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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.
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