sell and manage our ongoing relationship with our customers.</p>
<p>“TechnologyOne is introducing a Federated Product model, in which each product will have the focus, strategy, people, systems and culture to be a market leader, or what is generally referred to as ‘best in class’.</p>
<p>“Under our new Federated Product model each product will be lead by a General Manager who will drive an integrated R&amp;D, marketing, sales, implementation and support strategy to achieve market leadership. All our products will be deeply integrated out of the box, and will be based on our new Connected Intelligence series, and be backed up by common systems, processes and branding strategy,” he said.</p>
<p>Mr Di Marco continued: “Our initial focus will be on our Property &amp; Rating and HR &amp; Payroll products, to substantially increase their revenue and profit contribution. Our strategy will be to increase sales to new customers as well as cross selling our extended product range into our ever growing customer base. We have now appointed two new senior managers to support our Executive Team – the General Manager Property &amp; Rating and the General Manager HR &amp; Payroll. As part of this new initiative we will also be extending our Executive team, with the appointment in the near future of an Operating Officer for R&amp;D.</p>
<p>“Once this has been achieved we will then divert our attention to increasing the revenue contribution of the next groups of products in our pipeline: Works &amp; Assets, Business Intelligence, Supply Chain and Customer Relationship Management (CRM).”</p>
<p>Mr Di Marco reconfirmed previous profit growth guidance of between 15 and 20% increase for the full year.</p>
<p>ENDS</p>
<p>About TechnologyOne</p>
<p>TechnologyOne has been providing comprehensive and deeply integrated enterprise business software solutions for more than 20 years. The company’s unique value proposition, The Power of One, is that it develops, markets, sells, implements and supports its own world class, fully integrated software solutions including Financials, HR &amp; Payroll, Supply Chain, Business Intelligence, Budgeting, Performance Planning, Property &amp; Rating, Student Management and Works &amp; Assets. The company’s new generation Connected Intelligence (Ci) solution suite is based on leading edge, state of the art technology and backed up by a substantial research and development program to ensure it continues to provide its clients with a significant competitive advantage and long term security. For further information visit www.technologyonecorp.com.</p>
<p>For further information please contact:</p>
<p>Carly Perkins, Corporate Communications Manager Mob: 0423 567 491</p>
<p>Sally Robinson, Espresso Communications Mob: 0402 200 107</p>

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