TM-- Hope you bought those JDEC calls I told you to buy!!!!
Company Press Release
J.D. Edwards Reports Sales and Earnings for the Second Quarter and Six Months Ended April 30, 1998
Net Income Rises 154% on License Fee Revenue Growth of 49%
DENVER--(BUSINESS WIRE)--May 28, 1998--J.D. Edwards & Company (NASDAQ:JDEC - news) today reported financial results for the quarter and six months ended April 30, 1998.
Revenue for the second quarter of fiscal 1998 increased 43% to $209.0 million, compared to revenue of $145.9 million in the second quarter of fiscal 1997. License fee revenue was $76.4 million, up 49% over the second quarter of fiscal 1997. Services revenue increased 40% to $132.6 million, from $94.7 million. Net income for the quarter increased 154% to $12.3 million, or $0.11 per diluted share, compared to net income of $4.8 million, or $0.05 per diluted share, in the second quarter of fiscal 1997.
Revenue for the six months ended April 30, 1998 increased 44% to $387.2 million, from $268.7 million in the same period of fiscal 1997. License fee revenue increased 57% to $144.4 million, from $92.1 million in the first six months of fiscal 1997. Services revenue increased 37% to $242.8 million, from $176.6 million. Net income increased 161% to $18.8 million, or $0.17 per diluted share, compared to net income of $7.2 million, or $0.08 per diluted share, during the comparable period in fiscal 1997. During the first six months of fiscal 1998, the company generated 35% of revenues from international operations, demonstrating its global commitment.
Quarter Highlights
Since the beginning of the second quarter, J.D. Edwards has
signed transactions with over 150 new customers bringing the total
number of customers to over 4,500, enhanced OneWorld(TM) functionality,
and formed many new strategic partnerships, including:
-- The signing of new customers including Bassett Furniture
Industries, Inc., NordicTrack Inc., Autoliv ASP, AFC Cable
Systems, City of Orlando, Mail-Well Envelope Company, and SE
Johnson Companies. In addition, DaeWoo Motors in Puerto Rico;
Magyar Aluminum in Hungary; and Employee Solutions, Inc. in
Phoenix, Arizona went live on OneWorld(TM) in less than four months.
-- The global availability of its supply chain initiative and
solution, J.D. Edwards SCOREx, (Supply Chain Optimization and
Real-Time Extended Execution). J.D. Edwards SCOREx is a flexible,
integrated solution which enables organizations to execute
dynamic customer-centric supply chains. This includes new
functionality in OneWorld(TM) for advanced transportation management,
advanced warehouse management, and enhanced order management.
-- The availability of human resource management solutions for
OneWorld(TM) customers. New functionality in OneWorld(TM) integrates
organizations' core business processes and workflow with human
resources applications, enabling customers to improve employee
data management and more easily execute "self-service" functions.
J.D. Edwards also added to its strong network of strategic
alliances with human resources vendors, such as, Criterion Inc.,
Personic Software Inc., and CareerBuilder.
-- The availability of a standard integration between J.D. Edwards
SCOREx and SynQuest Manufacturing Manager, a component of the
SynQuest Supply Chain Optimization Series that includes
integrated advanced planning and scheduling with execution.
-- An agreement with Manugistics, Inc. (NASDAQ:MANU - news) to deliver an
integrated supply chain optimization, management and execution
solution. Manugistics and J.D. Edwards will combine their
expertise to provide a comprehensive solution for planning,
manufacturing, logistics and financial management capabilities to
manage diverse global operations.
-- The expansion of the Company's Product Alliance Program and
several new product alliance agreements. New product alliances
include Hyperion to provide multi-company consolidations and
high-end budgeting solutions; Cerg Finance to provide cash and
treasury management functionality; and Agile Software to
integrate the Agile product data management software with J.D.
Edwards' ERP systems.
-- A global alliance with Arthur Andersen to jointly market
solutions to the middle market.
