Brisbane-based software developer Technology One has warned shareholders that for the first time in seven years the company is not expecting to meet its profit targets.
The ASX-listed developer of financial, HR and administrative software prides itself on its flawless financial record, announcing its seventh consecutive year of annual profit ($8.76 million) in September. Most of its competitors have failed to post profits at all.
One quarter later and Technology One has told shareholders that the sagging IT industry is finally going to take its toll on the company. It does not expect to meet its profit forecasts for 2003, and expects any profits to be up to 25 per cent lower than its 2002 result.
Technology One expects to return to periods of profit growth in 2004. CEO Adrian Di Marco said that he expects the IT industry to return to a "normal level of business" by 2005.