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Reckon expects after tax profit of $2.5 million

Reckon expects after tax profit of $2.5 million

ASX-listed software vendor, Reckon Limited, has advised that it expects to achieve an after tax profit of $2.5 million for the six months to June 2003.

Reckon, which produces Quicken accounting software, has increased profit expectations from the $2.2 million previously announced.

The actual net profit of Reckon at the same time last year was $245,000 which excludes a $1.002 million one-off adjustment due to a change in accounting policy.

Reckon chief operating officer, Clive Rabie, told ARN the results were expected due to a substantial increase in sales.

“Sales of Quickbooks Pro have been very strong for Reckon this last year,” he said.

The sale of new products through retail in June 2003 was 40 per cent better than sales of new products to June 2002.

Rabie said Reckon was placing more focus on the larger end of the SME market, and claimed that larger companies were starting to use Reckon products.

“Our [Reckon] market share has increased significantly over the last year,” he claimed.

The revised estimate was primarily a result of better than expected revenues for the last two weeks of June 2003.

Reckon competitor, MYOB, has reported half-year earnings of more than $16 million before interest, taxes, depreciation and amortisation (EBITDA).

The result was up on earnings of $12.5 million at the same time last year to June 2002.

Chief operating officer at MYOB, Matthew Critchley, said the growth has been achieved notwithstanding unfavourable economic factors such as the impact of SARS and the strengthening of the Australian dollar.


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