Queensland Tomato further ripens investments

Queensland investment software provider Tomato Technologies has hiked its profit projections 15 percent to $6.9 million for the year to June 30, concurrent with its US expansion.

Tomato's directors have advised the ASX that the company expects net profits before tax to exceed $6.9 million in the financial year to 30 June. The previous projection was for $6 million net profits before tax.

Jamieson Pickering, chairman and MD of Tomato, said the company had totted up two consecutive quarters of 'record profits'.
'Trading in all segments of our business continues to be robust,' he said.

Pickering said that the company's revenue for the six months to December was up 35 percent on the same period in the 2002-03 financial year.

At the same time, Tomato has formed a wholly-owned subsidiary to take on the US market. 'We have road-tested the US and what we see looks good,' Pickering said.

He said that the company had considered entering into general licensing arrangements in the US but did not think that was the best way to go.
'The US is such a big market [that] we want to take it slow and steady and make sure we get it right,' Pickering said.

Tomato Technologies recently expanded into Canada under a general licensing agreement.

Russell West, chief financial controller at Tomato, told CRN earlier this year that the software provider was starting to do well in Australia and UK sales.

The company had been seeking to expand into other countries, including the US, he said then.

The $40 million company's flagship Star Trader personal investor software has been on the market for about two years.

Tomato Technologies -- which claims its core revenue since 2000 has increased some 300 percent to about $20 million a year -- has a total 100 staff in its two Brisbane and London, UK, offices.