TechnologyOne announces record revenue and profits

TechnologyOne (ASX:TNE) today announced its results for the full year ending 30 September 2011, reporting continued growth with Net Profit Before Tax up 15 per cent to $26.7m on the prior full year period.

The company's revenue increased 15 per cent to $156.7m and Net Profit After Tax grew 14 per cent to $20.3m - marking the eighth consecutive year of record revenues and licence fees for the Australian enterprise software company.

TechnologyOne also announced a final dividend and special dividend would be paid.

As a result of TechnologyOne's strong balance sheet, continuing growth and confidence in the future, the total dividend for the year increased to 6.12 cents per share, up 7 per cent on the previous year, which based on a share price of $1.01, represents a fully franked dividend yield of 6 per cent.

Executive Chairman Adrian Di Marco said the company had invested heavily in its new preconfigured solution business.

"We are already starting to see some major successes which is producing a significant revenue stream, including 28 new customers who have signed up for these preconfigured ‘OneSolutions'," he said.

"More than $11m worth of licencing and consulting fees has been secured as a result of the release of the new software solutions."

The solutions are designed as a proven practice template for each of our vertical markets such as local government, financial services and health.

Because they are a 90 per cent fit ‘out of the box' the new solutions are already helping customers, including several councils, a major new hospital and a credit union, reduce the risks and lengthy timeframes typically involved in technology implementations.

"Our ongoing investment in R&D means these new solutions are continually supported and updated, so they will still be relevant and up to date in five, 10 or even 20 years time," Mr Di Marco said.

"This is increasingly important to customers who are even more risk-averse in the current economic climate and want technology partners who are going to be accountable, available and around for the long term."

In this context, TechnologyOne also attributes its ongoing success to the fact that it is an enterprise software vendor that builds, markets, sells, implements and supports its own integrated software.

As it continues to win business over and replace systems from multinational competitors such as Microsoft and Oracle in the wake of some high profile project failures, TechnologyOne is also establishing itself as a major player in the assets-intensive industries.

"TechnologyOne Enterprise Asset Management is becoming a more important aspect of our product suite. We are now challenging and regularly winning business against established ‘best of breed' market players such as IBM Maximo and Infor Hansen in our core markets of local government, water and infrastructure," Mr Di Marco said.

Despite ongoing global economic uncertainty, TechnologyOne has also secured major new business in the last year including winning a majority of tenders issued in the local government sector and impressive wins in the health, utilities, ports and airports and financial services verticals.

Mr Di Marco said the company invested a record $31.8m in research and development (R&D) this year, representing 20 per cent of revenue - a significant sum which TechnologyOne is confident will pay off in future years.

"We are providing our customers with a simple and evolutionary path to the exciting new paradigm of Cloud Computing," Mr Di Marco said.

"Cloud is the future and TechnologyOne has committed substantial resources to ensure our customers can take advantage of the benefits the Cloud offers, while still using their existing systems.

"We are very excited to be unveiling our complete cloud offering at ‘Evolve', TechnologyOne's user conference, in February 2012."

Mr Di Marco also cited a range of new mobile solutions across its entire product range and a new offshore development centre as important areas of investment, which would maintain the company's leading position and competitive advantage in future years.

"TechnologyOne has built a suite of enterprise products that puts us in an elite group of software companies globally and we are continuing to use new technologies to gain an advantage over our competitors. We remain confident in our opportunities for 2012 and of continuing growth in the long term," he said.