Prophecy Home
Search Back to home

news & events

> press releases
> events
> newsletters
> register for events

Home > News and Events > Press Releases

Strong Second Half Prelude to Growth for 2001
Released 29 August 2000


The 12-month period to June 2000 has brought two distinct phases. The six-month period to December 1999 was markedly affected by Y2K concerns, resulting in a significant slow down in buying decisions for the half. This position was reversed in the second half as pent up demand saw sales activity accelerate to produce a record second half revenue of $10.3 million. This compares to last year's result of $7.5 million for the second half.

Thus the investment in additional sales, marketing and R & D resources has produced results subsequent to the Y2K slowdown. We expect the sales activity to remain buoyant and provide a good foundation for growth in the 2000-2001 year.

In particular, the Framework application is being very well received with a number of significant licences finalised recently, including a large deal with a major Australian Banking Group that has provided another significant local endorsement for this unique technology.


For the six-month period ended 30 June 2000 Prophecy International Holdings Limited has reported revenues of $10.3 million with an operating profit after tax of $2.5 million, providing a very pleasing result for the second half. However with first half revenue of $2.5 million and operating loss after tax of $2.9 million, the consolidated full year result was revenue of $12.8 million and a small after tax loss of $0.4 million.

During the course of the financial year, our Balance Sheet was strengthened as a result of a placement which raised $12 million for new working capital. At 30 June 2000 total assets stand at $21.6 million with net assets of $17.6 million (compared to $6.3M 12 months ago). With the expanded number of issued shares, the net tangible asset backing per share has risen to 38.3 cents compared to 13.7 cents last year.

Our cash position remains very strong with $9.2 million in cash at the end of the year and a further $8.9 million to be collected in receivables.

The company is virtually debt free and expects to remain that way as a result of its strong cash position.

Although the second half showed a very strong result, the full year resulted in a small loss and the directors have decided not to declare a dividend, opting instead to retain funds to enable investment for future growth.


The group embarked on a number of significant projects during the course of this year. We developed and released our e-business portal which is completely dynamic and eliminates the need to duplicate business systems for deployment via the internet. The other major development which has been embarked on is the complete redevelopment of our Framework Rapid Application Assembly software utilising the Java development environment. This is expected to significantly enhance the market prospects of our Framework product set.


During the course of the financial year Prophecy announced the appointment of Mr Bob Shaw as its non-executive Chairman. Bob has a very strong background in sales management and has directed that experience toward achieving growth by increased market penetration for Prophecy's Framework Rapid Application Assembly software.

Significant progress was made during the course of the year with our Framework product being utilised in a number of major and strategic sales situations. Prophecy embarked on the significant development and implementation of a Framework based solution for the South Australian Government to manage its "Emergency Services Levy (Fixed Property)" system. Stage 1 of this project was completed in a very short timeframe, allowing the production of the first invoices on time and demonstrating the full power and speed of development utilising the Framework Rapid Application Assembly software. An additional major project has been carried out over the course of the year, delivering increased functionality and relating to legislative changes to the system.

Resources were also invested into a major opportunity for our Framework software solution within a large Australian bank. New technology was required as the base for a major new software development project within the bank. The Prophecy Framework technology was chosen after lengthy assessment including a comprehensive "proof of concept" phase which was used to highlight the unique advantages of the Framework environment for large and complex development projects. The end result provided a significant new contract for Prophecy's Framework software, and will involve the company in a major services project over the course of this financial year, assisting in the delivery of new systems built on the Framework base.

Another Framework success that is expected to reap on-going rewards was an evaluation project with the Colorado State Government. The Framework passed with flying colours and has been licenced to develop a number of departmental systems. Further opportunities are expected this year in the State Government market space.

Significant partnerships were signed during the course of the year. Each of our branch offices signed agreements with Computer Associates to become ISV partners. This enables the implementation of joint marketing campaigns to enhance the respective product sales of both groups on a world-wide basis. Prophecy signed a Partnership for Development Agreement with Sun Microsystems under which SUN has provided significant computer hardware resources and services to assist our R & D team in completing a JAVA version of the Framework product.


The very pleasing second half recovery in terms of both revenue and profit, bodes well for the new financial year. Spin off business from sales activity in the first part of this calendar year is expected to be reflected in a healthy first half for this new financial year.

Prophecy is actively marketing its products under the e-Foundation banner, providing complex business solutions that can be rapidly brought to fruition to satisfy both internet, front office and back office functionality. Recent major success in this area provides the platform for significant growth this year.

Targeted partnerships with a number of the world's largest IT companies continue to be pursued and it is expected that the effort invested to date will bear fruit during the course of this year. The leverage of such partnerships can be tremendous in obtaining new markets and world-wide penetration.

Prophecy expects that given the success of the company's sales activities and sound trading conditions in the company's major markets, significant improvement over last year's result is achievable.


More information...

Press Releases

View our Events


copyright:disclaimer secure areas