J.D. Edwards Reports Strong License Revenue Growth In The First Fiscal Quarter 2000
ActivEra Solutions Drive License Revenue Growth
DENVER, Feb. 23 /PRNewswire/ -- J.D. Edwards & Company (Nasdaq: JDEC)
today reported financial results for the first fiscal quarter ended January
31, 2000.
Revenue for the first quarter of fiscal 2000 was $231.7 million, compared
to revenue of $222.9 million in the first quarter of fiscal 1999. Net income
for the quarter, excluding amortization of acquired intangible assets was
$3.6 million, or $0.03 per diluted share, compared with net income of
$4.3 million, or $0.04 per diluted share, in the same period last year. Net
loss for the quarter, including amortization of acquired intangible assets,
was $152,000 or $0.00 per diluted share. License fee revenue grew 20% over
the same period last year, to $83.3 million. Services revenue was
$148.4 million, compared to $153.3 million in the first quarter of fiscal
1999.
Operating Highlights
The results in the quarter were driven by sales of the Company's complete
end-to-end, e-Business solutions, including sales of products from strategic
partners in areas such as e-procurement. ActivEra Solutions are designed to
enable customers to cut costs, increase sales, and improve asset management.
The Company expanded its solutions in high-growth areas including trading
communities, e-procurement, and customer relationship management. Important
announcements and milestones in the first quarter include:
-- Emerging leadership in trading communities. J.D. Edwards signed an
agreement with TRADEX Technologies Inc., making it the first company
licensed to resell the TRADEX Commerce Center(TM) platform. J.D.
Edwards' customers will be able to reap the benefits and efficiencies
of these collaborative business-to-business environments as part of
their J.D. Edwards solution. The agreement also enables the Company
to establish its own trading communities. J.D. Edwards plans to
leverage its domain expertise in supply chain planning and execution
using the TRADEX solution. As part of this agreement, J.D. Edwards
will be making a minority equity investment in the company. Ariba
Inc. has announced it plans to acquire TRADEX in early 2000.
-- Continued growth in license fee revenue. License fee revenue
increased 20% over the first quarter of fiscal 1999. The growth was
fueled by sales to customers including Anchor Glass Container Corp.,
Ampacet Corporation, Gateway, Inc., Erickson Retirement Communities,
Japan Business Computer Co., Phillip Morris Holland B.V.,
ServiceMaster Consumer Services LP, and The Pfaltzgraff Co.
-- Corporate culture recognition. For the second consecutive year J.D.
Edwards' commitment to its employees was recognized. The Company was
ranked in Fortune Magazine's "Top 100 Companies to Work for in
America."
-- Success in Active Procurement. The Company announced that Cargill
Incorporated and Lexmark International, Inc. have signed agreements to
use the J.D. Edwards E-Procurement powered by Ariba. Cargill will
deploy the application globally in over 1,000 locations with
approximately 12,000 users. Lexmark also plans to implement the
solution globally.
-- Additional Active Procurement capabilities. J.D. Edwards signed a
global reseller agreement with Extensity, a provider of Internet-based
workforce optimization solutions. Extensity's applications are
designed to improve employee productivity and operational efficiency.
J.D. Edwards' first customer under this agreement, Hon Industries, a
large furniture manufacturer, expects to reduce costs through
efficiencies and negotiations with suppliers. The Company made a
minority equity investment in Extensity this quarter prior to its
initial public offering.
-- Expanded application hosting -- JDe.sourcing. J.D. Edwards launched
its second-generation application hosting initiative. Through
JDe.sourcing, the Company now offers a direct delivery model for its
enterprise software applications and e-Business solutions. Customers
can now access the full suite of J.D. Edwards e-Business/enterprise
solutions via the direct model or through an application service
provider.
-- Expanded Customer Relationship Management initiatives. J.D. Edwards
expanded the range of Siebel Systems' products it can now resell,
giving the Company's customers access to the full range of Siebel's
eBusiness Applications. The integrated J.D. Edwards/Siebel offering
provides customers a more immediate return on investment. J.D.
Edwards also signed an agreement with Andersen Consulting to
co-develop a J.D. Edwards/Siebel solution that will allow consumer
packaged goods companies to better manage their customer and supplier
relationships.
