Bullish JDAS earnings release...
Wednesday April 19, 4:04 pm Eastern Time
Company Press Release
JDA Software Reports $0.11 EPS for First Quarter 2000, Excluding $0.02 Restructuring Charge
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 19, 2000--JDA Software Group Inc. (Nasdaq:JDAS - news) Wednesday announced financial results for the first quarter ended March 31, 2000.
Revenues for the first quarter were $39.2 million, an increase of 11% over the corresponding quarter in 1999. Software license revenues for the first quarter were $15.5 million, a 109% increase over the $7.4 million reported in the prior year quarter and a 54% sequential increase over fourth quarter 1999.
First quarter net income was $2.7 million, or $0.11 per share, excluding the $0.02 per share after tax effect of an $828,000 restructuring charge, versus breakeven results in first quarter 1999, excluding the $0.05 per share after tax effect of a $2.1 million restructuring charge.
``Our record-breaking software license revenue is due to a 55% increase in the U.S. and a 158% increase in our international software license activity over first quarter 1999,' commented JDA Chief Executive Officer Jim Armstrong.
``Not only are we seeing increased demand, we're also seeing an increased urgency from retailers to become quickly operational with the latest technology that will enable them to gain a competitive advantage in managing their multi-channel business.'
Continued Armstrong, ``Last year when demand was off, we continued to significantly invest in all product lines as well as new Internet applications. As a result, our sales force can now go into the field with fresh new products with added functionality that leverages the Internet for business-to-consumer (B2C) and business-to-business (B2B) operations.
``We are well positioned to capitalize on the emerging requirements of retailers engaged in e-business.'
As expected, consulting, maintenance and other revenues were down 5% sequentially over fourth quarter 1999 due to the declines in software license sales experienced throughout most of 1999. The company expects that continued gains in license activity will positively impact services earnings in late 2000.
Due to the strong increase in software license revenue, operating income for the quarter ending March 31, 2000, excluding the restructuring charge, increased to $3.3 million or 8.3% of sales compared to $10,000 or less than 1.0% of sales in the quarter ending Dec. 31, 1999.
Separately, the company reported that DSOs at March 31, 2000 were 86 days compared to 102 days at March 31, 1999 and 85 days at Dec. 31, 1999. With positive cash flow and zero debt for the first quarter year, JDA continues to be in excellent financial condition. The company generated over $1.8 million in cash during the first quarter.
In addition, JDA had $8.1 million in deferred revenues at March 31, 2000.
Highlights of First Quarter Accomplishments
The following highlights key first quarter milestones:
Sales Activity: With demand up across the board, the company
was able to beat its forecast in the EMEA, Asia Pacific and
Latin American regions. Factors contributing to such strong
growth in international sales include: the continued economic
improvement in Asia; increased incentives for local retailers
to license packaged solutions as a result of intensifying
competition; JDA's ability to deliver a proven, localized
enterprise solution using an accelerated implementation
approach; and our more seasoned global sales force.
Additionally, JDA is benefiting from the apparent release of
pent up demand that was caused by a slow-down in spending due
to Y2K concerns in 1999.
Alliances to Further E-Business Positioning: JDA announced
strategic partnerships with IBM, Harbinger Corp., and Accrue
Software to further its ability to offer the most innovative
B2B and B2C solutions. For example, JDA's strategic
partnership with Harbinger is intended to enable the company
to offer integrated B2B solutions to improve supply chain
communications and operating efficiencies. Its alliance with
Accrue is intended to enable JDA to provide its clients with
proven data mining capabilities and such emerging B2B
technology as click stream web analysis.
Intactix Acquisition: The company signed a definitive
agreement to acquire the assets of Intactix from Pricer AB.
This acquisition was finalized on April 6, 2000. Welcoming
approximately 3,400 new clients, JDA can now capitalize on
expanded cross selling opportunities of software, consulting
and support and further its strong position in retail up the
supply chain and into the manufacturing industries. The
acquisition also places the company in an excellent position
to maximize the sales of its Web-based portals, and
collaborative applications in the B2B marketplace.
