Exporter defies high kiwi dollar

Dental software exporter Software of Excellence has a small profit in sight after a $750,000 loss last year, despite being hit by a high New Zealand dollar.

The company, which does three-quarters of its business in Britain, is forecasting a net yearly result before tax to the end of March of between a $250,000 loss and a $150,000 profit.

"About 90 per cent of our revenue is offshore so the exchange rate is having a reasonable impact on our top line and bottom line," said Software of Excellence finance chief Bryce Donnell.

The company hadn't done a complete analysis of the high dollar's effect, he said, but continually reviewed its currency hedging policy and pricing in a bid to compensate. However, pricing was determined more by local market conditions than exchange rate pressures.

The company's final result, on revenue for the year of about $20 million, would depend on whether customer sign-off on a number of contracts happened before March 31, said Donnell.

"Often there are delays that are out of our hands, so things are on track provided we can get the clients' acceptance of what we have delivered to them."

Last July, Software of Excellence bought a United States rival in the dental school software market, General System Design (GSD), making it the world's biggest supplier of such software, the company said.

The acquisition of the Iowa company had increased recurring revenue slightly above 45 per cent, Donnell said.

"We'd like to drive that figure as high as we can."

Donnell said the result, after last year's loss, was looking positive. "To turn it around and take on GSD is very pleasing."

Software of Excellence has about 70 New Zealand staff, based at Albany, most of whom are software developers.