Bullishness continues..
JDA Software Beats Analysts' Expectations With $0.15 EPS for Second Quarter 2000
EPS up 400 Percent and Record-breaking License Revenues up 75 Percent from 1999 Levels
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--July 20, 2000 - JDA Software Group Inc. (Nasdaq: JDAS - news) Thursday announced financial results for the second quarter and six months ended June 30, 2000.
Revenues for the second quarter of 2000 were $46.1 million, an increase of 24 percent over the second quarter of 1999. The second quarter 2000 financial results include $5.5 million in revenues from the Intactix product line that was acquired on April 6, 2000.
Software license revenues for the second quarter of 2000 were $18.6 million (including $2.2 million from Intactix), a 75 percent increase over the $10.7 million reported in the prior year quarter and a 20 percent sequential increase over the first quarter of 2000.
The company also reported net income of $3.8 million, or $.15 per share for the second quarter of 2000 which includes $.01 per share earnings from Intactix, versus net income of $780,000, or $.03 per share in the corresponding quarter of 1999.
Excluding purchased in-process research and development and amortization of acquisition related intangibles, net income for the second quarter of 2000 was $5.0 million, or $.20 per share, compared to net income of $1.4 million, or $.06 per share in the second quarter of 1999.
``Our outstanding financial results were due to strong demand for our market-leading products,'' commented JDA Chief Executive Officer Jim Armstrong. ``The U.S. delivered a 317 percent increase in software license sales over the prior year followed by increases in Canada and Asia Pacific of 289 percent and 101 percent, respectively.
``We are optimistic about the future of JDA based on the excitement generated at our recent Users Conference, the global appeal of our open product line, JDA Portfolio, and our robust pipeline for the remainder of 2000.
``Further, we continue to capitalize on back-selling opportunities in our install base with such sales comprising nearly 31 percent of year-to-date software sales in 2000 compared with 21 percent in the first half of 1999.''
Armstrong continued, ``By investing $7.0 million in product development in the second quarter, a 14 percent increase over prior year quarter, the company proved its steadfast commitment to enhancing and expanding its product line to ensure its clients' return on investment.
``During the quarter, JDA made significant progress assimilating the Intactix organization and integrating its space management products with the appropriate Portfolio applications. With a record number of Intactix clients attending the JDA Users Conference, the company also had the opportunity to begin marketing directly to Intactix's extensive client base.
``Additionally, JDA also closed some key strategic deals during the quarter to further position the Intactix brand as the space management solution of choice for tier one merchandisers.''
Due to the strong increase in software license revenue, JDA's operating income for the second quarter of 2000 increased to $5.2 million or 11 percent of sales, compared to $384,000 or approximately 1 percent of sales in the quarter ending June 30, 1999.
Six Month 2000 Results
For the six months ended June 30, 2000, revenues were $85.3 million, an increase of 18 percent over the $72.4 million reported for the comparable period of 1999. Software license revenues for the first two quarters of 2000 increased 89 percent to $34.1 million over the first half of 1999.
Consulting service revenues for the first two quarters of 2000 were $38.3 million, a 15 percent decrease from the comparable period of 1999 which is primarily attributable to the declines in software license sales experienced through much of 1999.
The company expects that continued gains in license activity will positively impact service revenue in late 2000. Maintenance services revenues in the first half of 2000 increased 40 percent to $12.9 million, primarily due to the acquisition of Intactix on April 6, 2000.
Net income for the six months ended June 30, 2000 was $6.0 million, or $.24 per share, compared to a net loss of $490,000 or $.02 per share in the first half of 1999.
Highlights of Second Quarter Accomplishments
Announcement of JDA Portfolio: The company announced JDA Portfolio, a collection of JDA's proven, industry-leading solutions combined plus several innovations for retailers and merchandisers, to a standing-room-only crowd at its June 2000 Users Conference. JDA explained its plans to develop Portfolio to address such New Economy requirements as customer relationship management, e-commerce, multi-channel order processing, advanced forecasting and data mining as well as continue to deliver solutions to address their mission-critical requirements with some of the best brands in retail: Arthur, Intactix and ODBMS.
New Product Versions Drive Sales: JDA announced in the second quarter the release of new versions of Merchandise Management System (MMS), the number one IBM/AS400-based host solution in the world, and Win/DSS, featuring a completely redesigned user interface. As proof of the overwhelming market acceptance for these products, JDA signed 120 percent and 75 percent more MMS and Win/DSS deals respectively in second quarter than it closed in first quarter 2000.
Separately the company reported, DSOs at June 30, 2000 were 97 days compared to 97 days at June 30, 1999 and 86 days at March 31, 2000. With positive cash flow in the second quarter and zero debt, JDA continues to be in excellent financial condition.
The company generated approximately $4 million in cash during the second quarter of 2000 after giving effect to the acquisition of Intactix. In addition, JDA had $14 million in deferred revenues at June 30, 2000.
Conference Call Information
The company will hold its regularly scheduled conference call at 4:45 p.m. Eastern Standard Time to discuss its second quarter results. The following telephone numbers can be used for anyone interested in participating: 800/288-8968 (United States) or 612/332-0720 (International) and ask the operator for the ``JDA Second Quarter Earnings Release.''
A replay of the conference call will begin July 20, 2000 at 8:15 p.m. EST and end on August 3, 2000 at 11:59 p.m. EST. Interested parties can hear the recall by dialing 800/475-6701 (United States) 320/365-3844 (International) using Access Code 527732.
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 July 20, 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
With the world's largest base of multi-channel retailers and merchandisers, JDA Software Group Inc. is the global leader in providing integrated software and professional services that address real-world issues to help companies manage their mission critical operations.
By capitalizing on its market position and financial strength, JDA commits significant resources in furthering its next generation of retail intelligent solutions that exploit the power of the Internet to meet emerging business needs.
Founded in 1985, JDA is headquartered in Scottsdale and employs approximately 1,100 associates operating from 26 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more information, visit JDA 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 JDA's market leading products; expected continued momentum and demand for our products based on excitement generated at our Users Conference, global appeal for our products line, the JDA Portfolio, and our robust pipeline; continued back-selling opportunities in our install base; expected positive impact on services revenues in late 2000 from increased license activity; plans to evolve the JDA Portfolio to stay ahead of New Economy requirements and to provide solutions to address such New Economy requirements; market acceptance of new versions of MMS and Win/DSS; commitment to expanding its product line to ensure its clients' return on investment; and continued ability to assimilate and integrate Intactix and ability to directly market to Intactix's extensive client base.
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, and market acceptance of, new products or new versions of existing products; such as ODBMS, MMS.com, Win/DSS and available and planned Internet Portals; the risk that the company will not be able to evolve its JDA Portfolio to address New Economy requirements; uncertainties related to the company's ability to predict or measure momentum and demand for its products; the risk that emerging markets such as B2B and B2C may not mature as the company expects; the risk that services revenues 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; risks that the company will not be able to market directly to Intactix's extensive customer base; risks that the company will not be able to back-sell to its current install base; risks that the expansion of the company's product line will not allow its clients' to realize a return on investment; 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. |
