J.D. Edwards Reports Sales and Earnings For the Fourth Quarter and Fiscal Year Ended October 31, 1999
License Fee Revenue Grows 35% Over Prior Quarter
DENVER, Dec. 1 /PRNewswire/ -- J.D. Edwards & Company (Nasdaq: JDEC) today
reported financial results for the fourth quarter and fiscal year ended
October 31, 1999.
Revenue for the fourth quarter of fiscal 1999 was $257.6 million, compared
to revenue of $307.1 million in the fourth quarter of fiscal 1998. Net income
for the quarter, excluding amortization of intangible assets, was
$3.8 million, or $0.03 per diluted share, compared with net income of
$37.7 million, or $0.34 per diluted share, in the same period last year. Net
income for the quarter, including amortization of intangibles, was $130,000,
or $0.00 per diluted share. License fee revenue was $101.0 million, compared
to license fee revenue of $143.5 million in the fourth quarter of fiscal 1998.
Services revenue was $156.6 million, compared to $163.6 million reported in
the same period last year.
For the year ended October 31, 1999, revenue reached $944.2 million, up
slightly from revenue of $934.0 million for the year ended October 31, 1998.
The net loss for the year ended October 31, 1999, excluding
acquisition-related costs, was $7.9 million, or $0.07 per diluted share,
compared to net income of $74.5 million, or $0.68 per diluted share, for the
year ended October 31, 1998. The net loss for the year, including
acquisition-related costs, was $39.2 million, or $0.37 per diluted share.
Operating Highlights
J.D. Edwards returned to profitability this quarter on strong sales of its
business application software solutions. These agile, interoperable
e-business solutions enable customers to quickly put their ideas into action.
The Company delivered additional functionality and enhanced its e-business
capability in the front office, collaborative supply chain management, and
e-procurement areas. J.D. Edwards made significant investments in the fourth
quarter and throughout the fiscal year that position the Company as the speed
and agility leader in e-business. Important announcements and milestones
achieved this quarter include:
-- Strong growth in license fee revenue. License fee revenue grew 35%
from the third fiscal quarter. License agreements were signed with customers
including Graphic Packaging Corporation, Inland Paperboard & Packaging, Inc.,
United Technologies-Hamilton Sunstrand Division, Praxair, Inc., Johnson Wax
Professional, Standard Motor Products, Tennessee Farmers Cooperative, Chateau
Communities, Inc., Suiza Foods Corporation and Wausau Paper Mills Company.
The company now has over 5,500 customers worldwide.
-- Delivery of ActivEra E-Business Portal and other e-business
applications in the latest release of OneWorld(TM). J.D. Edwards announced
the global availability of its ActivEra Portal and the latest release of its
ActivEra(TM) tools and products for e-business. The ActivEra Portal is a
web-based interface to J.D. Edwards applications as well as outside
information, services and communities. It provides customers with a
user-friendly window to the tools they need to optimize their business
relationships, put their ideas into action and transform their organization
into a virtual enterprise that collaborates with suppliers, customers and
partners via the web. The Company also delivered additional customer,
supplier and employee self-service applications that will allow OneWorld
customers to improve efficiencies across various processes.
-- Significant number of customers going live on OneWorld. The Company
reached a milestone in the number of live OneWorld customers, passing the 600
customer mark. More than 200 customers went live in the quarter including
Amherst Technologies, LLC, Bassett Furniture Industries, Inc., McKessonHBOC
Medical Group, Champion Laboratories Inc., Conbraco Industries, Inc., Center
of Excellence, L.L.C., and ToyTime.com.
-- Expansion of supply chain management capabilities. J.D. Edwards
expanded its supply chain solution with the integration of OneWorld and the
Numetrix supply chain planning system. The combined J.D. Edwards/Numetrix
solution offers the most comprehensive line of integrated planning and
execution software available in the market today. The solution gives the
Company a leadership position in the market as "brick and mortar" companies
evolve into e-business companies and want real-time supply chain collaboration
with tightly integrated back-office applications. The Company also announced
availability of Numetrix/xtr@ 2.0 with enhancements in security and
integration capabilities necessary for customers to extend planning
information and tools throughout their partner network. The new version of
the product has enhanced features that leverage the speed and cost
effectiveness of the Internet allowing for optimized, enterprise-wide
collaboration among suppliers, manufacturers, distributors and customers in a
secure environment.
-- Appointment of Edward Sitarski to Vice President of Supply Chain
Planning. Mr. Sitarski will lead the Company's supply chain strategy and be
responsible for continuing the development of stand-alone supply chain
solutions and the integration of Numetrix supply chain planning technology
into J.D. Edwards OneWorld enterprise software suites.
-- Expansion of customer relationship management solution. J.D. Edwards
delivered the integration of OneWorld with Siebel Sales Enterprise. This
integrated solution delivers a robust sales and marketing application within
the agile J.D. Edwards e-business platform. This customer relationship
management solution enables companies to personalize and extend business
relationships by synchronizing traditional enterprise systems with Internet
business models.
-- Enhancement of e-procurement solution. J.D. Edwards integrated
OneWorld and WorldSoftware with the Ariba(R) ORMS(TM) application. The
integrated solution enables end-users to execute strategic sourcing programs
and improve efficiency throughout the entire procurement process from
requisition to payment.
About J.D. Edwards
J.D. Edwards provides Idea to Action(TM) software for managing the virtual
enterprise and supply chain. The Company's integrated applications deliver
agile e-business solutions that give customers control over their front
office, manufacturing, logistics/distribution, human resources and finance
processes for the consumer, industrial and services industries. J.D. Edwards
enables Idea to Action with ActivEra(TM) a collection of tools and
technologies that extend J.D. Edwards OneWorld(TM) and WorldSoftware(TM)
enterprise business software and its Numetrix supply chain planning solutions.
