J.D. Edwards Reports Financial Results for the Second Quarter Ended April 30, 1999
DENVER, May 26 /PRNewswire/ -- J.D. Edwards & Company (Nasdaq: JDEC) today
reported financial results for the second quarter ended April 30, 1999. Total
revenue was within the preliminary ranges reported on May 3, 1999, and license
fee revenue was slightly above the preliminary range.
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Revenue for the second quarter of fiscal 1999 increased 11% to
$231.6 million, compared to revenue of $209.0 million in the second quarter of
fiscal 1998. The net loss for the quarter was $10.4 million, or $0.10 per
share, compared with net income of $12.3 million, or $0.11 per diluted share,
in the same period last year. License fee revenue was $67.2 million, compared
to license fee revenue of $76.4 million in the second quarter of fiscal 1998.
Services revenue rose 24% over the same period last year, to $164.4 million.
For the six months ended April 30, 1999, revenue reached $454.5 million,
an increase of 17% over revenue of $387.2 million for the same period in the
prior year. The net loss for the six months ended April 30, 1999 was
$6.1 million, or $0.06 per share, compared to net income of $18.8 million, or
$0.17 per diluted share, for the six months ended April 30, 1998.
Operating Highlights
Since the last earnings release, J.D. Edwards has announced several
strategic initiatives to extend its product offering and launch its E-Business
solution. The company made investments in its development, sales and
marketing efforts to strengthen its infrastructure and position the company to
execute on its long-term strategic plan. Significant announcements and
milestones achieved since the last earnings release include:
-- Acquisition of Numetrix Limited. Numetrix Limited is a Toronto-based
provider of Internet-enabled supply chain planning software. This
solution strongly positions J.D. Edwards to address the rapidly
expanding business-to-business Internet commerce market as leading
corporations demand global, integrated supply chain solutions. The
Numetrix solution is designed to permit users to plan, synchronize and
optimize the management of their supply chains on a comprehensive and
timely basis over the Internet. The combined Numetrix/J.D. Edwards
offering is intended to result in an integrated, Web-based supply chain
solution that accelerates the flow of goods and services through the
extended enterprise, reducing manufacturing cycle time and investment
in working capital, and increasing responsiveness to customer demands.
-- Partnership with Siebel Systems, Inc. (Nasdaq: SEBL). J.D. Edwards and
Siebel formed a strategic sales and product partnership in which they
will collaborate to deliver Web-based enterprise and E-Business
solutions. Under the agreement, J.D. Edwards will resell Siebel's
market-leading sales applications to extend and enhance the
customer-centric supply chain capabilities of its software suite,
tightly integrating OneWorld(TM) with Siebel's Web-based front office
software. The solution serves as a key part of J.D. Edwards' larger
E-Business offering.
-- Alliance with Ariba, Inc. J.D. Edwards and Ariba entered into a
strategic alliance in which J.D. Edwards will resell Ariba(R)
business-to-business electronic commerce solutions. Under the
agreement, J.D. Edwards will integrate OneWorld with a
specifically-engineered version of Ariba Operating Resource Management
System(TM) (Ariba ORMS(TM)) and with Ariba.com Network(TM). The
combined solution is intended to extend J.D. Edwards' procurement
offering and provide customers with solutions to improve the efficiency
and reduce the cost of acquiring and managing operating resources.
-- Introduction of ActivEra(TM) E-Business solution. ActiveEra E-Business
is a comprehensive electronic business solution that enables companies
to act as virtual enterprises with customers, suppliers and partners.
ActivEra E-Business provides organizations with a dynamic and flexible
software solution that leverages the Internet for putting ideas quickly
into action to achieve competitive advantage and speed time to market.
The E-Business solution combines the strengths of OneWorld, ActivEra,
Numetrix and partners, allowing corporations to extend their systems
across the enterprise, personalize their applications to meet their
individual needs, and facilitate true web collaboration between
customers, vendors and partners.
-- Extended global strategic alliances. The company formed worldwide
strategic alliances with global solutions providers, including Andersen
Consulting and Deloitte Touche Tohmatsu, to provide professional
services, business strategy and enterprise software solutions to
companies worldwide.
-- Release of AIMx. J.D. Edwards introduced AIMx (Asset Investment
Management and Execution), a supply chain management model for the
service industries. Available with the most recent release of
OneWorld, AIMx provides an information backbone for managing processes
and data efficiently and extending the supply chain beyond the
organization itself to include employees and customers. Industries
which stand to benefit include banking, health care, insurance,
hospitality, entertainment, business services, public services (local
and county government and K-12 education), construction, engineering,
real estate and mining.
-- Launch of Partners in Development Program. The Partners in Development
program will open new vertical markets not currently addressed by J.D.
Edwards. Under the program, J.D. Edwards will provide software
development partners with the ability to reengineer their solutions in
the OneWorld environment and integrate their vertical applications with
OneWorld. The program allows J.D. Edwards to cost-effectively expand
into new vertical markets.
-- Expansion of Business Intelligence/Knowledge Management applications.
As part of its ActivEra Knowledge Management strategy, J.D. Edwards
announced new business intelligence functionality and enhanced
analytical capabilities. New functionality includes a balanced
scorecard application, an executive information system and enhanced
analytical and data warehousing capabilities. The company also has
partnerships with Armstrong Laing Group and Cognos to deliver
activity-based management and information modeling tools. These
applications and partnerships are intended to provide customers with
more timely and complete access to information, enabling a company's
employees to take a more strategic approach in supporting their
organization's business goals.
