TechnologyOne share price rises on cyber incident update

Here's the latest on TechnologyOne's investigation.

| More on:
A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • On Wednesday, the market learned that TechnologyOne had suffered a cyber incident
  • The tech company told investors today that its affected systems had been restored and were fully operational
  • Cyber experts have confirmed that the systems are secure

The TechnologyOne Ltd (ASX: TNE) share price is currently up 1.64%, trading at $14.90 after the ASX tech share gave an update today regarding its cyber incident.

Earlier this week, the company entered a trading halt upon discovering that a third party accessed its internal Microsoft 365 back-office system.

TechnologyOne today sought to reassure the market about what was going on and what its investigation had uncovered.

In its announcement to the ASX, the company reminded investors that it acted immediately to investigate the issue.

TechnologyOne advised it had initiated its cyber response strategy. This included appointing "leading security and forensic experts, among other specialists, to work through containment measures".

What TechnologyOne knows so far

The company reiterated that its customer-facing software as a service (SaaS) platform was "not connected to the Microsoft 365 system and therefore has not been impacted". It added:

TechnologyOne reaffirms that its internal back-office system was isolated to contain the incident, that the system was successfully restored and is fully operational.

Subsequently, third-party cybersecurity experts have confirmed our Microsoft 365 system is secure and there has been no further illegal activity detected.

The company advised its focus remained on the investigation to determine what data may have been accessed. It will then engage with any impacted individuals on "appropriate actions".

In a bid to further reassure customers and investors, the company said:

TechnologyOne maintains administrative information on its back-office system. The information held by TechnologyOne on its back-office system is separate to customer's information and data on
TechnologyOne's SaaS platform, which is safe and secure.

As the investigation progresses and further facts are established, the company will "continue to keep all relevant stakeholders updated".

What happens next?

TechnologyOne will update the market on its performance and outlook when it releases its FY23 half-year result on 23 May 2023 — only a couple of weeks away.

Considering the TechnologyOne share price is in the green today, investors don't appear too concerned by the cyber incident.

This is in contrast to the cyber attack on Medibank Private Limited (ASX: MPL) in October last year. The Medibank share price fell materially, as demonstrated in the chart below, when it returned to trading following the attack.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

This bombshell for ASX healthcare shares could hit 6 million Australians

This could have a large impact.

Read more »

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

2 ASX healthcare shares having a stellar run today

The ASX healthcare sector is down today but these two stocks are bucking the trend.

Read more »

A company manager presents the ASX company earnings report to shareholders at an AGM.
Healthcare Shares

Why this $13 billion ASX 200 healthcare stock is surging today

A change in sentiment for the healthcare player.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

This ASX 200 stock hit a 52-week low and a top broker thinks it can rebound

Patient investors may see this stock make a pleasing recovery.

Read more »

A couple smile as they look at a pregnancy test.
Healthcare Shares

Why this sold-off ASX healthcare share could be an exciting dividend buy

This could be a healthy stock for dividends.

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
Healthcare Shares

Is CSL the best ASX 100 share to buy now?

Bell Potter has good things to say about this blue chip star.

Read more »

Scientists in a laboratory look at a computer screen with anticipation on their faces representing a potential change in the performance of ASX biotech shares in FY23
Healthcare Shares

Down 10% in a month, are CSL shares feeling the sting of a potential disruption?

Brokers are still bullish.

Read more »

One girl leapfrogs over her friend's back.
Healthcare Shares

Doubled in a year! Does this booming ASX share have another 24% upside?

Let's take a look.

Read more »