tne looking the goods!

Market appears to have liked Technology One's results from yesterday! Currently up 5%.

2002 Financial Results

Document date: Mon 02 Sep 2002 Published: Mon 02 Sep 2002 09:43:52
Document No: 148226 Document part: A
Market Flag: N
Classification: Periodic Reports - Other
TECHNOLOGY ONE LIMITED 2002-09-02 ASX-SIGNAL-G

HOMEX - Brisbane

+++++++++++++++++++++++++
Leading Australian software developer, Technology One Limited, today
announced the Company's financial results for the period ended 30 th
June 2002.

HIGHLIGHTS OF THE ANNOUNCEMENT ARE AS FOLLOWS:

# EBITDA* of $13.4 million, up 20 percent

# Revenue of $ 46.37 million, up 20 percent

# R&D Expenditure (fully expensed) of $8.14 million, representing 17%
of Revenue

# Net Profit After Tax of $8.76 million, up 13 percent

# Earnings Per Share of 2.76 cents, up 11 percent

# Dividend Per Share of 2.00 cents, up 41 percent

*Earnings before interest, tax, depreciation and amortisation

The Company's Chief Executive Officer, Mr Adrian Di Marco, said "On
behalf of the directors and management of Technology One Limited, I
am pleased to announce the financial results for the year ended 30
June 2002, showing our 7 th consecutive year of record revenues and
profits. This is an outstanding achievement, given the continuing
difficult market conditions for the IT industry, which has seen many
of our competitors report dramatically reduced revenues and earnings.

RESULTS SUMMARY

ACTUAL 2002 VS ACTUAL 2001 ACTUAL ACTUAL VARIANCE INCREASE
2001 2002 $(000) %
$(000) $(000)

Revenue (ex interest) 38,636 46,374 7,738 20%
Expenses 19,629 24,812 5,183 26%
EBITDAR 19,007 21,562 2,555 13%
R&D 7,840 8,135 295 4%
EBITDA 11,167 13,427 2,260 20%
Depreciation 749 836 87 12%
Amortisation of Goodwill 343 695 352 103%
EBIT 10,075 11,896 1,821 18%
Net Interest Income 1,355 948 (407) (30%)
Profit Before Tax 11,430 12,844 1,414 12%
NPAT Pre Amortisation 8,110 9,450 1,340 17%
NPAT Reported 7,767 8,755 988 13%
EPS cents Pre Amortisation 2.56 2.97 0.41 16%
EPS cents 2.49 2.76 0.27 11%
DPS cents - Standard 1.42 2.00 0.58 41%

Return on Shareholders
Equity (adjusted) 72% 55% - -

Net Profit Before Tax Margin 29% 27% - -
Net Profit After Tax Margin 19% 19% - -

R&D as a Percentage of
Revenue 20% 17% - -

Current Assets/ Current
Liabilities 2.87 2.90 - -

Net Assets 35,348 36,644 - -
Cash Balance 25,343 23,244 - -

ANALYSIS OF PERFORMANCE

Mr Di Marco said "Our 2002 results demonstrate Technology One
continues to grow strongly and profitably. Our new client licence
revenue grew by 24% this financial year".

NEW CLIENTS INCLUDED:

RETAIL

# Godfrey's
# Rabbit Photo
# The Good Guys

INTERNATIONAL

# Northern Utility Resources Malaysia
# Universal Trustee (Malaysia) Bhd
# Dorchester Pacific Limited NZ
# Metro Water Limited NZ
# Wakefield Hospital NZ
# Wanganui District Council NZ
# Wanganui Gas Limited NZ

LOCAL GOVERNMENT


# City of Charles Sturt
# City of Cockburn
# City of Greater Bendigo
# Great Lakes Council
# Local Government Association of Queensland
# Mackay City Council
# Moyne Shire Council
# Sutherland Shire Council
# Tamworth City Council
# Wagga Wagga City Council

CORPORATE

# Baptist Community Services
# Budget Rent A Car Australia
# Data Action Pty Ltd
# Dermody Petroleum Pty Ltd
# Freemasons Hospital
# The Gribbles Group Pty Ltd
# Lumley Technology
# Madec Australia
# Peter W Beck Pty Ltd
# Piedimonte Stanley Hall Pty Ltd
# Uniting Church
# University of New England
# Villa World Limited
# Willmott Forests Limited
# WorkPac Pty Ltd

