TechnologyOne Annnounces Continuing Growth

TechnologyOne Annnounces Continuing Growth for First Half 2010

24 May 2010 - TechnologyOne (ASX:TNE) today announced its results for the half year ending 31 March 2010, reporting continued growth with Net Profit After Tax up 47% on the previous comparative period.

The company’s revenue for the first half was $59.2m (up 6%), with Net Profit Before Tax of $6.9m (up 38%) and Net Profit After Tax $5.7m (up 47%). Expenses excluding R&D were $39.6m (up 3%) with R&D expenses $12.7m (up 1% on the previous comparative period).

Executive Chairman, Adrian Di Marco, said the result was especially pleasing, given the challenging and uncertain economic environment.

“TechnologyOne has posted continuing growth in revenues and profits in a challenging and uncertain economic time. This is particularly encouraging because, in order to continue to grow our business, we are winning new customers from our competitors."

TechnologyOne acquired a range of new customers across its key vertical markets in New Zealand during the period, including the Department of Labour in the government sector.

TechnologyOne has won all major New Zealand government deals for financial management solutions since 2005– including Ministry of Justice, Ministry of Agriculture & Forestry, Ministry of Economic Development, and the Ministry for the Environment. The Australian listed company has also won all competitive health board tenders since 2005, with the Nelson, Hawkes Bay, Tairwahiti and the Lakes District Health Boards all using TechnologyOne software solutions.

The half year also saw TechnologyOne sign a lucrative deal with the Victorian Government in Australia to roll out its Student Management solution to 13 of the 16 TAFE institutions across the state.

TechnologyOne is already the dominant provider of software solutions to the higher education sector in New Zealand, with leading institutions such as the University of Otago and Massey University utilising the TechnologyOne Financials solution and a market share of 50% of all polytechnics.

According to Executive Chairman, Adrian Di Marco, the company has identified a very strong opportunity with its Student Management solution for the New Zealand higher education sector.

“We’re already the dominant provider of financial software to the polytechnics, and moving forward we have identified a very strong opportunity for our Student Management product in the higher education sector in New Zealand,” said Mr Di Marco.

“Our Student Management product is already used by a range of leading universities in Australia, most notably the University of Melbourne, and we’re repeatedly being chosen over the offerings of Oracle because of our functionality."

TechnologyOne moved into its new international R&D centre in Fortitude Valley, Brisbane, on 14 May 2010. The centre is the largest Australian R&D centre for software development and has been designed to enhance collaboration and stimulate innovation as the company commences development of its next generation of enterprise software.

At a projected cost of $120m, the project – code named ‘Next Gen’ – will embrace leading edge concepts and emerging state of the art technologies.

Next Gen will follow the success of TechnologyOne’s Connected Intelligence platform, released in 2005 and now used by more than 800 of Australia’s largest corporations, government departments, universities and utilities providers.

Mr Di Marco said the operating environment remains uncertain and challenging.

”The company is continuing to experience aggressive tactics from competitors, customers delaying decision making, and longer contract negotiation timeframes,” he said.

“Having said that, market conditions have not deteriorated any further in the last 12 months – they have now stabilised and we expect in the next 12 to 24 months to see conditions improve.

“Clearly our first half year result has been very strong and the company is positioned well for continuing growth this year."

ENDS

About TechnologyOne
TechnologyOne (ASX: TNE) is a leading enterprise software solutions provider. For more than 20 years we have been providing deeply integrated software solutions for business, government, financial services, health and community, education and the utilities sectors. Tens of thousands of people each day use our world class solutions which we develop, implement and support, and include, Financials, Human Resource & Payroll, Supply Chain, Business Intelligence, Enterprise Budgeting, Performance Planning, Property & Rating, Customer Relationship Management, Student Management, Works & Assets and Enterprise Content Management. Our organisation wide solution suite, integration solutions and custom designed solutions provide world-class services which are based on leading edge technology and are backed up by a substantial R&D program providing our customers with a long term, secure and valuable partnership. TechnologyOne employs more than 700 people and has offices in each State and Territory of Australia, as well as New Zealand, Malaysia and the United Kingdom.

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