TechnologyOne announces tenth year of record revenues and profits
TechnologyOne (ASX:TNE) today announced its results for the full year ending 30 September 2013, reporting strong growth with Net Profit Before Tax up 16 per cent to $35.1 million on the prior full year period.
These results are at the higher end of market guidance of profit growth of between 10 and 15 per cent provided at the company’s Annual General Meeting on 13 February, and mark TechnologyOne’s tenth consecutive year of record revenues and licence fees. TechnologyOne’s strong customer retention and satisfaction rates also saw recurring Annual Licence Fees grow by 14 per cent.
Executive Chairman Adrian Di Marco said: “Amid the many reports of failed, multi-million dollar ERP implementations, TechnologyOne continues to successfully deliver its projects and achieve strong growth in our seven key vertical markets in Australia and New Zealand.”
“Some of the key wins this year included replacing Oracle at 21 Western Australian Government departments and agencies with our OneGovernment solution; replacing Oracle JD Edwards at Toowoomba Council with OneCouncil; and a combined TechnologyOne Cloud and OneCommunity sale to Queensland Police Citizens Youth Welfare Association (QPCYWA),” said Mr Di Marco.
“These wins clearly reflect the market’s need for solutions which dramatically reduce the time, cost and risks associated with large scale enterprise-wide systems implementations. We continue to see more organisations rejecting the failing business model of resellers and integration partners, typical of our multinational competitors, and buying into our Power of One and preconfigured solutions philosophy. Because we take complete responsibility for all aspects of our enterprise solution, we are 100 per cent accountable for the success of our customers’ implementations.”
Research & Development also continued to be a significant investment for TechnologyOne at $35.6 million for the full year, up 6 per cent, and continues to be below the target of 8 per cent per annum set in 2011.
“With the release of our next generation of the TechnologyOne Enterprise Suite in 2014, Ci², momentum in new licence fees will increase in future years,” said Mr Di Marco.
“A key focus of Ci² is to incorporate smart mobile devices including iPad, iPhone and Android devices natively into our product. Our intention is that all of our enterprise software will be able to operate on all smart mobile devices. This will open up a new world of possibilities for our customers, allowing them to abandon the traditional PC/laptop model of computing and access their data from anywhere in the world and at any time.”
Another focus has been the TechnologyOne Cloud, which is delivering the TechnologyOne Enterprise Suite through the cloud to the company’s customers. TechnologyOne Cloud has seen the company take complete responsibility to provide a simple, cost effective and elastic model of computing. The TechnologyOne Cloud will become a new major platform for growth, with strong demand building up over the coming years.
“Our R&D program continues to be at the leading edge of our industry, as we embrace new technologies, new concepts and new paradigms, such as the cloud and smart mobile devices. Our strategy is to embrace new innovations and consumer concepts to deliver powerful enterprise software that is incredibly simple to use. The level of innovation and creativity is greater than at any time in our company’s 26-year history,” said Mr Di Marco.