About J.D. Edwards
J.D. Edwards develops, markets and supports multinational,
integrated enterprise software for distribution, finance, human
resources, manufacturing and supply chain management. The Company's
enterprise software operates in multiple computing environments,
including IBM AS/400(R), UNIX(R), Windows NT(R) and the Internet.
Founded in 1977, J.D. Edwards is headquartered in Denver and recorded
fiscal 1997 revenues of $647.8 million. J.D. Edwards' OneWorld(TM) is a
network-centric, multinational software package that enables customers
to change technology or business practices while reducing costs and
business interruptions. Additional information about J.D. Edwards'
product offerings can be obtained by contacting the company at
1-800-727-5333 or via the Internet at jdedwards.com.
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NOTE TO EDITORS: J.D. Edwards is a registered trademark of J.D.
Edwards & Company. The names of all other product and services of J.D.
Edwards used herein are trademarks and registered trademarks of J.D.
Edwards World Source Company. The historical results stated above are
not necessarily indicative of the results of any future period.
J.D. EDWARDS & COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
1997 1998 1997 1998
Revenue:
License fees $ 51,129 $ 76,424 $ 92,063 $144,414
Services 94,725 132,567 176,612 242,833
Total revenue 145,854 208,991 268,675 387,247
Costs and expenses:
Cost of license fees 9,386 8,185 17,084 19,304
Cost of services 57,813 84,559 109,306 155,147
Sales and marketing 39,029 61,440 73,735 111,861
General and administrative 16,315 18,211 31,087 36,650
Research and development 14,391 20,640 24,533 40,578
Total costs and expenses 136,934 193,035 255,745 363,540
Operating income 8,920 15,956 12,930 23,707
Other income (expense):
Interest income 70 3,749 163 7,408
Interest expense (225) (119) (500) (664)
Foreign currency losses
and other, net (1,023) (10) (1,154) (675)
Income before income taxes 7,742 19,576 11,439 29,776
Provision for income taxes 2,893 7,243 4,261 11,017
Net income $ 4,849 $ 12,333 $ 7,178 $ 18,759
Net income per common share:
Basic $ .06 $ .13 $ .09 $ .20
Diluted $ .05 $ .11 $ .08 $ .17
Shares used in computing
per share amounts:
Basic 79,112 96,975 79,102 95,194
Diluted 95,544 109,525 94,532 108,821
J.D. EDWARDS & COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
October 31, April 30,
1997 1998
ASSETS
Current assets:
Cash and cash equivalents $224,437 $200,120
Short-term investments 30,464 40,807
Accounts receivable, net of allowance for
doubtful accounts of $9,800 at October 31,
1997 and $12,100 at April 30, 1998,
respectively 174,532 224,310
Prepaid and other current assets 21,436 26,986
Total current assets 450,869 492,223
Long-term investments 108,096 193,154
Property and equipment, net 55,705 52,384
Software development costs, net 11,879 8,637
Non-current portion of deferred income taxes 10,646 50,611
Deposits and other assets 5,842 7,448
------- -------
$643,037 $804,457
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 34,915 $ 37,191
Unearned revenue and customer deposits 67,104 129,244
Accrued liabilities 110,565 118,812
Total current liabilities 212,584 285,247
Unearned revenue, net of current portion,
and other 33,592 33,322
Total liabilities 246,176 318,569
Stockholders' equity:
Preferred stock, $.001 par value;
5,000,000 shares authorized; none
outstanding - -
Common stock, $.001 par value;
300,000,000 shares authorized; 92,822,186
and 99,588,046 issued and outstanding as of
October 31, 1997 and April 30, 1998,
respectively 93 100
Additional paid-in capital 294,278 365,761
Retained earnings 102,856 121,615
Cumulative translation adjustments and
other, net (366) (1,588)
Total stockholders' equity 396,861 485,888
-------- --------
$643,037 $804,457
--------------------------------------------------------------------------------
Contact:
J.D. Edwards
Chris Hardman, 303/334-4662 (Public Relations)
chris_hardman@jdedwards.com
or
Etta West, 303/334-4772 (Investor Relations)
etta_west@jdedwards.com
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