Optus extends contract with ASX-listed software smallcap Knosys worth over $1m

Organisational software provider and ASX-listed tech smallcap Knosys (ASX:KNO) signed a new one year contract worth over $1m from Optus on Thursday. 

Knosys develops Enterprise Management System (EMS) which is used in large businesses and governments of all sizes to centralise and archive mammoth amounts of information. 

The company’s flagship EMS product is called KnowledgeIQ. 

Knosys has offices in six locations around the world, and more than 380,000 customers of its software.

“Our development focus over the next 2 to 3 years will be on furthering the capability of KnowledgeIQ to improve employee productivity and on further enhancements to its usage in customer facing activities,” Knosys MD John Thompson said. 

High-profile Australian customer base 

In October last year, Knosys saw ANZ Bank extend a 3-year contract using Knowledge IQ. 

Now seeing an extension from Optus, the company is evidently building a growing portfolio of high-impact clients in the Australian context. 

“Over the past six months, we have secured contract extensions from our major KnowledgeIQ customer base, including ANZ Bank, Singtel and Optus,” Thompson added.

It also holds a contract with the Victorian government agency Office of Public Prosecutions.

“Knosys enters 2023 with a diversified customer base, a portfolio of software solutions, strong recurring revenues, and the opportunity to continue growing.”

Knosys sells its products on a Software-as-a-Service (SaaS) basis, meaning recurring annual subscription fees are paid, as opposed to being a one-off software licence in perpetuity. 

SaaS has become the dominant subscription model of the non-hardware tech sector broadly. 

Want to know more? 

Using Market Index’s free company data, investors can make a series of initial considerations on Knosys with regards to company performance. Those include but are not limited to: 

• Share price of 9.9c*

• Market cap of $21.3m* 

• One year performance down -26.6% 

• Year to date performance up 11.8% 

• Average 4 week volume of 65,237 shares

• Ranked 149 of 241 technology sector companies 

• Company had $4.13m in cash at end of September quarter 

• It spent $1.1m over the same period 

*At the time of writing 

The state of Knosys's one year charts