ASX listed software company TechnologyOne said that a war of words with Brisbane City Council hasn’t hurt ongoing local government sales.
The company today announced its results for the 12 months ending 30 September, reporting net profit before tax of $58 million, up 9 per cent year on year, on revenue of $273 million, up 10 per cent.
TechnologyOne said it had seen strong continuing sales in local government, with no impact from the conflict with BCC on its sales pipeline and ability to close.
Brisbane City Council earlier this year served the company with a claim for loss damages in excess of $50 million. The council in July terminated its IT systems replacement contract with TechnologyOne.
The dispute relates to a contract awarded to TechnologyOne in 2015 to replace 13 of the council’s core IT systems.
The council said it had terminated the contract “due to TechnologyOne’s persistent and ongoing contract breaches, significant and unacceptable delays in progressing the contract and a complete loss of faith in the company’s ability to deliver a replacement system for Council's IT systems”.
TechnologyOne has blamed the council for delays in the project, including BCC underestimating the scope of its business processes. The company’s executive chairperson, Adrian Di Marco, has described the council’s behaviour as “both disingenuous and unprofessional”.
TechnologyOne announced today that its cloud arm had achieved a “major milestone” during the year, delivering profit of $2.5 million, compared to a loss last year of $2.2 million.
The company added 112 cloud customers this year, bringing the total to more than 270.
Annual subscription revenue was up 17 per cent to $139 million.
“TechnologyOne continued to dominate in the local government sector, where we closed 10 new major deals totalling $40 million in contract revenue in the last quarter across Queensland, New South Wales, Victoria, South Australia and Western Australia,” TechnologyOne CEO Edward Chung said in a statement.
“TechnologyOne secured 240 new deals across Australia, New Zealand and the UK in FY17 in local government,” the CEO said.
“We have more than 300 council customers and are continuing to grow fast. We continue to deliver exceptional projects at breakneck speed with several recent SaaS go-lives being implemented in less than 12 weeks.”