Software solutions firm Hansen Technologies has joined the flank of IT companies pairing down their non-profitable arms, despite exceeding its 2000 prospectus by 56 per cent.
The company posted $6.2 million earnings for the six months to December 2000, which brings its total revenue for the period to $28.3 million after tax.
Hansen managing director Andrew Hansen attributes the strong growth to the group's core billing systems software and services business which accounted for 86 per cent of sales for the period.
Hansen has dumped its Matrix IT personnel recruitment services following a downturn in this sector. Other poor performers -- centre productivity software (ResourcePro), rostering software (Roster0n) and infrastructure and asset management software (AssetLife) -- will continue to trade but will be scaled back.
However, the company has strong hopes for the RosterOn product and remains committed to growing its penetration. Hansen's venture into telecommunications proved the sweet spot for the year, while sales to energy and water accounts were disappointing. The company successfully implemented its outsourced billing service HubFM in British Telecom, and is hotly pursuing other businesses in this sector.
"The completion of our Hub billing system provides the platform for the company's continued growth into overseas markets. While there are some excellent opportunities for us domestically, the global markets for billing systems remain the most attractive and we are developing a strategy to sell more aggressively offshore. We believe this approach will underpin the company's growth over the medium to longer term," says Hansen.