ActivEra allows customers to change their software quickly and easily during
and after implementation. The Company's solutions operate in multiple
computing environments, including Windows NT(R), UNIX(R) and OS/400(R), and
are Java(TM) and HTML enabled.
Founded in 1977, J.D. Edwards is headquartered in Denver, Colorado.
Additional information can be obtained by contacting the Company at
1-800-727-5333 or via the Internet at www.jdedwards.com.
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 OPERATIONS
(in thousands, except per share amounts)
Three Months Ended
October 31, Fiscal Year Ended
(unaudited) October 31,
1998 1999 1998 1999
Revenue:
License fees $143,545 $101,065 $386,081 $312,817
Services 163,588 156,569 547,901 631,414
Total revenue 307,133 257,634 933,982 944,231
Costs and expenses:
Cost of license fees 12,901 9,665 43,404 29,882
Cost of services 103,259 100,448 349,689 408,293
Sales and marketing 81,205 92,243 261,400 334,201
General and
administrative 26,161 23,132 83,450 94,241
Research and
development 26,424 30,399 89,401 109,206
Subtotal 249,950 255,887 827,344 975,823
Income (loss) from
operations excluding
acquired in-process
research and
development and
amortization of
intangibles 57,183 1,747 106,638 (31,592)
Amortization of
acquired intangibles -- 5,904 -- 9,488
Acquired in-process
research and
development -- -- -- 26,141
Operating income
(loss) 57,183 (4,157) 106,638 (67,221)
Other income (expense):
Interest income 3,916 3,883 15,294 19,324
Foreign currency
losses and other, net (1,327) 480 (3,729) (268)
Income (loss) before
income taxes 59,772 206 118,203 (48,165)
Provision for
(benefit from)
income taxes 22,116 76 43,735 (8,941)
Net income (loss) $37,656 $130 $74,468 $(39,224)
Net income (loss) per common share:
Basic -
Excluding acquired
in-process research
and Development and
amortization of
intangibles $0.37 $0.04 $0.76 $(0.07)
Acquired in-process
research and development
and amortization of
intangibles $-- $ (0.04) $-- $(0.30)
Net income (loss)
per share $0.37 $0.00 $0.76 $(0.37)
Diluted -(A)
Excluding acquired
in-process research and
development and
amortization of
intangibles $0.34 $0.03 $0.68 $(0.07)
Acquired in-process
research and development
and amortization of
intangibles $-- $(0.03) $-- $(0.30)
Net income (loss)
per share $0.34 $(0.00) $0.68 $(0.37)
Shares used in computing
per share amounts:
Basic 102,145 106,889 98,264 105,378
Diluted (A) 111,466 112,194 109,993 105,378
J.D. EDWARDS & COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS, continued
(in thousands, except per share amounts)
The impact of the charges for acquired in-process research and development
("IPR&D") costs and the amortization of acquired intangibles on net income
(loss) and diluted net loss per share is as follows:
Three Months Ended
October 31, 1999 Fiscal Year Ended
(unaudited) October 31, 1999
Before After
Before After IPR&D and IPR&D and
amortization amortization amortization amortization
of acquired of acquired of acquired of acquired
intangibles intangibles intangibles intangibles
Income (loss) from
operations $1,747 $(4,157) $(31,592) $(67,221)
Other income, net 4,363 4,363 19,056 19,056
Provision for
(benefit from)
income taxes 2,262 76 (4,638) (8,941)
Net income (loss) $3,848 $130 $(7,898) $(39,224)
Net income (loss)
per share (A):
Basic $0.04 $0.00 $(0.07) $(0.37)
Diluted $0.03 $0.00 $(0.07) $(0.37)
Shares used in
computing net
income (loss)
per share:
Basic 106,889 106,889 105,378 105,378
Diluted 112,194 112,194 105,378 105,378
(A) Common stock equivalents such as stock options are not included in the
computation of the diluted loss per share for the fiscal year ended
October 31, 1999. The effect of including common stock equivalents would
be to decrease the reported loss per share, which is not appropriate under
generally accepted accounting principles.
J.D. EDWARDS & COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
ASSETS
October 31,
1998 1999
Current assets:
Cash and cash
equivalents $183,115 $113,341
Short-term investments 28,667 62,546
Accounts receivable,
net of allowance
for doubtful
accounts of $12,900 and
12,000 at October 31,
1998 and 1999,
respectively 265,704 236,216
Other current assets 32,823 34,936
Total current assets 510,309 447,039
Long-term investments 322,527 246,564
Property and equipment, net 60,689 86,332
Non-current portion of
deferred income taxes 43,658 82,572
Other assets, net 13,290 78,021
950,473 $940,528
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $60,366 $46,004
Unearned revenue and
customer deposits 121,092 114,865
Accrued liabilities 157,473 162,635
Total current
liabilities 338,931 323,504
Unearned revenue, net of
current portion,
and other 27,546 24,304
Total liabilities 366,477 347,808
Stockholders' equity:
Preferred stock, $.001
par value; 5,000,000
shares authorized;
none outstanding -- --
Common stock, $.001 par value;
300,000,000 shares authorized;
102,681,608 and 107,109,494
issued and outstanding as of
October 31, 1998 and
1999, respectively 103 107
Additional paid-in capital 406,886 456,387
Deferred compensation (677) (283)
Retained earnings 177,324 138,100
Accumulated other
comprehensive income:
Foreign currency translation
adjustments 360 (1,591)
Total stockholders'
equity 583,996 592,720
950,473 $940,528
SOURCE J.D. Edwards & Company
CO: J.D. Edwards & Company
ST: Colorado
IN: CPR FIN
SU: ERN
12/01/1999 16:05 EST prnewswire.com |
