Shares of TechnologyOne Ltd (ASX: TNE) have been halted as the Australian tech company responds to a cyber attack. Several other Australian businesses, including Medibank Private Limited, Optus, Latitude Group Holdings Ltd, and IPH Ltd, have also been targeted recently. TechnologyOne, an enterprise resource planning (ERP) software provider, reported an unauthorized third-party accessing its internal Microsoft 365 back-office system.
The company has taken immediate action, initiating an investigation, engaging third-party experts, and isolating affected systems. While its customer-facing software has not been impacted, TechnologyOne remains committed to compliance and will update affected parties on the safety of their data once the investigation progresses.
The trading halt for TechnologyOne shares will continue until a further announcement by the company or the start of normal trading on May 12, 2023. The impact on the company’s stock price will depend on the extent of the cyber incident and its consequences.
Similar incidents have led to significant drops in share prices, as seen with Medibank, but subsequent recovery has been possible. TechnologyOne’s long-term outlook will be determined by the details and effects of the cyber attack. Prior to the incident, the company had experienced strong growth in revenue and profit, leading to a nearly 50% increase in its share price over the past year.
As TechnologyOne works to address the cyber attack and safeguard its systems, the market and stakeholders await further updates on the situation.
