2002 Press Releases

Objective Business Update

Knowledge and process management software developer, Objective Corporation Ltd (ASX:OCL), today announced it expected revenues of $6m, with a profit before tax of approximately $0.7m for the first half of the 2002 financial year. Revenue is up 43% on the same period last year, and profit is up on the same period last year from a loss of $0.4m.

Objective's cash position remained sound at 31 December 2001, with cash of $2.2m, no debt and receivables of $4.2m.

During the past six months, Objective Corporation invested approximately $1m in research and development (R&D), which is a 47 per cent increase over the same period last year. This amount has been fully expensed.

The company is currently in preferred vendor negotiations for contracts in Asia Pacific and Europe, however these contracts had not concluded by 31 December 2001.

Mr Tony Walls, Joint CEO, said, despite being profitable, delays in purchasing decisions have marred the first half result. However, he remains cautiously optimistic the full year result will still meet internal budgets.

Despite these delays, Objective's Asia Pacific operations delivered a profit before tax of approximately $2m after fully expensing R&D costs. The company continued to work on successful implementations with its broadening customer base and with its strategic partners.

"During a period of mass layoffs and unprecedented turmoil in the technology sector, Objective continued to recruit the industry's best and brightest talent," said Mr Walls. "In these times, it is important to maintain an appropriate balance between profitability and investment in future growth."

Objective continues to make a significant investment in its European operations with the opening of an additional sales and support office in Northern Ireland.

"Due to the ongoing investment in the development of our global presence, our European operations incurred losses of $1.3m for the six months to 31 December 2001 after expensing all costs," said Mr Walls.

The company is currently engaged in negotiations on several projects and anticipates further European success in the second half of FY2002. Objective was recently awarded new pilot projects in UK Government Departments. These projects follow successes earlier in 2001 with government agencies Local Enterprise Development Unit (LEDU) and Department of Enterprise, Trade and Investment (DETI) in Northern Ireland.

In September 2001, the company released its latest technology - Objective 6i. Large audiences, from both the public and private sectors, attended product launch events around Australia. Feedback from delegates at these events and existing customers indicate increased levels of demand for knowledge and process management solutions.

"As governments worldwide accelerate their move to electronic recordkeeping and online service delivery, Objective is in a strong position to take advantage of these business opportunities.

"We continue to consolidate our leading position in the Australian market, expect near term European success and anticipate a solid result for the full year," said Mr Walls.

Objective's customers include government organisations such as the Australian Defence Organisation, IP Australia, the Commonwealth Department of Transport and Regional Services, Queensland Police Service and in Northern Ireland the Local Enterprise Development Unit and Department of Enterprise Trade and Investment; utilities organisations including Country Energy and corporations such as Clyde Industries, ResMed Limited, Northparkes Mines and UniSuper.

Note: All amounts disclosed within this announcement are still subject to audit review

Related Stories

Objective tips profit rise The Australian Financial Review By Mary Bryan

Will 2002 be brighter? idm.net.au By Alicia Camphuisen