ASX-listed Australian software developer Technology One reported a $4.49 million profit after tax for the half year ending 31 December, an 18 percent jump on last year.
Technology One executive chairman, Adrian Di Marco, said the key driver behind the profit jump was an 18 percent increase in new (initial) software license fees.
This was a direct result of the popularity of its Finance One CI (Connected Intelligence) software package for the mid-market.
Government and commercial customers saw the value of this package rather than “monolith” software solutions offered by its competitors, Di Marco said.
He said systems from the likes of SAP and Oracle/PeopleSoft that were 10 to 15 years old, are “monolith in their approach” and these vendors can’t be as “responsive” as Technology One. He said the company keeps driving the price-point down and can offer the same functionality at “substantially less” than its competitors.
Over the half year, the company signed 39 new customer contracts in the government, commercial and education markets and expects to have close to 100 new customers for the full year.
Revenue for the period was up 7 percent to $26.3 million with operating cash flow at $5.62 million. During the half year, $4.97 million or 19 percent of revenue was also invested in research and development.
A new version of Finance One would be released over the next few months and would be a major platform for all new Finance One sales in the future, the company said. A CRM product would also be released over the next few years, Di Marco said.
Technology One shares were trading at 67 cents per share on Monday afternoon.