Australian enterprise software company, TechnologyOne has posted revenue of $90 million - up three per cent - in its half year results.
The company has also reported profit before tax of $11.4 for the half year ending March 31, which was down 10 per cent.
TechnologyOne executive chairman, Adrian Di Marco, said the company was well positioned for continuing strong profit growth of 10 per cent to 15 per cent over the 2015 full year based on the strength of the sales pipeline for the second half, "which will also see strong licence fee growth over the full year,” he said.
“We are now preferred supplier for a number of very large contracts, which are under contract negotiation,” he said.
The company continued to invest heavily in a number of key strategic areas including TechnologyOne Cloud."
He said TechnologyOne Cloud grew strongly in the first half, with Annual Contract Value up more than 100 per cent to $4.1 million.
"We are on target to have 80 customers by December 2015, with Annual Contract Value of more than $8 million, which will be up another 100 per cent,” he said.
“We also recently welcomed Wellington City Council – one of New Zealand’s largest councils, Glenorchy Council and AsureQuality as cloud customers.”
He said organisations were increasingly avoiding the dirty hosting approach as the Cloud market matured.
"Software that is ‘lifted and shifted’ into a hosting environment - and choosing vendors that can deliver a complete enterprise Software as a Service (SaaS) offering,” he said.
“The SaaS model serves our customers far more effectively, by simplifying their IT infrastructure, optimising the performance of their platform and enterprise systems, and delivering enormous economies of scale and a future proof solution in a way that hosting providers will never be able to do,” he said.
The company has also been named as a preferred supplier on the Australian Government’s Cloud Services Panel.
He said the next phase of the company's TechnologyOne Cloud would provide a massively scalable platform with significant economies of scale.
“We expect this strong momentum to continue in the years to come,” he said.
During the company’s first six months in the S&P/ASX200, the share price increased 26 per cent to $4.02, at the end of the period, and hit $1.2 billion market capitalisation.
TechnologyOne increased its dividend for the half year to 2.15 cents per share fully franked, up 10 per cent on the prior year.
This represents a payout ratio of 75 per cent.
The company has continuously paid a dividend since it listed in 1999.