TECHNOLOGYONE CLOUD GROWS 100 PER CENT

TECHNOLOGYONE CLOUD GROWS 100 PER CENT

BRISBANE enterprise software company TechnologyOne (ASX: TNE) has seen its profit drop but still expects growth of 10 per cent-plus for the full year.

Revenue was up by 12 per cent to $101 million for this half year, while net profit before tax was down 17 per cent to $9.4 million.

TechnologyOne chairman and founder, Adrian Di Marco (pictured), says the company is still forecasting profit growth of 10 to 15 per cent for the full year.

TechnologyOne is the preferred supplier for a 'number of very large contracts' which will close in the second half.

"Additionally, we expect total expenses to be reduced in the full year to 11 per cent, substantially below the 16 per cent increase at the half year," says Di Marco.

Cloud services fees were up by more than 100 per cent on the previous year and 21 new customers signed up for TechnologyOne's cloud service.

Di Marco says the company is now focused on migrating all of its cloud customers onto its cloud 5.0 architecture.

"We are now part of an elite group of companies globally delivering true enterprise software as a service, making our software the premier enterprise cloud offering in Australia and New Zealand," he says.

"We are also the only enterprise provider offering a fully configurable solution, with a mass production line of servers running our software for our customers."

Research and development is a big ticket item for TechnologyOne, with investment in this area increasing 13 per cent to $21.8 million for the half year.

Di Marco says this is 'absolutely critical' for the company.

TechnologyOne increased its half year dividend to 2.36c per share fully franked, up 10 per cent on the prior year.

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

A year after the PwC scandal, the furore is gone – as well as the appetite for structural change

It was a scandal that rocked the shaky foundations of Australia&rsq...