Quality Software Product Plc’s investment in Universal OLAS accountancy products and the underlying Multiple Cross Platform Engineering technology appears to be paying dividends at last. At the interim stage, pre-tax profits for the Gateshead, Tyne & Wear financial software company were up 322.4% at UKP604,000 on turnover up 10% at UKP7.3m. In terms of turnover, […]
Quality Software Product Plc’s investment in Universal OLAS accountancy products and the underlying Multiple Cross Platform Engineering technology appears to be paying dividends at last. At the interim stage, pre-tax profits for the Gateshead, Tyne & Wear financial software company were up 322.4% at UKP604,000 on turnover up 10% at UKP7.3m. In terms of turnover, sales of products, predominantly Universal, rose 57% to UKP2.2m, maintenance was up 13.6% to UKP2.5m, but services fell 13.3% to UKP2.6m. Quality expects maintenance and service levels to pick up in the second half as over 90% of existing customers have maintenance contracts and the new product sales should generate more support demand. Net assets rose UKP2.3m to UKP13m in the half UKP604,000 of profits and UKP1.7m from its May rights issue, and gearing fell to 21% from 32%. UKP2.3m was spent in developing Universal OLAS in the half and Quality expects this level to continue into the second half. However in 1995 development costs will drop after it rolls out the Procurement Management and Fixed Assets modules in January. Quality will halve development head-count to 50 and move the other 50 to revenue-earning lines. The two new modules will bring the total Universal offering to six: General Ledger, Sales Ledger, Purchase Ledger, the QED reporting tool, Procurement Management and Fixed Assets Management. In 1995, it will add Materials Management and Inventory Management modules and is also looking to expand Universal by partnering software houses specialising in payroll, personnel and distribution. Quality also wants to license its Multi Cross-Platform Engineering to third party developers to generate more modules. MXPE uses a single system-wide repository containing a library of re-usable and pre-tested program objects, so the application developer need only write program code specific to the problem. This program code is then merged with the appropriate objects.
Beats me over the head
Applications developed are independent of operating system, transaction processing monitor, database management system and user interface and therefore are transferable onto different operating systems and user interfaces. However Quality boasts that no performance is sacrificed as software tools at the application generation stage optimise the target environment. Currently Universal OLAS runs on DB2, Oracle, Sybase and Ingres databases and on MVS mainframe, RS/6000, Solaris, Sequent and Hewlett hardware. Quality’s relationship with Global Software Inc, announced in February to facilitate Quality’s entrance in the US, has netted its first contract – Avis Inc in New York. Quality is looking to expand this relationship and exploring similar partnerships for Europe, the Far and Middle East, and Africa and expects to sign another agreement this year. At the half year Quality had 19 clients, over half on mainframes with DB2, and unlike other financial software providers – most notably Coda Plc – Alan Mordain, chairman, believes the mainframe server is going to be around for a long time to come. Mordain does not want to move Universal onto other hardware because of the extra support, maintenance and hardware costs, but if someone comes and beats me over the head with enough money, I’ll consider it!. Quality is recommending the payment of a penny interim dividend.