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)
(unaudited)
Three Months Ended
January 31,
1999 2000
Revenue:
License fees $69,599 $83,287
Services 153,338 148,419
Total revenue 222,937 231,706
Costs and expenses:
Cost of license fees 5,291 12,904
Cost of services 99,462 88,571
Sales and marketing 69,413 81,245
General and administrative 24,389 22,934
Research and development 22,715 29,364
Subtotal 221,270 235,018
Income (loss) from operations
excluding amortization of
acquired intangibles 1,667 (3,312)
Amortization of acquired intangibles -- 5,878
Operating income (loss) 1,667 (9,190)
Other income (expense):
Interest income 5,344 3,963
Foreign currency losses and
other, net (237) 4,986
Income (loss) before income taxes 6,774 (241)
Provision for (benefit from)
income taxes 2,506 (89)
Net income (loss) $4,268 $(152)
Net income (loss) per common share:
Basic -
Excluding acquired in-process
research and development and
amortization of intangibles $0.04 $0.03
Acquired in-process research and
development and amortization of
intangibles $-- $(0.03)
Net income (loss) per share $0.04 $0.00
Diluted - (1)
Excluding acquired in-process
research and development and
amortization of intangibles $0.04 $0.03
Acquired in-process research and
development and amortization of
intangibles $-- $(0.03)
Net income (loss) per share $0.04 $(0.00)
Shares used in computing per share
amounts:
Basic 103,111 107,649
Diluted (1) 111,549 107,649
J.D. EDWARDS & COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS, continued
(in thousands, except per share amounts)
(unaudited)
The impact of the charges for the amortization of acquired intangibles
on net income (loss) and diluted net income (loss) per share is as
follows:
Three Months Ended
January 31, 2000
Before After
amortization amortization
of acquired of acquired
intangibles intangibles
Income (loss) from operations $(3,312) $(9,190)
Other income, net 8,949 8,949
Provision for (benefit from)
income taxes 2,086 (89)
Net income (loss) $3,551 $(152)
Net income (loss) per share (1):
Basic $0.03 $0.00
Diluted $0.03 $0.00
Shares used in computing net income
(loss) per share:
Basic 107,649 107,649
Diluted 107,649 107,649
(1) Common stock equivalents such as stock options are not included
in the computation of the diluted loss per share for the quarter ended
January 31, 2000. The effect of including common stock equivalents would
be to decrease the reported net 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)
(unaudited)
October 31, January 31,
1999 2000
ASSETS
Current assets:
Cash and cash equivalents $113,341 $116,920
Short-term investments in
marketable securities 62,546 77,386
Accounts receivable, net of
allowance for doubtful accounts
of $12,000 at October 31, 1999
and January 31, 2000 236,216 277,361
Prepaid and other current assets 34,936 64,668
Total current assets 447,039 536,335
Long-term investments in marketable
securities 246,564 225,569
Property and equipment, net 86,332 89,796
Non-current portion of deferred
income taxes 82,572 93,627
Deposits and other assets 78,021 72,446
940,528 $1,017,773
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $46,004 $49,396
Unearned revenue and customer
deposits 114,865 160,365
Accrued liabilities 162,635 153,598
Total current liabilities 323,504 363,359
Unearned revenue, net of current
portion, and other 24,304 26,626
Total liabilities 347,808 389,985
Common shares subject to repurchase,
at redemption amount -- 69,477
Stockholders' equity:
Preferred stock, $.001 par value;
5,000,000 shares authorized; none
outstanding -- --
Common stock, $.001 par value;
300,000,000 shares authorized;
107,109,494 and 108,501,678
issued and outstanding as of
October 31, 1999 and January 31,
2000, respectively 107 109
Additional paid-in capital 456,387 406,268
Deferred compensation (283) (227)
Retained earnings 138,100 137,948
Accumulated other comprehensive
income: unrealized gain on equity
securities and foreign currency
translation adjustments (1,591) 14,213
Total stockholders' equity 592,720 558,311
940,528 $1,017,773
SOURCE J.D. Edwards & Company
CO: J.D. Edwards & Company
ST: Colorado
IN: CPR
SU: ERN
02/23/2000 16:05 EST prnewswire.com |
