Annual results: Jade Software Corporation invests to grow
The 2015 year saw Jade expand its global presence, improve revenue in digital and JADETM technologies businesses, and lead times in the logistics sector lengthen.
Managing Director and CEO David Lindsay says that the company’s overall revenue performance has been resilient.
“Pleasingly our diversification strategy has meant that the company hasn’t been as affected by the significant increase in sales lead times in the global freight sector – moving from 6-12 months to 12-24 months. In contrast, other parts of the business have grown, resulting in revenues that were even year-on-year.
“This year, with the support of the board, Jade invested in market development and capability across the globe. We continue to execute our long-term strategy, preparing for future growth and improved profitability in 2017.
“As well as opening new offices in Jakarta, and Rotterdam, placing Jade’s Logistics product, Master Terminal and its people in key international markets where major spending on ports infrastructure is underway, we also invested in our digital and technologies businesses.”
- Expanded global footprint with a new office in Jakarta and Rotterdam. Plans for more satellite offices in new markets to support future growth, and more people in established international markets
- Annual revenue $29.8m (2014: $30.0m)
- Net loss before income tax (NLAT) -$3.2m, (2014: -$1.0m) following investment in market development and capability
- 8% growth in Digital as demand for digital business solutions grows
- Rejuvenated legacy enterprise software business
- Strong sales pipeline in all lines of business for 2016 with improved financial performance expected
- Continued investment in innovation and R&D (14% of revenue)
Following impressive growth in 2014, Jade Logistics was impacted by a slowdown in the global freight market. Lead times which were previously 6 -12 months have doubled to an unprecedented 12-24 months.
“It has been a tough year for sales - as uncertainty has caused major delays in IT procurement for logistics - but a good year for implementation, support and product development, with a pleasing pipeline of future opportunities.
“With major implementations underway or about to commence, we have hired more people to support the work already started and sales that were secured early in 2016.
“As the fastest growing mixed cargo solution in the market, Jade Logistics is making impressive progress, and this gives us the confidence to invest for our future.”
Jade’s Digital business has become one of New Zealand’s foremost providers of digital transformation and enterprise modernisation solutions. Revenue grew by 8%, off the back of the division’s blue chip customer base and increased demand.
Lindsay says the market shift from mobile applications to full digital business solutions, requiring an emphasis in systems and data integration, is a positive development for Jade.
“Jade built its business in systems and data integration, and it’s an area where we have a lot of expertise, amassed over 30 years. The demand for full digital business solutions is growing strongly. We see good potential to win new customers both here and in Australia and grow revenue from current customers as we build and strengthen this trans-Tasman business.”
Revenue was stable, with the majority reinvested into software development, supplemented by industry grants. Jade continues to invest heavily in R&D to support the JADE platform, ensuring its more than 45 partners have the ability to support clients operating across a range of industries.
After a year of consolidation and investment, Jade is looking forward to improved financial performance in 2016, says Lindsay.
“We will continue to strive for revenue growth and accelerate new product development, which means Jade will incur further short term losses as we build towards improved profitability in 2017.
“Jade and its shareholders are realistic about the steps and time that is required to develop new products and markets to secure long term growth. It’s with this support that we are confident about the outlook for the business.”