Jade signals downturn for 2009 financial year

LATEST NEWS

Computerworld is New Zealand's only specialised information systems fortnightly.
Subscribe now for $100 (23 issues) and save more than 37% off the cover price!

Get the latest news from Computerworld delivered via email.
Sign up now

Impact of financial crisis is being felt in key markets

By Randal Jackson | Wellington | Wednesday, 19 August, 2009

Christchurch-based Jade Software's $1.77 million profit before tax for the half year to June 30 is up by 29 percent compared with the same period last year. However, the company is forecasting results for the full financial year to be down on 2008.

The company says its European logistics customers have reported up to 60 percent reduction in cargo movements and that, coupled with unprecedented conditions in banking, finance and insurance, is expected to be reflected in the full year results.

“Despite a good performance this half year, Jade is not immune to the adverse global conditions, and we expect the result for the full year will be down on 2008,” says chief executive Craig Richardson. “That said, the company is well positioned to weather the economic downturn and to take advantage of the recovery in 2010."

Richardson says it was inevitable Jade's customers would cut discretionary operating and capital spending to weather the crisis. He says Jade has retained all of its key customers and is managing its costs to remain profitable.

Total revenue for the half year was up, at $24.2 million compared with $23.6 million for the same period in 2008.

For the full 2008 year, Jade reported operating revenue of $50.8 million, compared with $42 million in 2007. In 2008, 20 percent of revenue came from logistics and 25 percent from the financial services sector.