Brisbane software provider TechnologyOne has announced its results for the year ending September 30, with revenue up 11 percent and licence fees up 8 percent thanks to a boost in Research & Development (R&D) initiatives.


Coming at a time when competitors are recording reduced figures, Executive Chairman Adrian Di Marco says the impressive result marks the sixth consecutive year of record revenue and licence fees for TechnologyOne.


“We are continuing to win major deals against our multinational competitors, including new contracts with the New Zealand Stock Exchange, Beyond Blue, Lifeline Australia, City of Melbourne, Arab Bank, Sunsuper, Bank Negara (Malaysia), the University of Tasmania, Seqwater, the Children’s Medical Research Institute, Scarborough Borough Council (UK) and the University of Hertfordshire (UK),” Di Marco says.


In line with previous guidance provided to the market, the company’s Profit After Tax was down 9 percent on the prior year.


According to Di Marco, the company’s Profit After Tax result was because of delayed contract wins, continued strong investment in R&D, and a significant increase in its cost base from the strong growth the company experienced in the previous year.


“In the prior year revenue increased 41 percent and expenses increased by 47 percent, as we continued our substantial R&D program,” he says.


“This year we successfully implemented a number of cost control initiatives and at the half year our expenses had only increased by 26 percent.”


Despite the challenging economic period TechnologyOne continued to persevere with R&D, with expenditure in this area topping $25 million (up 18 percent from last year).


“Without a doubt R&D has underpinned our long term success in the market, and to this end TechnologyOne has taken a long term strategic view that has seen all our R&D projects continue, with no staff reductions.“ Di Marco explains.


“This is in contrast to our competitors who have significantly reduced staff numbers, losing valuable IP and expertise, which is ultimately going to impact their ability to continue current R&D programs and develop new ones. I believe that this will significantly hamper their long term success,” he says.


The coming year is expected to see TechnologyOne focus on delivering pre-configured, best practice enterprise solutions.


TechnologyOne has established a Solutions Group to work with its customers and internal teams to develop pre-configured, ‘best practice’ products, and its sales and marketing team has also been restructured around these solutions.


“Since we launched our first pre-configured solution in September 2008, OneFMA, for Federal Government agencies, which we designed in response to feedback from customers needing to streamline their financial reporting, we have seen more than $3m worth of new business,” Di Marco says.


Established in Brisbane 22 years ago, TechnologyOne employs more than 700 staff across Australia, New Zealand, Malaysia and the United Kingdom.

Return...