Jade Software has reported a net profit of just over $1 million for the first half of this calendar year, in stark contrast to the $2.4 million loss for the same period in 2004.
Revenue for the period has improved by 9% while expenses have been trimmed by 8%, says the company.
Jade's managing director, Rod Carr, says the result demonstrates that "Jade has made significant progress towards achieving sustainable profitability and is now generating positive cash flow from operations, investing and financing activities”.
Carr says he expects revenue to continue "at existing levels" for the rest of the year.
In 2003 Jade reported its worst annual result, a $15.6 million loss, which resulted in 90 staff losing their jobs as costs were cut by 25%.
During 2004, Jade secured new capital of $25 million from Skipton Building Society and USA Health Investors. Founder Gil Simpson's share of the business has reduced from 90% to around 10% as new investment, mostly from offshore, has been brought in.
Most of the increase in revenue has been from an increase in demand from Jade's existing offshore customer base. Locally, Jade has fared less well, losing out on a Ministry of Social Development client management system that will eventually be worth almost $80 million. The MSD's original systems were built using LINC, the forerunner to Jade's current solution, and the Christchurch-based company was widely expected to win the contract.