J.D. Edwards Announces Strategic Restructuring
DENVER, May 22 /PRNewswire/ -- J. D. Edwards & Company (Nasdaq: JDEC) today announced several initiatives directed towards strengthening its position in the Internet economy.
"Our greatest strength is our ability to deliver solutions that interoperate and collaborate with other software products," said C. Edward McVaney, J.D. Edwards President, CEO and Chairman. "We plan to create a streamlined, more efficient organization that will allow us to bring customers the software solutions they need to maintain their competitive advantage as times and technologies change."
While J.D. Edwards' software license revenue grew approximately 20 percent in the first half of this fiscal year -- a level significantly higher than most competitors -- the company said its cost structure is out of line with its revenues. "We've therefore made the decision to drive expense out of the organization and establish a lower overall cost structure."
As a part of the restructuring, J.D. Edwards plans to realize savings from, among other things, implementation of its e-procurement solutions, wider use of computer-based training alternatives for customers, reducing office space and related overhead expenses, and eliminating approximately 800 positions worldwide.
"Today's announcement is the culmination of a lot of soul-searching, and a careful assessment of our market position," McVaney said. "This was a very tough but very necessary decision. J.D. Edwards wants to be more nimble and responsive to market changes, and to empower and enable the talent we have throughout our company. We believe we have a unique opportunity for J.D. Edwards to shape the collaborative commerce market, by anticipating and responding to our customers' increasingly complex business needs. This restructuring positions us to capture that opportunity by freeing up resources and becoming a more efficient, agile organization."
About J.D. Edwards
J.D. Edwards is a leading provider of agile, collaborative solutions for the Internet economy. The Company's integrated ActivEra(TM) Solutions deliver supply chain collaboration and fulfillment, and enable business-to-business trading communities in the consumer products, industrial and services industries. The Company's solutions are web-enabled and operate in multiple computing environments.
Founded in 1977, J.D. Edwards is headquartered in Denver and posted fiscal 1999 revenues of $944.2 million. Additional information can be obtained by contacting the Company via the Internet at www.jdedwards.com or at 800-727-5333.
NOTE: J.D. Edwards World Source Company. J.D. Edwards is a registered trademark of J.D. Edwards & Company. The names of all other products and services of J.D. Edwards used herein are trademarks and registered trademarks of J.D. Edwards World Source Company. All other product names used herein are trademarks or registered trademarks of their respective owners. The historical results stated above are not necessarily indicative of the results of any future period.
SOURCE J.D. Edwards & Company
CO: J.D Edwards & Company
ST: Colorado
IN: CPR MLM
SU: RCN
05/22/2000 16:00 EDT prnewswire.com |
