2004 Press Releases

Objective Corporation Delivers Outstanding First Half FY2004 Results

Leading Enterprise Content Management (ECM) software company, Objective Corporation Limited (ASX: OCL), today announced its results for the six month period to 31 December 2003.

Financial Summary

Financial Highlights

Objective reported half-year revenue of $11 million, a 69 per cent increase over the previous corresponding period and a company record. The company also reported a net profit after tax of $2.0 million, a 397% improvement over the previous corresponding period.

International sales revenue exceeded domestic sales for the first time in the company's history. As the company successfully expands its international footprint, this trend is expected to continue.

The company's balance sheet continued to strengthen with a 56% increase in net assets to $8.5m over the previous corresponding period with $11.5m in cash and receivables. Further, the company remains debt free and has no intangibles.

The company maintained its focus on expanding the capabilities of its world-class software in line with customer and market place demands. A further $1.6m (fully expensed) was invested in research and development (R&D), also a first half record amount.
No interim dividend has been declared, however the company expects to pay a full year, fully franked dividend at least in line with last financial year.

Tony Walls, Executive Chairman, Objective Corporation, said, "Clearly these are excellent results for the company. Our outstanding revenue growth is a direct reflection of the successes we are sharing with our customers."

Operational Highlights

During the past six months, Objective again demonstrated excellent growth and increasing market acceptance in Europe and Asia Pacific with both regions delivering significant revenue growth and profitable results.

"Objective has further extended its significant presence in the Public Sector marketplace, where the benefits of the company's direct business model are constantly reinforced. Government organisations are educated and discerning buyers of enterprise software applications and demand reliable, easy to use, low-risk solutions. We develop close relationships with our customers and we are willing to accept responsibility for end-to-end delivery of solutions. This is recognised by our customers as a key benefit in forming a partnership with Objective," said Mr Walls.

The company continued to successfully expand its international footprint during the first half with the opening of offices in Edinburgh, Scotland and Wellington, New Zealand. These offices will provide direct support to our customers in these locations.

A highlight for the European region was the selection of Objective by the Scottish Executive as the standard for integrated document and records management throughout the Scottish government. This selection, again endorses the company's capability for large-scale, seamless systems that span multiple government agencies.

The company witnessed a solid 30% growth in the Asia Pacific region and welcomed many new customers, including New Zealand's Ministry of Social Development and Land Transport Safety Authority, along with the Australian Government Solicitor and the Victorian Curriculum Assessment Authority.

Objective continued to invest in its implementation capability with the success of this investment reflected in the achievement of an increasing number of customer business outcomes.

Outlook

The outlook for the 2004 financial year remains excellent and the company anticipates significant organic growth in both revenue and profitability for the full financial year.
The Enterprise Content Management (ECM) market, the niche of the software market in which Objective operates, is experiencing significant growth. Objective will continue implementing its successful growth strategy by targeting new markets and deploying its proven and trusted operational model.

"Maintaining an appropriate balance between profitability and investment in our future growth remains a key focus of our executive team," said Mr Walls, "the benefits of which will be delivered to all stakeholders: our customers, our people and our shareholders."

"Objective Corporation is built on the outstanding talents of our people. The board and management would like to thank all of our stakeholders for their contribution and commitment to our shared success," said Mr Walls.

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