TechnologyOne share price rises on cyber incident update

Here's the latest on TechnologyOne's investigation.

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".

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

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.

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