Portfolio Strategy Continues to Gain Momentum
Scottsdale, Ariz. - April 22, 2002 - JDAź Software Group, Inc. (Nasdaq:
JDAS) today announced financial results for the first quarter ended March
31, 2002. Pro forma earnings, excluding amortization of intangibles,
purchased in-process research and development, and restructuring, asset
disposition, and other merger related charges, were $5.7 million, or $.20
per share, up 25% from the $3.9 million or $.16 per share achieved in first
quarter 2001. Net income for first quarter 2002 was $4.5 million or $0.16
per share, up 111% from the $2.2 million or $0.09 per share achieved in
first quarter 2001.
Total first quarter 2002 revenues were $59.1 million, up 21% over first
quarter 2001, including software license sales of $19.5 million, up 26%,
services revenues of $26.6 million, up 10% and maintenance revenues of $13
million, up 45% over the prior year`s results. Pro forma income from
operations, excluding amortization of intangibles, purchased in-process
research and development, restructuring, asset disposition and other merger
related charges, was $8.2 million, a 56% increase over the $5.3 million
reported in first quarter 2001, reflecting JDA`s ability to successfully
leverage its global infrastructure.
The Company also announced today that it is filing a "shelf" registration on
Form S-3 with the Securities and Exchange Commission. The registration
statement will cover up to $250 million of the Company`s common stock, which
can be offered under the registration statement from time to time.
Offerings under this shelf registration statement may include some shares
offered by selling shareholders, which might include former E3 stockholders
and members of our management. This press release, and this announcement,
are not offers to sell or solicitations of an offer to buy any of our
securities.
"At the same time as other software companies are reporting a
negative impact from the sluggish economy, we are pleased to report solid
financial gains for first quarter 2002," commented CEO Jim Armstrong. "Our
positive earnings can be directly attributed to the successful execution of
our growth strategies and the greater leverage we are achieving, in
particular, from increases in software license sales. The momentum that we
started in 2001 with tier one grocers continues to build with several major
competitive wins this quarter. We also realized increased incremental
revenues in first quarter 2002 from existing tier one clients that are
continuing to pay incremental license fees as we meet key implementation
milestones."
Added Armstrong, "We`ve also made excellent progress with the growing
movement of retailers, wholesalers and manufacturers that are pursuing
collaborative programs utilizing JDA`s product suite. With over 77
retailer/manufacturer business partners already relying on our products, we
are well positioned to aggressively pursue more customers in the
collaborative marketplace and are pleased with the levels of acceptance that
we are experiencing within this exciting segment."
FIRST QUARTER 2002 HIGHLIGHTS
SALES: JDA`s strong software license activity that exceeded
estimates for first quarter 2002 was highlighted by a strong showing for the
collaborative E3 products that the Company acquired on September 7, 2001. E3
software license sales for first quarter 2002 totaled $6.7 million compared
to bookings of $3.6 million in first quarter 2001, an 86% increase. With a
record 70% of first quarter 2002 software license revenues coming from
existing clients, JDA demonstrated its ability to successfully cross-sell
its portfolio of products. Geographically, sales gains were broad-spread,
with software licenses in first quarter 2002 increasing in the United
States, Europe and Canada by more than 24%, 54% and 65%, respectively,
compared to last year.
COLLABORATIVE MARKET: JDA increased its foothold in the
collaborative market by signing more than twice as many deals for its
collaboration products in first quarter 2002 than in fourth quarter 2001.
JDA supported Collaborative Planning, Forecasting and Replenishment (CPFR)
programs allowed significant customers including ACE Hardware, TruServe
Corp. and CVS to realize strong ROI benefits. These and other existing
clients are actively recruiting new business partners, which should result
in additional sales opportunities for JDA from its existing retailer
customer base.
