Jade posts $4.3m earnings drop

Christchurch-based Jade Software today reported a $4.3 million fall in annual earnings before interest and tax to $800,000.

Operating revenue fell 7.8 percent to $46.2m in the year to December 31 from the previous year. Earnings before interest, tax, depreciation and amortisation fell 35 percent to $7.2m.

Chairwoman Ruth Richardson said Jade could not hope to have escaped the impact of one of the most hostile trading environments in generations.

Managing director Craig Richardson said Jade had remained profitable, expanded its customer base and was putting the finishing touches on its latest product called JOOB.

JOOB, an innovative new high performance data management product on the Microsoft .NET platform, would be made available to key partners in July, with the product launched globally in the fourth quarter of this year.

The company's key markets were severely affected by the economic downturn in the second half and earnings were adversely impacted by the strength of the New Zealand dollar. The company earns more than 65 percent of its revenue offshore.

Mr Richardson said the Jade Group was continuing its transition to a new high-value business model.
Jade generated $8.7m in cash from operations in 2009 and maintained its investment in new product development at 16 percent of turnover with a focus completing development of JOOB.

- NZPA