Scottsdale, Ariz. – January 22, 2002 –
JDA® Software Group, Inc. (Nasdaq:JDAS) today announced financial results for the fourth quarter and year ended December 31, 2001. The fourth quarter was a record quarter for JDA in a number of respects. Software sales achieved record levels at $23.4 million, and total revenues at $60.5 million exceeded JDA’s previous best quarter by more than $10 million. JDA continued to grow its momentum in Tier One, and built upon its fast growing business in the grocery retail sector. Revenues from acquisitions made during 2001 were important contributors, reinforcing JDA’s strategy of consolidating the retail software sector, and delivering substantial return on investments. In addition to new software transactions, JDA achieved record annual consulting and maintenance revenues of $135.7 million, including consulting and support revenue growth rates of 21% and 34%, respectively.
Quarterly pro forma income, excluding amortization of intangibles and other merger related charges, was $5.4 million, or $0.20 per share, a 150% increase over pro forma fourth quarter 2000 and 66% over Wall Street analysts’ pro forma projections of $0.12. Net income for fourth quarter 2001 was $3.3 million or $0.12 per share, an increase of over 250% from the $928,000 or $0.04 reported for fourth quarter 2000. Total software revenues increased 68% to a record $23.4 million, including $8.6 million from E3, which was acquired September 7, 2001. Total revenues increased 41% to $60.5 million, including $14.3 million from E3.
“Thanks to our well established JDA products being so firmly entrenched in the retail market and our improving execution, we have exceeded financial expectations in this past quarter,” commented JDA CEO Jim Armstrong. “Retailers are investing in exactly the type of revenue and inventory optimization applications that we can deliver with our ever expanding JDA Portfolio suite.”
“We’ve successfully executed on our goal to actively pursue the new markets that our 2000 and 2001 acquisitions opened up for us. In fourth quarter 2001, nearly 25% of our software license revenues came from manufacturing, wholesale and distribution customers. We view these complementary markets as having strong growth potential. In addition, the acquisition of new products has helped diversify our revenue base. It’s becoming increasingly clear that we have a competitive advantage in our ability to bring together retailers and their suppliers and improve ROI for both ends of the global demand chain.”
ANNUAL REVENUES FOR 2001
JDA reported record annual revenues of $206.9 million, a 21% increase over the $171.7 million reported in 2000. Software revenues for the year increased by 14%, with JDA closing $71.2 million in software deals in 2001 as compared to $62.6 million in 2000. JDA achieved record consulting and maintenance revenues of $95.1 million and $40.6 million, which represent increases of 21% and 34% over 2000, respectively.
Income, excluding amortization of intangibles, purchased in-process research and development, restructuring, asset disposition and other merger related charges, for 2001 was $17.3 million, or $.67 per share compared to pro forma net income of $13.5 million or $.53 per share in 2000. JDA reported net income of $9.6 million, or $0.37 per share for 2001 versus $8.9 or $0.35 per share in 2000.
RECENT AND FOURTH QUARTER HIGHLIGHTS
SALES: JDA continues to exploit back-selling opportunities with 60% of fourth quarter 2001 software revenue coming from existing clients. JDA also realized impressive gains in the U.S. with software licenses in fourth quarter 2001 increasing by more than 280%, excluding E3, compared to fourth quarter 2000.
RAPID ACCEPTANCE OF E3: JDA proved the value of its September 7th 2001 acquisition of E3 Corporation with $8.6 million in global software licenses, including key accounts in nearly every region.
ALLIANCES: JDA signed a strategic agreement with Manhattan Associates to offer its shared clients the ability to capitalize on planning, merchandising, and extended supply chain execution functionality from a single, integrated suite of solutions. Manhattan Associates provides extended supply chain execution solutions that enhance distribution efficiencies through the integration of supply chain constituents.
R&D: JDA invested heavily in research and development spending $10 million in fourth quarter 2001, a 26% increase over fourth quarter 2000.
With $7.0 million and $27.7 million in positive cash flow from operations in fourth quarter and year ended December 31, 2001, respectively and zero debt, JDA continues to be in excellent financial condition. JDA ended 2001 with $64.0 million in cash and marketable securities and $17.6 million in deferred revenue. DSOs were at 91 days at December 31, 2001 compared to 114 days at December 31, 2000.
CONFERENCE CALL INFORMATION
JDA plans to host a conference call to discuss the results and provide guidance regarding its 2002 financial results approximately 45 minutes after release of the quarterly earnings at 9:45 a.m. Eastern Standard Time. To participate in the call, dial 1-888-273-9885 (United States) or 1-612-332-0418 (International) and ask the operator for the “JDA Fourth Quarter Earnings Release.” A replay of the conference call will begin January 22, 2002 at 1:15 p.m. Eastern Standard Time and will end on February 5, 2002 at 11:59 p.m. Eastern Standard Time. You can hear the replay by dialing 1-800-475-6701 (United States) or 1-320-365-3844 (International) using Access 623134.
ABOUT JDA SOFTWARE GROUP, INC.
With more than 4,300 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 37 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more information, visit www.jda.com, call 1-800-479-7382 or email info@jda.com.
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: Mr. Armstrong’s statement that retailers are investing in products such as JDA Portfolio; Mr. Armstrong’s statement regarding growth potential in the new markets of manufacturing, wholesale, and distribution; and our belief that our heavy R&D investment in fourth quarter 2001 will help us successfully develop new profitable products, and enhance existing products. Future events may involve risks and uncertainties, including, but not limited to: the risk that retailers will not continue to invest in products such as JDA Portfolio, particularly given that many of these retailers may not have sufficient resources to purchase our products because of the economic recession; and the risk that our R&D investments will not result in new or enhanced products that are completed in a timely manner and for which there is significant market demand; 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" is a registered trademark 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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