New customer wins and sector-specific software development projects have boosted TechnologyOne’s (ASX:TNE) full year results for the year ended 30 September.
The company reported a net profit before tax of $23.3 million, up 15 per cent year on year, while revenue was up 11 per cent year on year to $135.8 million. Annual licence fees were up 10 per cent, increasing to $26.8 million.
It recently announced a three-fold increase in revenuenew.
Executive chairman, Adrian Di Marco, said the results were particularly impressive considering the company had also increased investment in its products, services, offices and people, and spent $27.2 million on research and development (R&D).
During the year, TechnologyOne moved into a headquarters in Brisbane which incorporates a R&D centre housing more than 350 developers.
It also announced a number of customer wins during the year, including Multiple Sclerosis, Victorian Skills Commission, Newcastle Airport, High Court of Australia, Unity Water, Epworth HealthCare, and St George Community Housing.
Overseas contracts were secured as well, including the New Zealand Department of Labour and Carnegie College in Scotland.
At the beginning of 2010, TechnologyOne announced a restructure to its UK business following a loss of $1.5 million in 2009.
“Key to TechnologyOne’s success this year has been the introduction of preconfigured, sector-specific solutions, which allow customers to purchase out of the box enterprise software designed to be an 80 per cent fit for their industry, and finetune it to meet their organisation’s particular needs,” said Di Marco.
“This has reduced the time and the risk typically associated with a large, enterprise-wide implementations, and enhanced the value our solutions provide to our customers,” he said.
During November 2010, the company announced plans to restructure its business to develop the TechnologyOne Cloud Computing Suite (C2).
According to Di Marco, its C2 strategy will offer a markedly different approach from other vendors which are building cloud strategies around the existing architecture of their products.
“This is in contrast to TechnologyOne's commitment to re-engineer its software and business from the 'ground up' around the new cloud paradigm,” he said.
Di Marco added that the pipeline of opportunities for the coming financial year remains positive.
“TechnologyOne expects to see further growth in revenue in the 2011 financial year, positioning the company well for continuing profit growth,” he said.
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