Technology One has announced a revenue jump of 13 per cent to $24 million for the half year ending December 31, 2002.
Technology One CEO, Adrian Di Marco, attributed the strong results to the significant number of new business customers the company signed on over the half year period.
Di Marco said the company had drummed up new business across all sectors, including government, education, commercial and corporate.
He was touting the revenue growth as the strongest half-year results in the company’s history, but Technology One’s net profit after tax fell 18 per cent to $3.2 million.
This was due to the company’s increased investment in research and development (R&D) and the opening of regional offices both in Australia and overseas.
Di Marco said the company would start to see a return on its recent investments as the expected turnaround in software-related IT expenditure occurred.
He said organisations would soon start replacing their applications because of dissatisfaction with the support offered by their suppliers, and because their applications were almost obsolete.
"As such, Technology One has embraced this as an opportunity to take a competitive advantage over our competitors," Di Marco said.
"In a difficult market when our competitors are reducing R&D dramatically and downsizing their service network we are continuing to invest strongly in our future.
"We believe to capitalise on a future turnaround in IT expenditure we must have our applications and service network well established."
The company expects to see profit growth resume in 2004, when growth in expenditure is planned to come back in line with continuing revenue growth.