Although the United States is the undisputed leader when it comes to technological innovation, a number of smaller Australian companies are definitely making their mark in the world of technology.
Luckily for local investors, the ASX has a number of exciting tech companies that are definitely worth a closer look, including:
Emerchants Ltd (ASX: EML)
Emerchants is a fast-growing payments technology company that provides pre-paid debit and credit card programs to businesses and government agencies across 13 countries. The company has built an impressive customer base over the past couple of years and this is now translating into strong earnings momentum. Unfortunately for prospective investors, this positive momentum appears to have already been priced into the share price following a rise of nearly 120% over the past 12 months. Nevertheless, Emerchants remains a company that definitely earns its place on my watch list.
Adacel Technologies Limited (ASX: ADA)
Adacel is a leading provider of aviation and flight simulation technologies for both the civil and defence industries. The company operates in 38 countries and has an impressive foothold in the massive U.S. aviation market. Importantly, Adacel is now generating a significant portion of its earnings through a growing recurring revenue stream that should set it up for consistent growth in the future. Investors should note that the shares can be quite volatile, although they offer a reasonable level of value at current prices.
Smart Parking Ltd (ASX: SPZ)
Smart Parking develops and installs car parking systems aimed at making the parking process more efficient for all parties involved. The company's systems are already installed in some of the largest shopping and parking centres in Australia, New Zealand and the UK. Importantly, Smart Parking has shown improved financial performances over the past three years and is well positioned to become profitable over the next two years. Although the company would still be considered speculative at this stage, I think the global opportunity is large enough to warrant further attention.
Webjet Limited (ASX: WEB)
The online travel agent is already a household name amongst Australian travellers, but Webjet is now increasingly turning its attention to much larger international markets. While some investors may not consider Webjet as a pure technology company, it does operate a unique booking and search platform that appears to have provided it with an edge over the other players in the sector. The company has also made a number of significant acquisitions recently that will allow it to provide a more diversified offering to travellers. The shares have had a nice pull-back since mid-October, although I would wait for further share price weakness before becoming a buyer.
