GEAC's pulse beating a little faster

By ADAM GIFFORD

Software company Geac is showing renewed life, including a plan to sell its New Zealand-developed Streamline enterprise planning product through indirect channels.

The company went through some tough times worldwide during the post-Y2K slowdown, made worse by some poorly executed acquisitions.

But Dominic O'Hanlon, Australia and New Zealand managing director of Geac's enterprise application systems division, said recent acquisitions were driving growth.

"We bought a company called Comshare last year whose MPC [management planning and control] product is a leader in business performance management and strategy management. We are taking that to our customer base," O'Hanlon said.

Geac is also taking parts of Comshare's technology and incorporating it in other products such as its System21 mid-market enterprise resource planning (ERP) system and SmartStream financials.

Another recent win is the sale of its RunTime product life cycle management tool to Australian sportswear manufacturer Rip Curl.

"A lot of the products Geac is buying are complementary to what is in its existing suites, but they are in growth markets," O'Hanlon said.

In New Zealand Geac has several customers for its Pathway and GEMS local government systems and a large number of sites using the locally developed TIMS and i2 manufacturing suites.

Streamline is a new-generation Microsoft-based accounting and distribution system which was developed at great cost here, then languished as Geac's management in the Northern Hemisphere put their attention elsewhere.

O'Hanlon said Streamline was best sold through channel partners.

"We spent the money building it, and now we need to get a return," he said.

"It has a life in the UK, where we have had some good sales."

It has also been picked up by Auckland marine manufacturer Rayglass Boats.

General manager Shane Brown said the company had not previously had a computer system and needed something to cope with expected growth.

"We are a diverse company. While we are heavily involved in manufacturing, we also wholesale and retail other products, import, export, and we have a big servicing department, so we were looking for a diverse package," Brown said.

Geac reported revenue of US$106.9 million in the first quarter to July 31, up 5 per cent on the same quarter last year.

Almost $90 million came from professional services and maintenance fees from older software lines, but revenue from sales of new software licences jumped 20 per cent to $15.5 million.

During the 2004 financial year it made a US$57 million profit on revenue of $445 million.