British sales put Software of Excellence into black

Listed dental software developer Software of Excellence is finally in the black on the back of strong sales in Britain.

In the year to March 31, the Albany-based company increased revenue 20 per cent to $20.7 million for an after-tax profit of $204,215 compared with a $750,106 loss the previous year.

Earnings before interest, tax, depreciation and amortisation were $2.76 million (up from $900,000 in 2004), including capitalisation of $876,000 of software development.

Operating cashflow increased from $1.86 million to $3.39 million. Total cash stands at $9.22 million, giving the company a war chest to continue its so far successful strategy of breaking into new markets by acquiring existing operators.

Chief executive Brian Weatherly said that British sales generated 76 per cent of group revenues.

The company's Professional product accounted for more than half of all new software sales to British dental practices.

In the United States, where Software of Excellence focuses on sales to dental schools, there was an ebitda loss of US$736,000 ($1 million) before head office and research and development costs, compared with last year's US$280,000 loss.

Revenue increased by 25.3 per cent to US$776,000.