TmaxSoft and Hancom are going to make more than 100 billion KRW ($83.8 million) in sales this year and this will be the second time that a SW package company will be making more than 100 billion KRW in annual sales after DuzonBizon did it in 2010.
TmaxSoft and Hancom made announcements on the 20th that they are making about front-end of 100 billion KRW in sales after making tentative calculations for this year’s sales.
TmaxSoft is estimating that it will make about front-end of 100 billion KRW in sales this year which is about 10% increase from last year when it made $75.9 million (90.6 billion KRW). It is estimating that it will make about $22.6 million (27.0 billion KRW) in operating profit this year which is about 40% increase from last year when it made $15.9 million (19.0 billion KRW).
TmaxSoft believes that it is able to make such performance after firmly solidifying its position in markets for MW (middleware) and increasing sales in TmaxData’s products such as Tibero and ZetaData. Increase in sales from its major products such as Tibero and OpenFrame also helped increase of its sales.
“We were able to exchange many of Oracle’s products with our products at major public sites such as Korea Electric Power Corporation and Korea Rural Community Corporation.” said a representative for TmaxSoft. “Our sales are increasing as number of new contracts increases and as we signed off on large contracts with foreign companies regarding Tibero and OpenFrame.”
Hancom is estimating that it will make 100 billion KRW in annual sales this year which is about 20% increase from last year when it made $70.8 million (84.5 billion KRW). Hancom is able to maintain this positive trend for its sales by expanding its office SW in South Korea and through successful M&A.
“Fact that many huge public organizations and private companies chose our products played a huge role in increase of our sales.” said a representative for Hancom. “Sales from products other than office also increased by acquiring other SW related products such as web office, electronic books, and automatic translation.”
TmaxSoft and Hancom are able to make more than 100 billion KRW in annual sales since their establishments 19 years ago and 26 years ago respectively.
According to Korea Software Industry Association, DuzonBizon is the only company out of South Korean package SW companies that is making more than 100 billion KRW in annual sales.
“Although this year was a tough year for SW industries, it is amazing that TmaxSoft and Hancom are making more than 100 billion KRW in annual sales with just pure package SW.” said Department Head Cho Young-hoon of SW Industry Association. “This will become a positive example for other SW companies.”
It is shown that this year’s sales of package SW companies in major fields also increased slightly. It is estimated that DuzonBizon (ERP), which is making the most sales out of all package SW companies, will make about $142 million (170 billion KRW) in sales this year which is 10% increase from last year when it made about $126 million (150 billion KRW). This year’s sales of major companies such as EXEM (monitoring, Big Data), Younglimwon Soft Lab (ERP), WISEnut (search, Big Data), Rsupport (remote support), and Inswave Systems (web standards) also increased about 10 to 20% from last year.
“Although many predict that forecast of domestic markets in 2017 is not going to be good, there will be continuous demands for SW for Industry 4.0 and others.” said Team Leader Ji Eun-hee of Software Policy & Research Institute. “Rather than being passive during a slow season, one needs to focus on development of technologies and services so that it can actively respond to demands.” She also added by saying that there will much more SW companies that are going to go after foreign markets rather than domestic markets that are struggling and that South Korean Government needs to support SW companies with competitive edge by establishing policies for promotion of exports.
Staff Reporter Kim, Jiseon | firstname.lastname@example.org
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