Investors will be familiar with some of the largest ASX-listed technology companies, including the likes of Computershare (ASX: CPU) and IRESS Ltd (ASX: IIN).
But with trailing P/E ratios of 32 and 46 respectively, (according to Google Finance), you might want some cheaper ideas, with plenty of potential for growth.
Here are three small cap tech companies that could give your portfolio a boost…
Legend Corporation Limited (ASX: LGD)
Legend provides a range of products for the IT and electrical industry, including various types of cabling and accessories including fibre optic, tools, connectors, integrated circuits, memory modules, as well as products for Australia's defence industry. Currently trading on a prospective P/E ratio of less than 10, and paying a fully franked dividend yield of over 6%, Legend looks cheap.
Altium Limited (ASX: ALU)
Altium sells software which is used to design electronic products, mainly printed circuit boards. In the quarter ending March 2014, Altium reported 16% increase in revenues on the back of strong growth in Europe and China, and a growing cash balance of US$19.3 million. Commsec is predicting growth of 109% and 35% in earnings per share in the 2014 and 2015 financial years respectively. As a bonus, shareholders are being paid a dividend yield of over 5% (although it is un-franked).
Netcomm Wireless Ltd (ASX: NTC)
Up 34% since I highlighted the stock in this article, Netcomm Wireless is moving its business from making routers and modems to producing machine-to-machine (M2M) devices. Having already signed deals with some US resellers, Netcomm appears to have a bright future ahead. With shares having pulled back from their recent high of 80 cents to trade at 60 cents, Netcomm could be a bargain at this price.
If these stocks are not your cup of tea, here's two ASX stocks that Warren Buffett would love…
