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Software industry turmoil creating opportunity for Technology One

  • 16 June, 2003 10:42

<p>MEDIA RELEASE</p>
<p>June 16, 2003 For Immediate Release</p>
<p>Tech One Positioned To Take Advantage Of Software Industry Takeover Mess</p>
<p>Technology One, one of Australia’s largest publicly listed software companies, has completed the internal restructure announced to shareholders last year on schedule, with benefits already beginning to flow to customers.</p>
<p>In a timely move the company’s new more decentralised structure will enable even higher levels of customer support, direct customer input into product development, faster decision-making and more accountability from the management team.</p>
<p>At a time when the software industry is undergoing a lot of change, including consolidation, the management of Technology One decided to take advantage of the current confusion and lack of confidence to finetune their already successful one stop shop business model and therefore provide a more secure alternative for current and potential clients.</p>
<p>“Consolidation of the smaller software companies has been happening for over two years and now the large companies are becoming involved in antagonistic and destructive takeover action,” said Mr Di Marco, CEO of Technology One.</p>
<p>“This will only damage their relationships with their current clients and reseller base, with a lot of uncertainty resulting about levels of support, software quality maintenance, market control and possible increases in licence fees,” he said.</p>
<p>According to Di Marco there are many examples of companies who have fallen into the trap of growth by acquisition, Computer Associates is one, where the acquired products have simply dropped off the radar after a few years.</p>
<p>“Large mergers in the IT industry are never good news for customers because to achieve the promised cost savings the companies need to rationalise the products, particularly if they are aimed at similar markets,” said Mr Di Marco.</p>
<p>“For example if they try to maintain two similar products they have to also maintain two R&amp;D and sales and marketing teams that are competing against each other in the same markets. It just doesn’t make good business sense.”</p>
<p>Technology One has a unique advantage that provides a high level of confidence for clients in the company’s future, and that is the company develops, markets and supports its own software. The highly profitable company doesn’t rely on other suppliers to provide a consistent level of service and quality to its customer base.</p>
<p>“We have been involved in the production and support of high quality software for over 15 years and we are determined to continue to contribute to the growth of the Australian software industry well into the future,” said Mr Di Marco.</p>
<p>“We can’t be taken over because the founders of the company still own over 50% and we won’t be bought out because we are still enjoying taking the fight to the big multinationals.”</p>
<p>“We can’t let these large companies, who are about to become larger, corner the business software market and provide less choice and potentially less innovation.”</p>
<p>About Technology One
Technology One is one of Australia’s largest publicly listed software companies. Its focus is the design, development, implementation and support of powerful, enterprise wide software applications using Client Server, Internet and eBusiness technologies for the corporate and government sectors.</p>
<p>In particular, Technology One delivers totally integrated, powerful enterprise solutions developed to meet the specific requirements of vertical markets, including:</p>
<p>· Financial Management and Accounting (Finance One)
· Higher Education and Universities (Student One)
· Retail (Retail One)
· Wholesale and Distribution (Sales One)
· Human Resource Management (People One)
· Local Government (Proclaim One)</p>
<p>Technology One also provides large scale, fixed time, fixed price custom software development services through its Project Services Group to meet the exact requirements of a specific customer, using Internet, eBusiness and Client Server technologies.</p>
<p>Technology One has achieved compound profit growth of approximately 45 percent per annum since 1992. Last financial year, the company recorded a net profit before tax of $12.84 million, an increase of 12 percent on the previous year, after expensing all R&amp;D costs of $8.14 million.</p>
<p>Technology One employs approximately 300 staff in Australia, New Zealand and Malaysia. For further information, visit the Technology One website www.TechnologyOneCorp.com.</p>
<p>Further information: Adrian Di Marco, CEO, Technology One Ph: (07) 3377 7300</p>

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