TechnologyOne exceeds market expectations with half year license fees up 18% and provides guidance of full year profit growth of 10 to 15%
Australian enterprise software company TechnologyOne (ASX: TNE) is expanding its operations rapidly in the South Pacific, doubling its customer base and attracting more than $1 million in new sales since establishing a regional office in Papua New Guinea (PNG) 12 months ago.
TechnologyOne now has a fast-growing customer base in five South Pacific nations - PNG, Solomon Islands, Nauru, Vanuatu and Samoa - with annual revenue including license, support and maintenance fees of $2.9 million.
Most recently, the company signed a contract with the Teachers Savings and Loans Society in PNG to provide its OneBanking solution and the Government of Samoa became the largest implementation site for its Human Resources & Payroll solution.
TechnologyOne Chief Executive Adrian Di Marco said the South Pacific region had traditionally relied on third-party providers, mainly resellers, to implement and maintain software on an as-needed basis.
"This presents a problem for businesses as resellers come in for a limited period of time, do what they need to do and then leave - they are typically aligned to specific needs rather than a long-term vision," Mr Di Marco said.
"To create a stronger presence in the region we established an office in PNG 12 months ago and appointed a dedicated Regional Manager and team to work on the ground full time, as opposed to flying in and out.
"We are the only vendor to have done this in PNG and a large on-ground team has put us in a good position to take advantage of the opportunities the region presents.
Mr Di Marco said the South Pacific region was increasingly recognising the need for better information management systems and while funding remained an issue, new economic opportunities and cloud computing compelled companies to improve business practices and use modern technology.
"Our unique model of developing, implementing and supporting our own fully-integrated business software presents companies in the South Pacific with a long-term, reliable and cost-effective technology solution."
Other recent deals in PNG include the implementation of a Lands Administration System for the Department of Lands and Physical Planning, a records management system for the National Research Institute of PNG and Posman Kua Aisi, and the sales of Budgeting and Forecasting and Publisher software to PNG Ports.
Other customers include the Forum Fisheries Agency in the Solomon Islands, the National Bank of Vanuatu and the Republic of Nauru. TechnologyOne also has more than 100 customers in New Zealand and 13 in Malaysia.