STATE/FEDERAL GOVERNMENT

# Australian Radiation Protection and Nuclear Safety Authority
(ARPANSA)
# Building Services Authority
# Indigenous Land Corporation
# Lower Murray Region Water Authority
# Queensland Performing Arts Trust
# Royal District Nursing Service SA
# State Records of South Australia
# Tasmanian Department of Justice and Industrial Relations
# Tasmanian Electronic Commerce Centre
# WA Department of Training and Employment and WA Tafe

PROJECT SERVICES

# Strategic relationship with Publishing and Broadcasting Limited
(PBL) for customised software development
# Access Queensland
# NSW Police Service Informants Management System and Missing
Persons System
# Stage 2 Victorian Land Titles
# Archives One for the State Records of SA
# Raine and Horne
# Country Energy

Technology One has continued to invest strongly in its future, with a
continuation of our aggressive R&D program, now running at 17% of
revenue. Given that all our R&D is fully expensed, and is almost
equal to our Net Profit After Tax, this is a significant commitment
we are making in our future.

The Company's balance sheet remains strong, with total assets of $51
million and net assets of $36.64million.

The Company also announced a final dividend of 1.00 cents per share,
taking the total dividend for the year to 2.00 cents per share, an
increase of 41% over the previous year.

Our continuing strong performance is a direct result of our unique,
highly integrated and focused strategy, based on being both a
software product developer and a software services company. The
strong management disciplines we apply to our business have allowed
us to profitably convert opportunities into real wealth for our
shareholders.

SIGNIFICANT EVENTS

There have been many significant achievements this year. Highlights
included:

# The opening of a new Canberra office, to complete our national
network.

# The Finance One suite continued to perform strongly, adding 42 new
major corporate and government clients.

# Proclaim One continued to perform strongly, adding eight new major
councils, including our first council in New Zealand.

# Student One consolidated its position in higher education.

# Project Services continued to gain traction in the NSW market, with
the signing of a number of large software development projects,
including the publicly listed PBL group.

# We continued to invest in our international operations in New
Zealand and Malaysia, with further significant contracts signed in
each region.

# Approximately 100 new staff members were recruited to meet the
increasing demands for our products and services.

RESEARCH AND DEVELOPMENT (R&D)

Today, Technology One has arguably one of the largest software IP
(intellectual property) portfolios ever developed in Australia,
through our extensive range of application solutions:

# Finance One - Financial management and accounting
# Retail One - Retail
# Sales One - Wholesale and distribution
# People One - Human Resources and Payroll
# Proclaim One - Local Government
# Student One - Student Administration for Universities

This IP portfolio, coupled with our unique business model, allows us
to clearly differentiate ourselves from the majority of IT companies
in the industry.

As part of our R&D program, we are continuing to improve our existing
products, as well as investigating new product opportunities. We are
also investing heavily to ensure that our products stay at the
leading edge of technology, and do not become obsolete.

One of the most significant undertakings by the Company in many years
is our R&D program into a new generation Internet Architecture for
our products, based on the concept of smart clients. The Company is
working closely with Microsoft and its .NET platform. Early results
are very exciting, paving the way to develop an advanced new
generation of Internet Applications that combine the benefits of the
Internet with an advanced graphical user interface. Our new Internet
Applications will go far beyond the current limitations of HTML based
solutions.

ABOUT TECHNOLOGY ONE

Technology One is one of Australia's largest publicly listed software
companies. Its focus is the design, development, implementation and
support of powerful, enterprise wide software applications using
Client Server, Internet and eBusiness technologies for the corporate
and government sectors.

In particular, Technology One delivers totally integrated, powerful
enterprise solutions developed to meet the specific requirements of
vertical markets, including:

# Financial Management and Accounting (Finance One)
# Retail (Retail One)
# Wholesale and Distribution (Sales One)
# Human Resource Management (People One)
# Local Government (Proclaim One)
# Higher Education and Universities (Student One)

Technology One also provides large scale, fixed time, fixed price
custom software development services through its Project Services
Group to meet the exact requirements of a specific customer, using
Internet, eBusiness and Client Server technologies.

Technology One has achieved compound profit growth of approximately
40 percent per annum since 1992.

Technology One employs approximately 300 staff in Australia, New
Zealand and Malaysia. For further information, visit the Technology
One website www.TechnologyOneCorp.com

Further information: Adrian Di Marco, CEO, Technology One Ph: (07)
3377 7300 Mobile: 0411 221 764 [email protected]