JDA Software Announces First Quarter Results Including $2.1 Million Restructuring Charge
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 26, 1999--JDA Software
Group Inc. (Nasdaq:JDAS) today announced financial results for the
first quarter ended March 31, 1999. Revenues for the quarter ended
March 31, 1999 were $35.2 million, an increase of 14% over the $30.9
million reported in the comparable prior year period. The Company
incurred a $2.1 million restructuring charge which resulted in a net
loss for the quarter ended March 31, 1999 of $(1.3) million, or
$(0.05) per share, compared to net income of $3.5 million, or $0.17
per share in the comparable prior year period. The historical earnings
per share amounts for the three months ended March 31, 1998 have been
restated to reflect the Company's three-for-two stock split that was
announced in June 1998 and which became effective on July 17, 1998.
Software License revenues were up 12% sequentially over the
quarter ending Dec. 31, 1998 and down 38% compared to the first
quarter of 1998. Consulting, maintenance and other revenues were up
47% over the prior year and up 5% sequentially over the fourth quarter
of 1998. Margins on the Company's service business increased to 34%,
up from 27% in the first quarter of last year and from 31% in the
fourth quarter.
The $2.1 million restructuring charge was incurred to close three
unprofitable and/or redundant locations, reduce headcount and
write-down the related excess fixed assets. Since the fourth quarter
of 1998, the Company has reduced its annual operating expense rate by
more than $9 million through the elimination of 80 outside
contractors, the reduction of over 50 employees and the three office
closures.
"We have completed our review of the business and our management
reorganization," stated Jim Armstrong, Co-Chairman and Co-CEO. "Absent
the restructuring charge this quarter, we were at break even. Our
services business remains robust and profitable. We will continue to
use 1999 wisely to invest in our products and focus on client
satisfaction in order to be well positioned when the rebound in demand
occurs."
Separately, the Company reported that DSOs at March 31, 1999
dropped to 102 days compared to 113 days at Dec. 31, 1998.
The Company will host a conference call today at 4:45 p.m. EDT to
discuss its quarterly results. The following telephone numbers can be
used for anyone interested in participating: U.S. and Canadian callers
can dial 800/230-1074; and parties located outside of U.S. and Canada
should dial 612/288-0318. Anyone interested in hearing a replay of the
JDA conference call can dial the following numbers through May 10,
1999: U.S. and Canadian callers, 800/475-6701, access code: 446570;
and international callers, 320/365-3844, access code: 446570.
ABOUT JDA SOFTWARE GROUP
JDA Software Group Inc. (Nasdaq:JDAS) is a global provider of
integrated retail software products and professional services for more
than 600 clients worldwide. Designed to "Optimize the Retail
Enterprise," JDA's solution addresses the requirements for the entire
retail supply chain: from corporate with merchandising, planning,
allocation, decision support and financial systems; to the
distribution center with warehouse management and logistics systems;
at the store with point-of-sale and back-office applications; and on
the Internet with Web-based solutions. Founded in 1985, JDA employs
more than 1,000 associates operating from 20 offices. With
headquarters in Phoenix, Arizona, the company has offices in major
cities throughout the United States as well as internationally in
Canada, the United Kingdom, France, Mexico, Brazil, Chile, Singapore,
and Australia. For more information, refer to JDA's Web site at
jda.com.
This press release may contain forward-looking statements that
are made in reliance upon the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Future events may involve
risks and uncertainties, among which are uncertainties related to
international sales, the final development and market acceptance of
proposed new products, the effectiveness of sales and marketing
programs to promote and distribute new products, actions by
competitors which could affect sales, pricing and profitability of the
Company's products, management of product transition, the ability of
the Company to attract and train the skilled personnel required to
implement its products, general market conditions and other risks
detailed in the prospectuses relating to the Company's two public
offerings, and which are and will be detailed from time to time in SEC
reports filed by the Company.
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JDA SOFTWARE GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
ASSETS
March 31, December 31,
1999 1998
(Unaudited)
Current Assets:
Cash and cash equivalents $33,153 $42,376
Marketable securities 38,189 36,316
Accounts receivable, net 39,923 40,570
Deferred tax asset 3,001 2,121
Prepaid expenses and other current
assets 5,076 5,003
Total current assets 119,342 126,386
Property and Equipment, net 25,089 23,890
Goodwill, net 34,926 36,039
Deferred Tax Asset 6,549 6,549
Marketable Securities 10,760 6,697
Total assets $196,666 $199,561
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $2,608 $4,834
Accrued expenses and other
liabilities 15,546 16,336
Income taxes payable 211 --
Deferred revenue 7,002 6,894
Total current liabilities 25,367 28,064
Stockholders' Equity:
Preferred stock, $.01 par value.
Authorized 2,000,000 Shares; None
issued or outstanding -- --
Common stock, $.01 par value.
Authorized 50,000,000 Shares; Issued
and outstanding 23,679,783 and
23,419,808, respectively 237 234
Additional paid in capital 174,114 172,417
Retained earnings (deficit) (1,699) (430)
Accumulated other comprehensive
income (loss) (1,353) (724)
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Total stockholders' equity 171,299 171,497
Total liabilities and
stockholders' equity $196,666 $199,561
JDA SOFTWARE GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
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1999 1998
REVENUES:
Software licenses $7,424 $12,049
Consulting, maintenance and other
services 27,762 18,844
Total revenues 35,186 30,893
COST OF REVENUES:
Software licenses 484 505
Consulting, maintenance and other
services 18,326 13,844
Total cost of revenues 18,810 14,349
GROSS PROFIT 16,376 16,544
OPERATING EXPENSES:
Product development 5,614 4,279
Sales and marketing 6,493 3,896
General and administrative 4,075 3,059
Amortization of intangibles 1,122 64
Restructuring and asset disposition charge 2,111 --
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Total operating expenses 19,415 11,298
INCOME (LOSS) FROM OPERATIONS (3,039) 5,246
Other income, net 923 329
INCOME (LOSS) BEFORE INCOME TAXES (2,116) 5,575
Income tax (benefit) provision (847) 2,091
NET INCOME (LOSS) $(1,269) $3,484
BASIC EARNINGS (LOSS) PER SHARE $ (0.05) $0.18
DILUTED EARNINGS (LOSS) PER SHARE $(0.05) $0.17
SHARES USED TO COMPUTE:
Basic earnings (loss) per share 23,547 19,854
Diluted earnings (loss) per share 23,547 20,368
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CONTACT: JDA Software, Scottsdale
Contact:
Kristen L. Magnuson, 602/404-5500
E-mail: kris.magnuson@jda.com |
