Software firms report growth

ACCOUNTING and business software suppliers MYOB and Reckon have both reported solid growth in sales and profits in their latest financial results.

MYOB reported 20 per cent growth in operating revenue to $44.9 million for the six months to June 2003.

This translated to a 73 per cent increase in net profit to $4.2 million.

Reckon, which trades as Quicken Australia, reported a 4.7 per cent fall in revenue to $12.3 million for the half year.

However, after adjusting for a change in accounting policy, which inflated revenue in the prior year, the company said revenue grew by 14.1 per cent.

Its net profit more than doubled to $2.6 million.

MYOB’s chief operating officer Matthew Critchley said the increased revenue “lends credence to our confidence that there is continued growth from a variety of sources for MYOB in the years ahead”.

One source of revenue growth will be further international expansion.

MYOB presently generates about one third of its sales internationally, mainly in the US and New Zealand, and is expanding in several other markets.

It also expects to lift revenue via the launch of new services, such as the MPowered Services launched last month.

These services are designed to automate the interactions between small to medium sized businesses and other organisations.

MPowered invoices help businesses cost effectively offer payment options such as BPAY and credit card by phone, which facilitate faster and more efficient payments.

A similar service designed for accountants was launched early this year.

MPowered superannuation connects MYOB payroll software on the desktop to hundreds of superannuation funds, providing a simply way to make superannuation contributions.

Reckon has the backing of major US software developer and 12 per cent shareholder Intuit.

It customises Intuit products to meet local market requirements and has several product launches planned for 2003.

These include a new version of Payroll Premier, which it claims is the most widely used stand-alone payroll solution in Australia, and an updated version of QuickPOS, its point of sale solution for SMEs.

Reckon is also expanding the product offering for medium sized businesses.

An example is the planned launch this year of a new enterprise solutions product designed specially for companies with between 20 and 150 employees. It has 320,000 registered small business users and 150,000 registered personal users.

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