J.D. Edwards Reports 22% License Revenue Growth In the Second Quarter Ended April 30, 2000
Company Building Its Leadership Position in Collaborative Commerce
DENVER, May 24 /PRNewswire/ -- J.D. Edwards & Company (Nasdaq: JDEC) today
reported financial results for the second quarter ended April 30, 2000. Total
revenue was within the preliminary range reported on May 4, 2000, and license
fee revenue growth exceeded the preliminary estimate.
Total revenue for the second quarter of fiscal 2000 was $231.0 million,
compared to revenue of $231.6 million in the second quarter of fiscal 1999.
License fee revenue grew 22% over the same period last year, to $81.7 million.
Services revenue was $149.3 million, compared to $164.4 million in the second
quarter of fiscal 1999. Excluding acquisition-related charges, net income for
the quarter was $1.7 million, or $0.02 per share, compared with net loss of
$8.8 million, or $0.08 per share, in the same period last year. Net loss for
the quarter, including acquisition-related charges, was $2.3 million, or
$0.02 per share, compared to net loss of $10.4 million, or $0.10 per share in
the second quarter of fiscal 1999.
For the six months ended April 30, 2000, revenue reached $462.8 million,
compared to revenue of $454.5 million for the same period of fiscal 1999.
Excluding acquisition-related charges, net income for the six months ended
April 30, 2000 was $5.2 million, or $0.05 per share, compared to net loss of
$4.6 million, or $0.04 per share, in the same period last year. Net loss for
the six months ended April 30, 2000, including acquisition-related charges,
was $2.5 million, or $0.02 per share, compared to net loss of $6.1 million, or
$0.06 per share, for the six months ended April 30, 1999.
At the end of the second quarter of fiscal 2000, the Company had over
$400 million of cash and investments.
Strategic Restructuring
Earlier this week, J.D. Edwards announced a strategic restructuring aimed
at reducing costs and strengthening the company's position as a leading
provider of software solutions for collaborative commerce. Under the
restructuring, the Company plans to realize savings from areas such as
consolidating and reducing office space, improving the cost-effectiveness of
training customers and reducing the number of personnel. The Company believes
that this restructuring will free up the necessary resources to continue
building its leadership position in the collaborative commerce market.
Operating Highlights
Since the last earnings release, J.D. Edwards has generated significant
license revenue growth and demonstrated success in the supply chain and
customer relationship markets. Significant announcements and milestones
achieved since the last earnings release include:
-- Continued growth in license fee revenue. License fee revenue
increased 22% over the second quarter of fiscal 1999. The growth was
fueled by sales to customers including Raytheon RF Components, Miller
Fluid Power Corporation, Royal Vopak, Miller Group Limited and
Wessanen USA, Inc.
-- Continued momentum in supply chain solutions for the extended
enterprise. The Company signed agreements for Active Supply Chain
with a number of customers including Reckitt Benckiser plc,
Hillenbrand Industries, Inc., Appleton Coated L.L.C., Papeteries
Canson et Montgolfier, and Igepa Papertec GmbH. Reckitt Benckiser, a
global manufacturer of household cleaning materials with operations in
over 50 countries, purchased Active Supply Chain to improve
collaboration in their supply chain.
-- Success in customer relationship management. The Company signed
several agreements for its Active Customer Relationship solution to
customers including Johnson Wax Professional, MidAmerican Holding
Company, and Hillenbrand Industries, Inc. Hillenbrand Industries
purchased Active Customer Relationship Management in addition to
Active Supply Chain and Active Enterprise for a complete end-to-end
solution.
-- Reappointment of founder C. Edward McVaney to President and CEO.
C. Edward McVaney returned to the position of President and Chief
Executive Officer. McVaney had been CEO from the company's inception
in 1977 to November 1998. He also serves as Chairman of the Board of
Directors.
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
1-800-727-5333.
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.
J.D. EDWARDS & COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
1999 2000 1999 2000
Revenue:
License fees $67,204 $81,742 $136,803 $165,029
Services 164,387 149,307 317,725 297,726
Total revenue 231,591 231,049 454,528 462,755
Costs and expenses:
Cost of license
fees 7,421 14,122 12,712 27,026
Cost of services 106,605 92,139 206,067 180,710
Sales and
marketing 83,347 91,790 152,760 173,035
General and
administrative 25,487 25,218 49,876 48,152
Research and
development 28,996 28,728 51,711 58,092
Subtotal 251,856 251,997 473,126 487,015
Loss from operations
excluding amortization
of acquired intangibles
and in-process research
and development (20,265) (20,948) (18,598) (24,260)
Amortization of
acquired
intangibles 350 6,392 350 12,270
Acquired in-process
research and
development 2,141 -- 2,141 --
Operating loss (22,756) (27,340) (21,089) (36,530)
Other income, net:
Interest income 5,612 3,612 10,956 7,575
Gain on sale of
equity investments
and sale of
product line -- 17,878 -- 24,449
Foreign currency
gains or losses
and other, net 637 2,147 400 562
Loss before
income taxes (16,507) (3,703) (9,733) (3,944)
Benefit from
income taxes (6,107) (1,370) (3,601) (1,459)
Net loss $(10,400) $(2,333) $(6,132) $(2,485)
Net loss per
common share (1):
Basic $(0.10) $(0.02) $(0.06) $(0.02)
Diluted $(0.10) $(0.02) $(0.06) $(0.02)
Shares used in
computing per
share amounts:
Basic 105,333 109,763 104,222 108,706
Diluted 105,333 109,763 104,222 108,706
(1) Common stock equivalents such as stock options are not included in
the computation of diluted loss per share. The effect of including
common stock equivalents would be to decrease the reported losses 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, April 30,
1999 2000
ASSETS
Current assets:
Cash and cash equivalents $113,341 $114,675
Short-term investments in
marketable securities 62,546 55,441
Accounts receivable, net of
allowance for doubtful accounts
of $12,000 at October 31, 1999
and April 30, 2000 236,216 268,748
Prepaid and other current assets 34,936 65,758
Total current assets 447,039 504,622
Long-term investments in
marketable securities 246,564 237,877
Property and equipment, net 86,332 90,911
Non-current portion of deferred
income taxes 82,572 107,672
Deposits and other assets 78,021 83,308
940,528 $1,024,390
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $46,004 $47,768
Unearned revenue and customer deposits 114,865 163,867
Accrued liabilities 162,635 148,692
Total current liabilities 323,504 360,327
Unearned revenue, net of current
portion, and other 24,304 21,571
Total liabilities 347,808 381,898
Common shares subject to repurchase,
at redemption amount -- 115,426
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 110,666,911 issued
and outstanding as of October 31, 1999
and April 30, 2000, respectively 107 111
Additional paid-in capital 456,387 389,813
Deferred compensation (283) (172)
Retained earnings 138,100 135,615
Accumulated other comprehensive
income: unrealized gain on equity
securities and foreign currency
translation adjustments (1,591) 1,699
Total stockholders' equity 592,720 527,066
940,528 $1,024,390
SOURCE J.D. Edwards & Company
CO: J.D. Edwards & Company
ST: Colorado
IN: CPR MLM
SU: ERN
05/24/2000 16:08 EDT prnewswire.com |
