Jade Software Corporation – Interim Result

Jade Software Corporation – Interim Result

Jade Software Corporation Ltd (Jade) announced record revenues from the sale of its software and related services during the first half of 2006. For the six months to 30 June 2006, revenue reached $24.663 million, up 34 per cent from $18.337 million achieved in the first half of 2005. This is the third consecutive year in which revenue has increased.

Along with revenue growth from existing customers, Jade has won new name customers for its development technology, its core applications and services. Disproportionately growth has come from overseas, especially the United Kingdom, with 60 per cent of first half revenue coming from outside New Zealand.

Not only has the company established a track record of revenue growth, but profitability continues to improve with EBITDA for the first half 10 per cent ahead of the comparable period last year at $4.4 million. This excluded one off gains arising from major transactions.

The company’s revenue and profit growth, coupled with its strong cash flow and balance sheet mean it is well placed to focus on product and market development, whether through organic growth or by acquisitions.

Dr. Rod Carr said, “The emergence of web services and standards have made our technology highly interoperable with more commonly used databases and applications developed in other languages. This has materially increased customers’ willingness to adopt JADE. As JADE proves to be a powerful solution to complex problems, any concerns about its uniqueness are overcome by its interoperability and adherence to standards.

“Our strongest growth has been in developing solutions where there is not a product or where the time and cost of adapting a product makes our proposition compelling. Financial services and logistics are the two sectors showing the strongest forward work commitments. For example the total value of residential mortgages administered on JADE systems in the UK exceeds the total value of all the residential mortgages on issue by registered banks in New Zealand. JADE systems track thousands of train, ship and container movements a day and more tertiary students are enrolled on JADE systems than on any other single system in New Zealand. Paid JADE process licenses on issue grew 30 per cent to around 26,000 in the past 12 months.”

Jade has also been undertaking some selective recruitment over the past six months especially among recent graduates or those nearing completion of their studies in computer science and programming.

Of the 100 largest IT users in New Zealand identified by MIS Magazine in its July 2006 edition,
Dr. Carr noted that 2 of the top 5, 4 of the top 10, 7 of the top 20 and 14 of the top 50 IT users in New Zealand have a LINC or JADE system running somewhere in their organisation. From a sound technological, financial and customer base Jade is accelerating its rate of sustainable profitable growth.

ENDS