Jade Software Corporation Annual Result

JADE SOFTWARE CORPORATION NEWS RELEASE

Christchurch, 6 March 2007

Annual Result announcement

Revenue growth from existing and new customers, restructuring lines of business and cost control enabled Jade Software Corporation Limited (Jade) to report record profits in its 2006 Annual Report.

In announcing a 48 percent increase in EBITDA (from $8.3 million in 2005 to $12.3 million in 2006) and a 145 percent increase in net profit after tax (from $2.9 million to $7.1 million) for the year ended 31 December 2006, Managing Director Dr Rod Carr noted that direct comparison with previous period results was difficult as a result of the change in business structure of Jade’s Health and Independent Software Vendor lines of business.

New Zealand remained Jade’s single largest source of revenue, however the majority of Jade’s revenue again came from off shore, making Jade one of New Zealand’s top export earners from the sale of services. While 57 percent of Jade’s total revenue was derived offshore, around one in four of the top 100 IT users in New Zealand also have a JADE system supporting their business.

“How ever you measure it, Jade is continuing to grow; the number of customers and users, total revenue, and staff are all increasing. 2006 was a year in which growth accelerated.” Dr. Carr said.

Underpinning this expansion is Jade’s now strong balance sheet with cash on hand of
$21 million and substantial and growing shareholders’ equity.

In 2006 Jade also increased the amount of effort going into the research, development, testing and support of its core technology by 11 percent to 16 percent of effort, while reducing effort spent on corporate overheads by 12 percent. Efficiency improvements and cost control enabled Jade to serve its customers on lower margins delivering more value for money.

Decisions over recent years to invest in inter-operability for JAVA and .NET have made JADE an open platform, while preserving the simplicity, stability and productivity of an integrated development environment. The upcoming release of JADE 6.2 mid year will further enhance the efficiency of developers and those responsible for managing systems once deployed.

“Our emphasis on increasing inter-operability, proven capability to solve problems involving complex and changing business rules and our focus on key markets has underpinned sustainable profitable growth.”

In 2006 Jade announced that a number of major projects will Go Live in the ports, logistics and supply chain management segment of its business.

Earlier this year Jade also signed an exclusive agreement with an Australian Government Agency enabling the commercialisation of a state of the art security intelligence system developed for them by Jade. The multi lingual system, already deployed in 40 sites across 11 countries, appears to meet a significant need in both Europe and North America.

“Not only is JADE a powerful development tool but with voluntary staff turnover below 9 percent and average length of service in excess of 10 years, the stability and experience of the Jade team makes them highly productive. Our order book is full for the next six months and the qualified prospects in the pipeline are at record levels,” Dr Carr said.

“Jade are forecasting increased revenues and some modest expansion in margins on core business in 2007. We continue to grow organically but seek further strategic partners who have domain knowledge, existing customers or legacy systems where Jade’s technology and experience are complementary,” Dr Carr said.

Last year Jade announced that they were actively seeking to acquire software companies in similar sectors to supplement and accelerate organic growth.

ENDS

ABOUT JADE SOFTWARE CORPORATION
Established in 1978, Jade Software Corporation is an information technology research and development organisation, with more than 25 years' experience supplying enterprise scale software solutions to large businesses and government organisations. The company produces; JADE - an integrated computing platform, products for the healthcare, higher education, HR and payroll, ports and shipping sectors, and also provides custom development services and systems management. A network of distributors and channel partners sells the company’s products and services to companies throughout Asia-Pacific, Europe and North America.
A privately owned New Zealand company, Jade employs around 250 people throughout New Zealand, Australia, the United States and the United Kingdom. The company's Managing Director is Dr Rod Carr.

For more information visit: www.jadeworld.com

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