Technology One has recorded 58 per cent profit growth for the financial year ending June 30, 2000, attributing the latest financial results to a consolidated business strategy of software and services provision.
The $8.8 million profit posted was the "direct result of being both a software and services company and providing total business system solutions to the mid-market," said Adrian Di Marco, managing director of Technology One.
Profit reached $8.8 million despite intensive research and development expenditure of $4.7 million, up 78 per cent from the previous financial year.
Technology One said it would continue an aggressive R&D program into its existing product suite for the financial, tertiary, retail, wholesale and human resources sectors, as well as invest $6.1 million on new vertical markets in the 2001 financial year.
Profit growth exceeded the company's $8.4 million prospectus forecast, also outstripping revenue growth. Net revenue increased by 46 per cent.
The results were particularly "gratifying" for the software developer and consultancy in light of IT product firms' "marked" business slowdown late last year - a trend which Technology One said was caused by large Australian corporates' delayed buying decisions from Y2K and GST.
This financial year's results did not include any acquisitions.
However, Technology One broached Indian marketing opportunities in the last year by partnering with Indian software house Kale Consultants.
Technology One improved its cash position by $9.6 million for the year ending June 30, 2000, with $14.3 million in the bank. Total assets are worth $22.3 million and net assets $14.3 million.