Research and Development: With technology evolving at such a
startling rate, the company continued to invest significantly
in its core products and new e-retail solutions. It allocated
$6.2 million, a 10% increase over prior year quarter, to R&D.
To help prove the power that its new Internet Portals can
deliver, JDA signed longtime client, Paper Warehouse, to serve
as a beta partner in first quarter 2000.
Earnings and Conference Call Information
The company will hold its regularly scheduled conference call at 4:45 p.m. Eastern Standard Time to discuss its first quarter results. The following telephone numbers can be used for anyone interested in participating: 800/553-0327 (United States) or 612/332-0932 (International) and ask the operator for the ``JDA First Quarter Earnings Release.'
A replay of the conference call will begin April 19, 2000 at 7:45 p.m. EST and end on May 4, 2000 at 11:59 p.m. EST. Interested parties can hear the recall by dialing 800/475-6701 (United States) or 320/365-3844 (International) using Access Code 512273.
Additionally, interested parties can hear the conference call over the Internet through Vcall. To listen, callers must log onto the Vcall web site, vcall.com, on April 19, 2000 by 4:30 p.m. EST to register, download and install any necessary audio software.
For those who cannot listen to the live broadcast, a replay will be available on Vcall shortly after the call and a transcript will be posted to Vcall's web site 24 to 48 hours after the call.
About JDA Software Group Inc.
JDA Software Group Inc. is the leading global provider of integrated software products and professional services with more than 4,100 retail and CPG clients in over 50 countries.
Designed for multi-channel companies with physical, virtual and catalog operations, JDA's e-retail solutions include merchandising, planning, space management, allocation and decision support systems; warehouse management and logistics systems; point-of-sale and back-office in-store systems; and such dynamic B2C and B2B applications as Internet Portals and the industry's first integrated commercial e-commerce solution.
Founded in 1985, JDA employs approximately 1,100 associates operating from 26 offices worldwide. With headquarters in Scottsdale, the company has offices in major cities throughout the United States as well as internationally in Canada, the United Kingdom, France, Germany, Sweden, The Netherlands, Mexico, Brazil, Chile, Hong Kong, Japan, Malaysia, Singapore, and Australia.
For more information, refer to JDA's Web site at jda.com.
This press release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements include Armstrong's remarks regarding increased demand for the company's products, particularly the company's new Internet products for B2B and B2C operations; expected positive impact on service earnings in late 2000 from increased license activity; increased product demand with the passage of the millennium changeover; new product offerings and capabilities from new alliances with IBM, Harbinger and Accrue; cross-selling opportunities and enhanced abilities to penetrate the supply chain and manufacturing industries with the acquisition of Intactix; and, proving the effectiveness of the company's new and planned Internet Portals products.
The accuracy of these forward-looking statements is subject to a number of significant risks and uncertainties including, but not limited to, the uncertainty regarding the timing and probability of booking large individual sales near the end of the company's fiscal quarters; the unpredictable nature of overall demand for the company's products and services; the risk of successfully completing development of new products, such as Internet Portals, and new versions of existing products; uncertainties regarding the market acceptance of the company's newer products such as ODBMS, MMS.com and available and planned Internet Portals; the risk that emerging markets such as B2B and B2C may not mature as the company expects; the risk that services earnings will not increase in response to increased license activity; the risk that new third party alliances will not be effective from a marketing or a product development standpoint; the risk that the company will not be able to successfully integrate Intactix personnel and products into the company; the risk that the Intactix acquisition will not enhance the company's ability to penetrate new markets such as retail suppliers and manufacturers; uncertainties related to international sales such as currency exchange rates and the difficulty of overseas collections; the risk that the company's sales and marketing programs will not be effective; the risk that competitors could gain market share or force significant price competition in some or all of the markets for the company's products; the risk that the company may not be able to attract and retain skilled technical and managerial personnel; and other risks detailed in the company's filings with the Securities and Exchange Commission.
As a result of these and other risks, actual results may differ materially from those predicted. |
