TECHNOLOGYONE FORECASTS STRONGER SECOND HALF

TECHNOLOGYONE FORECASTS STRONGER SECOND HALF

TECHNOLOGYONE (ASX:TNE) has shifted its focus on strong full year results, after posting a 10 per cent decline in profit to $11.4 million in the first half.

The software company reported a three per cent lift in revenue to $90 million and maintained its earnings outlook of 10 to 15 per cent growth in FY15.

TechnologyOne executive chairman Adrian Di Marco says while the results can't be extrapolated to determine full year profit, the company remains optimistic.

"TechnologyOne is well positioned for continuing strong profit growth of 10 per cent to 15 per cent over the 2015 full year based on the strength of our sales pipeline for the second half, which will also see strong license fee growth over the full year," Di Marco says.

"We are now preferred supplier for a number of very large contracts, which are under contract negotiation."

The software as a service (Saas) provider invested heavily into a number of key strategic areas including TechnologyOne Cloud, with annual contract value up to $4.1 million.

"We are on target to have 80 customers by December 2015, with annual contract value of $8 million plus, which will be up another 100 per cent," Di Marco says.

"We also recently welcomed Wellington City Council, one of New Zealand's largest councils, Glenorchy Council and AsureQuality as cloud customers."

TechnologyOne was also named as preferred supplier on the Australian Government's Cloud Services Panel a significant step as consumers transition to a world of cloud says Di Marco.

"The next phase of our TechnologyOne Cloud will provide a massively scalable platform with significant economies of scale, delivering us and our customers an even stronger competitive advantage," he says.

"We expect this strong momentum to continue in the years to come."

TechnologyOne lifted its first half dividend to 2.15 cents per share fully franked.

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