RESEARCH & DEVELOPMENT: The Company invested a record $10.4
million in research and development in first quarter 2002, a 32% increase
over first quarter 2001, representing 53% of software license sales. This
increase is primarily due to the addition of product developers from the
Company`s 2001 acquisitions who are supporting and continuing to develop and
expand the JDA product portfolio.
At the end of first quarter 2002, JDA had $76.4 million in cash and
marketable securities, an increase of 19% over the $64 million reported at
the end of last year, and had $20.6 million in deferred revenue. With $4.7
million in positive cash flow from operations and zero debt, JDA continues
to be in excellent financial condition. DSOs were at 95 days at March 31,
2002 compared to 91 days at December 31, 2001 and 96 days at March 31, 2001.
The four-day increase since year-end is due to a $2.8 million increase in
deferred maintenance revenue that has grossed up the receivables before the
revenue can be recognized.
CONFERENCE CALL INFORMATION
After the release of its quarterly earnings, JDA will hold a Conference Call
at approximately 4:45 pm Eastern Standard Time to discuss first quarter 2002
results. To participate in the call, dial 1-888-273-9887 (United States) or
1-612-332-0632 (International) and ask the operator for the "JDA First
Quarter Earnings Release." A replay of the conference call will begin April
22, 2002 at 11:00 pm EDT and will end on May 6, 2002 at 11:59 p.m. EDT.
Callers can hear the replay by dialing 1-800-475-6701 (United States) or
1-320-365-3844 (International) using Access 634827.
Additionally, interested parties can hear the call broadcast over the
Internet through the VCall web site, located at
http://www.vcall.com/EventPage.asp?ID=81103
. To listen to the live call,
please go to the web site on April 22, 2002 by 4:30 p.m. EDT 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
With more than 4,600 retail, manufacturing and wholesale clients in 60
countries, JDA Software Group, Inc. (Nasdaq:JDAS) is the global leader in
delivering integrated software and professional services for the retail
demand chain. By capitalizing on its market position and financial strength,
JDA commits significant resources to advancing JDA Portfolio, its suite of
merchandising, POS, analytic and collaborative solutions that improve
revenues, efficiency and customer focus. Founded in 1985, JDA is
headquartered in Scottsdale, Arizona and employs more than 1,400 associates
operating from 36 offices in major cities throughout North America, South
America, Europe, Asia and Australia. For more details, visit www.jda.com
>, call
1-800-479-RETAIL (7382) or email info@jda.com .
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This press release contains forward-looking statements that are made in
reliance upon the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements include: our
statement regarding possibly offering securities under the shelf
registration; Mr. Armstrong`s statement about our momentum with tier one
grocers; and Mr. Armstrong`s statements regarding our progress and
positioning in the collaborative marketplace; and our statement regarding
our belief that existing clients are actively recruiting new trading
partners for the collaborative marketplace, which could result in additional
sales opportunities for us. Future events may involve risks and
uncertainties, including, but not limited to, uncertainties about our
ability to: the impact on our published guidance if we issue securities
under the shelf registration since our published guidance does not reflect
any such effect; our ability to penetrate the tier one grocery market, which
requires software with robust performance and functionality; our ability to
meet key implementation milestones from existing tier one clients,
particularly since most of these milestones involve very complex and
rigorous technical tasks, such as achieving specified performance criteria
at high transaction volumes; our ability to grow our collaborative business,
particularly since as a new and emerging market it is difficult to predict
how the collaborative market is very unpredictable will grow, what
competitive forces we will face, and to what extent our existing partners
will generate for us additional sales opportunities; and other risks
detailed from time to time in the "Risk Factors" section of our filings with
the Securities and Exchange Commission. As a result of these and other
risks, actual results may differ materially from those predicted. We
undertake no obligation to update information in this release.
"JDA" and "JDA Portfolio are trademarks or registered trademarks of JDA
Software Group. Any trade, product or service name referenced in this
document using the name "JDA" is a trademark and/or property of JDA Software
Group. All other trade, product, or service names referenced in this release
may be trademarks or registered trademarks of their respective holders`.
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