TechnologyOne Ltd (ASX: TNE) shares have been halted after the S&P/ASX 200 Index (ASX: XJO) tech stock revealed that it is responding to a cyber attack.
There have been a number of cyber attacks on Australian businesses in recent times, including Medibank Private Limited (ASX: MPL), Optus, Latitude Group Holdings Ltd (ASX: LFS), and IPH Ltd (ASX: IPH).
For readers who don't know, TechnologyOne is an enterprise resource planning (ERP) software business for organisations. Among its customers are the University of Melbourne, the Australian Bureau of Statistics (ABS), Noosa Council, and Brookfield.
Cyber attack on TechnologyOne
The ASX 200 tech stock said it has detected "an unauthorised third-party acted illegally to access its internal Microsoft 365 back-office system".
It emphasised that its customer-facing software as a service (SaaS) platform is not connected to the Microsoft 365 system and therefore has not been impacted.
But, the company has "acted with urgency" to investigate the issue, including initiating its cyber response strategy, appointing third-party experts, and isolating affected systems.
TechnologyOne has reported the incident to the relevant authorities and continues to "not only comply but go beyond its regulatory obligations", it says.
The business said in its statement to the ASX that once the investigation is "further progressed", it will be in a position to contact those who "may be affected with them on the ongoing safety of their data".
The ASX 200 stock apologised to impacted individuals for any concern this incident may cause. It will provide further updates through the ASX and on its website as they become available.
How long will TechnologyOne shares remain halted?
The business has requested that the trading halt continue until the earlier of a further announcement by the company or the start of normal trading on Friday 12 May 2023.
What could this mean for the ASX 200 stock?
Looking at the hack effect on the Medibank share price, it caused a sizeable drop when trading resumed. However, the private health insurer has now recovered amid return policyholder growth.
But the reaction for the TechnologyOne share price could depend on the details and what the impacts of the cyber incident are.
Time will tell how much of a long-term impact this has on the business. Prior to this, the ASX 200 stock had risen by close to 50% over the last 12 months, with strong growth of revenue and profit in its recent financial results.
