Published on the 25/11/2015 | Written by Beverley Head
Brisbane-based software and services business Technology One has racked up a dozen years of record revenues and licence fees with profits up 16 percent…
Demand for cloud services has soared during the year to the end of September – up more than 200 percent – though off a low base as Technology One was relatively late to the cloud.
In a presentation to the ASX the company noted that cloud revenues last year reached $4.1 million compared to $1.4 million the year before. However it has yet to turn the corner profit-wise with the cloud, recording a $2.5 million loss for its cloud business this financial year.
Overall revenues during the year rose 12 percent to $218.7 million while net profit increased 16 percent to $35.7 million.
The potential for future cloud business is significant however. One of its most recent cloud wins was the $5.8 million deal to provide software as a service to the Federal Treasury, replacing a previous SAP solution.
In all, the company signed up 49 organisations for its cloud services during the year, with executive chairman Adrian Di Marco stressing that Technology One’s cloud solutions were true cloud, rather than gussied up hosting services which he described as “dirty cloud”.
The Treasury deal is not the first time Technology One has knocked one of the big boys off their perch; in 2013 it ousted Oracle from 28 Western Australia Government agencies.
According to the company in 18 of the new corporate customers signed up this year for Technology One solutions are replacing systems from Oracle, SAP, Microsoft and Infor.
Technology One’s systems also underpin the operations of the entire Tasmanian Government, and it has been named as a preferred supplier for both the UK and Australian Government’s cloud services panels.
R&D continued to be a significant investment for Technology One at $41 million for the full year, representing 19 percent of revenue. However Di Marco continues to be a vocal opponent of the Federal Government’s tax relief for R&D (currently under review) which he does not consider money well spent.
