Objective Corporation (ASX: OCL), a specialist provider of content, collaboration and process management solutions, today announced a profit after tax of $1.2 million for the six months to 31 December 2010 (FY10 H1: $1.2 million). Revenue was $20.9 million (FY10 H1: $21.1 million). 

Asia Pacific revenue was $16.7 million, representing an increase of 18 per cent over the previous corresponding period (FY10 H1: $14.2 million). European revenue decreased by 42 per cent to $3.6 million (FY10 H1: $6.2 million).

At 31 December 2010, the company had $8.5 million in cash and cash equivalents, net of borrowings.

Consistent with all prior years, an interim dividend was not declared.

Financial Summary

Mr Tony Walls, CEO, Objective Corporation said: “The first half results are respectable given the economic conditions in the United Kingdom.

“The Asia Pacific region performed well with an 18 per cent increase in revenue, year-on-year. By contrast, the United Kingdom government austerity measures have impacted our European revenue in the current period.”

Operational Highlights

During the first half of the year, the company maintained its focus on delivering results for customers and solutions for the public sector.

Of the highlights, the company was awarded a strategic long-term contract with the NSW Roads and Traffic Authority to rollout an enterprise-wide solution for 6500 users and also achieved success in Victorian state government with the Victorian State Trustees.

Investment into research and development continued and expenditure was $4.6 million, approximately 22 per cent of revenue (FY10 H1: $5.0 million). The result of this investment was the launch of multiple next generation releases.

Objective’s cloud based solution, Objective Online 4, was successfully launched at two customer events held in the United Kingdom. New Online customers East Ayrshire Council and the Strategic Development Planning Authority (comprising of Dundee City Council, Perth and Kinross Council, Angus and Fife Councils) have selected Objective’s Policy Lifecycle Management solution to enable improved collaboration, production and public consultation on public policy documents.

An unprecedented number of new innovations were revealed at Objective’s international customer conference, Collaborate 2010. Including: Objective 8.0, the next generation of Objective’s world class enterprise content management solution; Objective Executive; Objective Discover; Objective Enterprise Search; Objective Committees (online) and Objective for Blackberry.

Objective also entered into a strategic partnership with Exalead for the provision of next generation full text and enterprise search technology. This is a significant long-term investment for Objective and one that we expect will deliver benefits for all of our stakeholders into the future.

Outlook

Mr Walls said: “We remain cautiously optimistic for the next half. We anticipate Asia Pacific will maintain its stronger performance.

“The United Kingdom public sector austerity programme and reductions in headcount has created some near term challenges, however we are confident of an improved second half in the region.”

The board and management of Objective Corporation would like to thank the company’s customers and employees for their commitment and valuable contributions to the success of the company.