Business Description:
Reckon Limited (RKN) is an Australian-based company, provides business management solutions for accounting and bookkeeping professionals, as well as small to medium sized business, small office/home office users and personal wealth management sectors across Australia, New Zealand, the UK, USA, and Asia. The Company operates in three divisions: Business, Professional, and nQueue Billback.

Strategy Analysis:
In recent years, Reckon Ltd has embarked on a successful, broad segmentation strategy in order to diversify its revenue base. It has also made sensible acquisitions in closely-related businesses. In light of the mature state of the industry, RKN needs to ensure current products and technical help services are reliable to counter competition. In order to drive growth, the strategy includes: 1) Core Product Augmentation - refreshing core products to make them more appealing to existing/new customers; 2) Seamless Integration of Reckon products - by making more products work together efficiently, the company will be able to offer an end-to-end suite of products which will give clients more reasons NOT to change products providers; 3) The move to Online - this sales push will result in greater overall revenues due to the annual subscription-based pricing and offer existing clients an alternative to competitor´s online offerings. Intuit Inc. has flagged stagnating growth in domestic markets and sees international markets as the answer. The exclusive license allowing RKN to distribute Quicken/QuickBooks expires in 2015. With Intuit already the largest shareholder of RKN (11.12% holding), a takeover offer is a possibility. Reckon reported NPAT down 6% to $8.34m for the half-year ended 30 June 2011. Revenues from ordinary activities were $46.65m. Diluted EPS was 6.0 cents compared to 6.3 cents last year. Net operating cash flow was $15m compared to $15.79m last year. The interim dividend declared was 3.5 cents in line with 3.5 cents last year.