Australian software vendor, Technology One, has given the market guidance that it expects net profit growth of about 16 per cent when it announces its full results for the six months to December 31, 2003.
The software company expects to report net profit before tax of about $5.5 million for the six month period, while still taking into account about $4.75 million in research and development costs.
This R&D investment, worth about 19 per cent of Tech One’s revenues, will aid the company’s plans to begin the roll-out of its next generation of products starting in June 2004.
Executive chairman, Adrian Di Marco, said the company was on track to meet expectations of 10 per cent profit growth for the full year, but it was too early to raise estimates any higher.
The fact that the company’s performance was impressive in Queensland, NSW, Victoria and NZ but disappointing elsewhere, suggested the industry had not quite turned the corner yet, he said.
During the six-month reporting period, Technology One won deals with the Australian National Training Authority, Australian Broadcasting Authority, Melbourne Water Corporation, Westralia Airports and the Department of The Senate. It also continued its success with local councils – signing up the City of Sydney, Adelaide City Council, Launceston City Council and Hastings District Council.