CFO Magazine, Ann-Marie Moodie
Released June 2001
Sharks have been circling for bargains in the technology sector
since the April 2000 tech wreck but business software company Prophecy
International Holdings is unlikely to be a takeover target despite
its recent successful overseas expansion.
"Our share price was going to be hit by the technology sector
going backwards but there's less of a risk of us being a target
of predatory companies because the majority of our shares are still
held by our founders," CFO Paul Turner says.
The South Australian-based developer of tailored e-commerce and
back-office software solutions, recorded $12.3 million in revenue
in 1999-2000, with a share placement adding $12 million to working
"The 1999-2000 fiscal year was a mixed game of two halves,"
"The first half was dominated by our customers' fears about
Y2K issues, whereas in the second half of the year we recorded period
profit and revenue. So far, this year, our results have not been
as bouyant but revenue is up 60 per cent, and with our overseas
expansion plans we expect a positive second half for 2000-2001."
As a software developer, Prophecy International values innovation
as a cornerstone of its success and actively rewards employees for
developing and implementing new ideas.
"We specifically address innovation in reviews of our employees'
performance," says Turner. "The company has a profit sharing
scheme in which a percentage of our profit goes into a pool and
is distributed among staff, weighted against their performance reviews."
Individual ideas, eg, a report writing tool, which has now been
incorporated into the company's new product lines, is a rewarded
with prizes such as shopping vouchers."
Future plans include further expansion into overseas markets, especially
the US. "We see our future as being export driven," Turner