Analysis

GETTING INTO BED WITH GOVT IS GOOD FOR A SOFTWARE SUPPLIER

Sydney - Thursday - July 10: (RWE Aust Business News)

OBJECTIVE CORPORATION (OCL), the supplier of information technology software and services, has won market approval with its preliminary final results for FY2014, which remain subject to audit.

Revenue increased by 18% to $48.6m (FY13: $41.0m) and net profit after tax (NPAT) increased by 46% to $5.7 million (FY13: $3.9 million) for the year ended 30 June 2014 and directors expect this momentum to continue.

Asia Pacific revenue grew by 20% to $40.3 million (FY13: $33.5 million).

European revenue grew by 15% to $7.6 million (FY13: $6.6 million).

Objective's statement of financial position remains very strong.

At June 30, 2014 the company had cash and cash equivalents of $15 million with no external borrowings.

Directors anticipate paying a fully franked final dividend.

Mr Tony Walls, CEO, Objective Corporation said: "Given our long term commitment to R&D and execution excellence, our FY2014 results serve as evidence of our ability to deliver a return on investment in our people and the solutions we build for our valued customers".

"During the year, the company made progress in all major revenue lines and we fully expect to continue this momentum into the 2015 financial year."

Objective Corporation announced it has been re-appointed as an accredited supplier to the NSW Government under the NSW ICT Software agreement (Contract 607).

Objective and Oracle are currently the two only vendors to have been appointed as approved suppliers on this contract.

CEO Walls, of Objective Corporation said, "Objective's appointment to the NSW ICT Software agreement highlights our proven ability to deliver solutions that meet the requirements of NSW Government organisations and our alignment with the NSW Government's ICT Strategy."

As a registered supplier to the NSW Government, buyers can easily procure Objective ECM 8 solutions and services as part of the NSW Government's collaborative approach to ICT procurement reform. The purchasing process is streamlined, with simplified, pre-agreed terms and conditions, which enable agencies to acquire Objective software and services easily.

Objective solutions have been engineered in Australia to meet the requirements of government and regulated industries.

Objective ECM 8 is widely used by public sector organisations in NSW and around the world to effectively manage the large amount of content and knowledge that proliferates all levels of government, managing electronic information securely and ensuring transparency and auditability.

Walls said, "Objective is pleased to be working with the NSW Government to simplify the procurement process for their departments and agencies when they procure Objective products and services and are looking forward to helping.

SHARE PRICE MOVEMENTS

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Shares of Objective Corporation jumped 19.5c to a record high of $1.375 yesterday.Rolling high for the year is $1.375 and low 45c.Dividend is 2c to yield Earnings per share is The company has 83.7 million shares on issue with a market cap of $121.3 million.

In April, Objective Corporation announced the immediate availability of Objective Connect for HP TRIM, enabling organisations to easily and securely share information directly from their TRIM records management system with internal and external stakeholders, while maintaining the auditability and traceability required by security conscious organisations.

Objective Connect is a breakthrough hybrid platform enabling secure information sharing and process management between government departments, agencies, private enterprise and citizens.

Organisations avoid the risks commonly associated with sharing information through email, USB drives or insecure consumer cloud-based applications.

CEO Walls, CEO of Objective Corporation said, "Objective Connect for HP TRIM sees us continue to deliver our vision of enabling secure information sharing and process management between organisations, irrespective of their underlying content management systems. "Objective Connect for HP TRIM provides government grade security and conforms to the Australian Government Information Security Manual (ISM) for sharing information up to and including Protected level and Impact

An organisation uses the security principles already in place to dictate what information can be shared with whom.

"Objective Connect acts as an extension to HP TRIM, enabling an organisation to maintain the security and data sovereignty they require, while making it easy for individuals to share information.

This drastically reduces the on-going creation and management of additional silos of information, while maintaining organisational compliance.

"Today thousands of Government users in Australia, New Zealand and the United Kingdom are using Objective Connect to transform their business processes," said Walls.

"From procurement and legal processes, to collaborating with stakeholders or partners, Objective Connect enables the secure extension of business processes with other organisations."

Auditabiliy and traceability of information being shared is critical to organisations.

The Objective Connect Reporting Dashboard delivers real time consolidated visibility of all information being shared by all users. This ensures greater accountability and a complete view of the information being shared.

BACKGROUND

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Objective Corporation (OCL) is an established leader and specialist provider of content, collaboration and process management solutions for the public sector and regulated industries.

Its solutions empower effectiveness, efficiency and transparency, helping organisations deliver better customer outcomes at a lower cost.

The company joined the ASX list in August 2000.

Its products are engineered to meet the complex and stringent requirements of government and regulated industries.

Products are categorized into three groups namely enterprise content management, objective connect and objective online.

Solutions are provided to four key sectors namely public sector (government); justice; energy, resources & utilities; and housing and property.

OCL provides services support including: strategic consulting services; implementation services; education services; operational support services; and technical support.