(Reuters) -Shares of TechnologyOne are headed for their worst day in nearly 23 years on Tuesday after reporting annual profit short of analyst expectations, as its shift to a software-as-a-service delivery model weighed on near-term margins.

The Australian enterprise software provider’s stock sank 16.6% to trade at A$16.68 per share, on track for its weakest session since late November 2002, as of 0250 GMT. The company’s shares were the biggest laggard on the benchmark index, which is down 1.7%.

The Brisbane-headquartered firm posted a rise in annual profit after tax to A$137.6 million ($89.29 million) for the fiscal year ending September 30, falling short of the A$139.9 million consensus from Visible Alpha.

The company’s shift to SaaS+, which bundles enterprise software solutions and i

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