Prophecy Builds on Strong BASIS
Released 4 March 2003
Prophecy International has enriched its appeal to the multi-billion
dollar utilities market with a powerful customer management product
aimed at energy and water companies.
The Australian based software multinational (ASX:PRO) announces
the acquisition of basis2 a web-enabled billing and customer management
solution that allows utilities to dramatically lower the cost of
serving their customers.
Prophecy has acquired the intellectual property rights to the product
from Brisbane based business partner, Helix Systems, with which
it has had a joint venture partnership in the development of utility
solutions for the past eight years. The acquisition was funded primarily
through the issue of 1.2 million Prophecy shares and a capped royalty
on future basis2 licence sales.
basis2 provides Prophecy with an opportunity to build new revenue
streams from the deregulated and multi-product utilities markets.
The very large worldwide utilities market offers enormous potential
for a functionally comprehensive Customer Information System (CIS)
built on technology from Oracle, the world's second largest software
The Energy Information Administration Division of the US Department
of Energy states that USA retail electricity sales in 2001 exceeded
US$210bn, while the USA Water and Sewerage market was worth US$32.1bn
in retail sales. As billing and customer management systems are
a core requirement for utilities, significant investment in new
systems is justified especially in a competitive market. Licence
fees are often in excess of A$1million with services to match.
The launch of basis2 will leverage the extensive utility experience
Prophecy has developed selling and implementing its internationally
successful utilities product, BASIS, which is used by organisations
in Australia, Asia and the US.
Prophecy International CEO Alan Greig said the availability of
basis2 provided an exciting upgrade path for the company's existing
BASIS customers. "Our customers have been keen to know our
development plans for BASIS, having enjoyed the rich functionality
that it offers. We are very pleased to announce basis2 today"
"Not only is basis2 designed for our current BASIS clients
with migration services provided by Prophecy" continued
Mr Greig, "but also other utility organisations will greatly
benefit from its Customer service emphasis and its applicability
to the multi-product and deregulated markets."
Mr. Greig said the need for utilities to deliver better customer
service but at a lower cost was a key driver in the design of basis2.
"Expectations for customer service constantly increase,
so basis2 is the flexible tool that enables utilities to meet and
exceed those expectations," he said.