Record GST-bosted sales of Reckon's Quicken accounting software have pushed profits for the company well over projections with the company moving 105,000 units of SME accounting software in June alone.
The company has posted software revenue of $35 million - five times that of the corresponding period last year - ending the half-year with a profit of $37,000. In the six months to June the company sold more than 139,600 units of its QuickBooks software.
"Our forecast took into account the GST explosion, but we have been quite staggered by unit sales," company CEO Greg Wilkinson said.
According to channel research from analyst Inform, Quicken leapfrogged previous market leader MYOB in June to gain 51.5 per cent of the market. That trend continued in July, according to Inform with Quicken holding 55 per cent market share. Wilkinson attributed Quicken's success to a well time advertising campaign and the ease of use of the product.
While the market is set to slow down significantly in the next six months, Quicken is now aiming to consolidate its customer base with upgrades and services and mop up the remaining 25 per cent of the market which hasn't automated their businesses with its CashBook product.
It will also take its QuickPOS software, the intellectual rights of which the company bought last week for an undisclosed sum, to the US market.
Wilkinson said the company now has a customer base "nudging" 400,000 which it would use to drive traffic to its dot-com site. Not surprisingly, Quicken's call centre has been inundated in recent months. This has allowed a new revenues stream to be brought online as the company has begun charging for technical support and customer care.