Tech One profit to rise 16 percent

Australian software developer Technology One expects its net profit to rise by around 16 percent to $5.5 million for the half year ending December 31.

The company on Friday announced preliminary results for the period and claimed it was on track to meet market expectations of profit growth of 10 percent for the full financial year.

Preliminary trading results were strong in Queensland, NSW, Victoria and New Zealand, but were disappointing in a number of other regions, according to Tech One's executive chairman, Adrian Di Marco.

Di Marco said this indicated that the software industry was not yet seeing strong signs of improvement across all regions. “This is consistent with our previous forecasts that the industry should return to a positive trading environment in 2005,” he said in a statement.

During the period, the developer claimed it expensed $4.75 million or 19 percent of its total sales revenue into research and development in order to bring a new-generation of products to the market. “The first of these products, Finance One Connected Intelligence (CI) is nearing completion and is on track for release in June 2004,” he said.

Company sales in the first half of the financial year included a deal with the Institute of Chartered Accountants, which chose the company's Finance One software package. The company claimed it defeated the likes of Microsoft and JD Edwards to the contract.

The developer also closed deals with the Australian National Training Authority, the Australian Broadcasting Authority, Melbourne Water Corporation and the Department of the Senate during the first half.