Brisbane-based tech group Technology One (TNE) has lifted interim dividend by 10% after a 17% improvement in first half earnings, but the shares closed all but steady on the day.
The half billion plus (market cap) company reported net earnings of $10.9 million, compared with $9.3 million in the first half of the 2011-12 financial year.
The solid profit rise came on a smaller 3% rise in revenues to $79.7 million in the half year, the company reported yesterday.
Interim dividend was set at 1.77c a share, up from the 1.61c a share paid previously. Technology One shares ended up a cent at $1.65.
TNE YTD – Solid Performance
Directors said in the statement issued with the earnings announcement that the company was on track to report a profit rise of "10 to 15 per cent growth for the full year".
Annual Licence Fees once again grew strongly by 18 per cent, directors said.
TechnologyOne Executive Chairman Adrian Di Marco said in the statement that there were significant growth opportunities ahead. He also attributed the company’s success to the failing business models of its multinational competitors Oracle, SAP and Microsoft which rely on implementation partners to implement their software.
"We are seeing more and more organisations switching to TechnologyOne after abandoning our competitors’ business models, which are outdated, obsolete and lack accountability," Mr Di Marco said.
"TechnologyOne develops, sells, implements and maintains its own software, and this unique business model allows us to take complete responsibility for the success of each and every one of our customers’ implementations.
"When a customer buys TechnologyOne enterprise software, we sign the contract, we are accountable and legally responsible to not only provide the software, but also the outcome.
"Where our competitors charge $3 services to $1 licence fees, TechnologyOne’s approach means our services fees are typically one to one with licence fees, or less.
"A logical extension to our unique business model has been our preconfigured solutions, which leave our R&D lab with ‘proven practice’, already configured and significantly reducing the time, effort, cost and risks associated with traditional enterprise implementations.
"With our new preconfigured solutions, we have even further reduced implementation costs to be $0.50 of services to $1 of licence fees."
TNE 2013 Half Year Roadshow Presentation
