2003 Press Releases

Objective Corporation reports positive results for first half

Leading software developer, Objective Corporation (ASX:OCL) today reported an increase in both revenues and profit for the six-month period to 31 December 2002.

Highlights of the first half results include:

	Revenue of $6.2 million, up 13%
	Net profit after tax of $0.4 million, up 97%
	Research & Development (R&D) expenditure of $1.36 million (fully expensed), up 38%
	Both Asia Pacific and European operations profitable and cash flow positive
	Positive operating cash flow of $1.5 million
	Cash at the end of the period of $5 million

"Whilst reporting a modest profit for the period, we are pleased with the company's progress. Objective continued to demonstrate solid growth and increasing market acceptance in both Europe and Asia Pacific," said Mr Tony Walls, joint CEO, Objective Corporation.

"Despite our business being skewed to the second half, the first half has seen Objective record profitability and positive cash flow in both Asia Pacific and Europe. Achieving these outcomes while investing heavily in our future growth, underscores the strength of Objective's business model and management."

"Objective's financial position is very solid. During the first half we continued to build our cash position and finished the period with $5 million cash on hand in addition to receivables of a further $3.6 million. Objective has one of the cleanest balance sheets in the ICT sector, with no capitalised R&D, no goodwill to amortise and no debt," said Mr Walls.

Objective's European operations delivered its best first half performance to date. European customers now include the UK Government's Forensic Science Service, international construction consultancy Cyril Sweett and a multinational Objective implementation with Swedish pharmaceutical giant, Astra Zeneca.

In a significant development for the company's European expansion, Objective was recently selected to supply an enterprise electronic records management solution to the UK Public Record Office, the agency that advises government on best practice in records management and defines the functional standards to be met by records management systems used by UK government agencies.

In the Australian market, Objective was included on the panel contract to supply Records and Information Management Systems (GSAS ITS 2323 RIMS) to the NSW Government and announced the first contract from the panel with the NSW Office of the Director of Public Prosecutions. Additionally, Objective gained certification by the Public Record Office of Victoria (PROV) against its Victorian Electronic Records Strategy (VERS) specification.

In New Zealand, Objective implemented an information management solution at Archives New Zealand, the custodian of records for the NZ government and agency that provides advice to government departments on sound recordkeeping practices.

The company attributes its ongoing success to a resolute commitment to delivering valuable business outcomes for its customers and its sustained focus on developing world-class, market-leading software.

During the past 6 months, Objective significantly boosted its investment in R&D by a further 38% over the previous corresponding period. All R&D has been fully expensed.

"The high level of productivity and the quality output delivered by R&D has resulted in Objective's technology maintaining an enviable reputation in the industry, evidenced by a growing list of customers and the recognition achieved with various government standards bodies, internationally."

"Moving forward, we will continue to invest in our people, our technology and our future," said Mr Walls.

The Board and management of Objective Corporation would again like to thank the company's valued customers and staff for their commitment and contributions to the growth and successes throughout the first half.

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