-- Signing of new license agreements. License agreements were signed with
customers including Servicemaster Consumer Services Limited
Partnership, Waste Management, Inland Paperboard & Packaging, Inc.,
Kaufman & Broad Home Corporation, Bic SA, Masco Corporation, Weather
Shield Mfg. Inc., Crane Plastics Limited Partnership, Wabash Alloys,
and Societe Parisienne d'Etudes d'Informatique et de Gestion. The
company now has over 5,100 customers worldwide.
-- Numerous customers going live on OneWorld. More than 110 customers
went live on OneWorld in the quarter, bringing the total number of live
OneWorld customers to over 300. Customers that recently went live
include AVS Technologies, Inc., Benjamin Moore & Co. Limited, Groupe
Lavo Inc., H&R Block Tax Services, Inc., Itron Incorporated, Network
Appliance, Inc., O'Neal Steel, Inc., Robinson Brick Company, STIHL
Limited and Tiffany & Co.
-- New performance and scalability records. OneWorld achieved its highest
scalability rating to date on Sun's Enterprise 4500 server. The
performance milestone was reached with 2,500 virtual users processing
95,000 business transactions per hour with subsecond response time.
About J.D. Edwards
J.D. Edwards provides Idea to Action(TM) software for managing the
enterprise and supply chain. The Company's integrated applications give
customers control over their front office, manufacturing,
logistics/distribution, human resources and finance processes for the consumer
products, industrial and services industries. J.D. Edwards enables Idea to
Action with ActivEra(TM), a collection of tools and technologies that extend
the J.D. Edwards SCOREx and AIMx supply chain solutions, and OneWorld(TM) and
WorldSoftware(TM) enterprise business software. ActivEra allows customers to
change their enterprise 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 and posted fiscal
1998 revenues of $934 million. 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 or 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.
J.D. EDWARDS & COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
1998 1999 1998 1999
Revenue:
License fees $76,424 $67,204 $144,414 $136,803
Services 132,567 164,387 242,833 317,725
Total revenue 208,991 231,591 387,247 454,528
Costs and expenses:
Cost of license fees 8,185 7,556 19,304 12,847
Cost of services 84,559 106,663 155,147 206,125
Sales and marketing 61,440 83,458 111,861 152,871
General and
administrative 18,211 25,487 36,650 49,876
Research and
development 20,640 31,183 40,578 53,898
Total costs and
expenses 193,035 254,347 363,540 475,617
Operating income (loss) 15,956 (22,756) 23,707 (21,089)
Other income (expense):
Interest income 3,749 5,612 7,408 10,956
Interest expense (119) (416) (664) (620)
Foreign currency
gains (losses) and
other, net (10) 1,053 (675) 1,020
Income (loss) before
income taxes 19,576 (16,507) 29,776 (9,733)
Provision for
(benefit from)
income taxes 7,243 (6,107) 11,017 (3,601)
Net income (loss) $12,333 $(10,400) $18,759 $(6,132)
Net income (loss) per
common share:
Basic $0.13 $(0.10) $0.20 $(0.06)
Diluted (a) $0.11 $(0.10) $0.17 $(0.06)
Shares used in
computing per share
amounts:
Basic 96,975 105,333 95,194 104,222
Diluted 109,525 105,333 108,821 104,222
(a) Diluted net loss per share for fiscal 1999 periods is the same as
basic net loss per share since all stock options were antidilutive.
J.D. EDWARDS & COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
October 31, April 30,
1998 1999
ASSETS
Current assets:
Cash and cash equivalents $183,115 $114,394
Short-term investments 28,667 55,490
Accounts receivable, net of allowance
for doubtful accounts of $12,900 at
October 31, 1998 and $10,700 at
April 30, 1999, respectively 265,704 253,767
Prepaid and other current assets 32,823 40,601
Total current assets 510,309 464,252
Long-term investments 322,527 347,143
Property and equipment, net 60,689 75,993
Software development costs, net 5,821 5,852
Non-current portion of deferred
income taxes 43,658 55,157
Deposits and other assets 7,469 12,366
950,473 $960,763
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $60,366 $49,913
Unearned revenue and customer deposits 121,092 142,340
Accrued liabilities 157,473 132,642
Total current liabilities 338,931 324,895
Unearned revenue, net of current
portion, and other 27,546 24,179
Total liabilities 366,477 349,074
Stockholders' equity:
Preferred stock, $.001 par value;
5,000,000 shares authorized;
none outstanding -- --
Common stock, $.001 par value;
300,000,000 shares authorized;
102,681,608 and 105,796,979 issued
and outstanding as of October 31, 1998
and April 30, 1999, respectively 103 106
Additional paid-in capital 406,886 440,468
Deferred compensation (677) (472)
Retained earnings 177,324 171,192
Accumulated other comprehensive income:
foreign currency translation
adjustments 360 395
Total stockholders' equity 583,996 611,689
950,473 $960,763
SOURCE J.D. Edwards & Company
CO: J.D. Edwards & Company; Siebel Systems, Inc.
ST: Colorado
IN: CPR
SU: ERN
05/26/99 16:05 EDT prnewswire.com |
