Australia’s largest publicly listed software company TechnologyOne has recorded its tenth consecutive year of record revenues and license fees.
The company recorded strong profit growth, with net profit up 16 per cent to 35.1 million, compared to the previous year.
The results are at the higher end of market guidance of profit growth of 10-15 per cent provided at the company’s annual general meeting on February 13.
The company saw its recurring annual licence fees grow by 14 per cent.
Executive chairman Adrian Di Marco said the company continued to deliver successful projects and achieved strong growth in its seven key markets in A/NZ amid the many reports of failed, multi-million dollar ERP implementations.
“Some of the key wins this year included replacing Oracle at 21 Western Australian Government departments and agencies with our OneGovernment solution; replacing Oracle JD Edwards at Toowoomba Council with OneCouncil; and a combined TechnologyOne Cloud and OneCommunity sale to Queensland Police Citizens Youth Welfare Association,” he said.
“These wins clearly reflect the market’s need for solutions which dramatically reduce the time, cost and risks associated with large scale enterprise-wide systems implementations.
Di Marco said he was continuing to see more organisations rejecting the failing business model of resellers and integration partners, typical of our multinational competitors, and buying into our Power of One and preconfigured solutions philosophy.
“Because we take complete responsibility for all aspects of our enterprise solution, we are 100 per cent accountable for the success of our customers’ implementations,” he said.
The company invested $35.6 million into research and development for the year, up six per cent.
This is still below the eight per cent target set in 2011.
Di Marco said the release of the TechnologyOne Enterprise Suite, Ci. in 2014 would bring momentum to new license fees, which he expects to increase in future years.
“A key focus of Ci. is to incorporate smart mobile devices including iPad, iPhone and Android devices natively into our product,” he said.
“Our intention is that all of our enterprise software will be able to operate on all smart mobile devices. This will open up a new world of possibilities for our customers, allowing them to abandon the traditional PC/laptop model of computing and access their data from anywhere in the world and at any time.”
Di Marco said Cloud was also a major focus for the company. He expects the TechnologyOne Cloud to become a major platform for growth in future years.
“Our R&D program continues to be at the leading edge of our industry, as we embrace new technologies, new concepts and new paradigms, such as the cloud and smart mobile devices,” he said.
“Our strategy is to embrace new innovations and consumer concepts to deliver powerful enterprise software that is incredibly simple to use. The level of innovation and creativity is greater than at any time in our company’s 26-year history,”