Paul Demery , Managing Editor, B2B E-commerce
Casino Group, The Sports Authority, AEON Co., Ltd and Energizer Among Existing Customers to License Additional JDA Portfolio Applications
Scottsdale, Ariz. – July 25, 2005 – JDA® Software Group, Inc. announced several of the companies that signed software license agreements for JDA Portfolio® products in second quarter 2005. Existing JDA customers such as Casino Group, The Sports Authority, Grupo Elektra, S.A. de C.V., Twentieth Century Fox Home Entertainment, Inc. and Energizer licensed additional JDA applications. Hibbett Sporting Goods, 2nd Swing Golf and Urban Brands are among the new customers to sign first time license agreements with JDA.
“Two major trends characterized the second quarter licensing activity. First, we have started to see growing demand for our new PortfolioEnabled® products and we were able to translate that demand into two new licenses from existing JDA customers in second quarter,” stated JDA CEO Hamish Brewer. “Second, we have started to see a surge of interest in our Merchandise Operations solutions. Demand for these products has been depressed over the past couple of years with the marketplace focused on Strategic Merchandise Management solutions. This improvement comes at an ideal time as JDA is now clearly differentiated as our competitors simply cannot provide the same level of effectiveness or the low total cost of ownership that JDA can deliver,” added Brewer.
Among the nine new Portfolio Merchandise Operations deals that JDA signed in second quarter are the following customers: AEON Co., Ltd, Urban Brands, Almacenes Paris Comercial S.A., Hibbett Sporting Goods and The Metropolitan Museum of Art.
“We also continued to see a steady stream of wins with our Portfolio Strategic Merchandise Management™ applications. JDA has a distinct and unique competitive advantage in this area because our customers realize rapid ROI with the advanced planning, allocation, replenishment, category management and revenue management processes that we can support. Combined with the 275 companies now conducting more than $4.5 billion of trading volume using our collaborative solutions, our second quarter software performance indicates that we are increasing our strong competitive position in the global demand chain market,” stated Brewer.
Two New Licenses for JDA’s New PortfolioEnabled Replenishment Software
Casino Group, a $29 billion food retailer with more than 8,300 stores in 11 countries, signed a significant license agreement for JDA’s new Portfolio Replenishment Optimization by E3® (PRO) software, part of the new PortfolioEnabled suite of products. An existing JDA customer, Casino plans to migrate to PRO to achieve a more holistic approach to supply chain management that will increase efficiency, improve accuracy and reduce costs through optimized practices across its business. Concurrently, Casino signed an agreement for Seasonal Profiling by Intellect™ (SPI), an advanced optimization application that delivers demand intelligence for precise forecasting and replenishment. Mr. Price Group Limited, a value clothing and homeware retailer in South Africa, also signed a JDA license agreement that will enable it to implement PRO.
New Merchandise Operations Customers Sign for Multiple JDA Products
Several of the retailers that signed first time license agreements with JDA for its Portfolio Merchandise Management™ (PMM™) application also signed for numerous other JDA solutions. In addition to PMM, Urban Brands, a leading specialty apparel retailer, signed for Performance Analysis by IDEAS™, Demand Planning by Intellect™ and the Arthur® Merchandise Planning suite. In Chile, existing customer Almacenes Paris Comercial S.A., one of the country’s largest department store retailers, licensed PMM along with Advanced Allocation by Arthur® and Advanced Store Replenishment by E3® (ASR). Also, existing JDA customer AEON Co., Ltd, Japan’s largest retail group with sales of $38 billion, licensed Portfolio Registry™ and the latest version of PMM.
In addition to signing for Portfolio Merchandise Management System-I™ (MMS®), Hibbett Sporting Goods, a rapidly growing sporting goods retailer, and The Metropolitan Museum of Art, a world-class art museum with average annual attendance of over five million visitors, signed for IDEAS™ and Arthur Merchandise Planning applications. The Metropolitan Museum of Art also licensed Win/DSS® store system and Portfolio Customer Relationship Management™. New MMS customer PETSENSE, Inc., a specialty animal products retailer, also licensed Win/DSS and Portfolio Mobile Access™. 2nd Swing Golf, the United States’ fastest growing retail golf company, licensed MMS as well as IDEAS. JDA will also provide full operational and hosting services to 2nd Swing through its Total Solutions Provider (TSP) product and hardware hosting services. Shanghai Home Expo Co., Ltd., a leading Chinese retailer of high quality home furnishings, licensed MMS.
JDA Signs Advanced Replenishment Contracts with Companies Worldwide
Several existing customers signed for Advanced Replenishment by E3® applications along with other JDA solutions. Baker & Taylor, Inc., a $1.3 billion global information and entertainment services company, signed for Vendor Managed Replenishment by E3®, Space Planning by Intactix® and Shelf Assortment by Intactix®. The company also expanded its Advanced Warehouse Replenishment by E3® (AWR) license agreement. Dick Blick Art Supplies, a premier art-supplies retailer with 33 stores nationwide, also expanded its AWR license and signed for Space and Floor Planning by Intactix® as well as IDEAS. STAPLES Business Depot/Bureau En Gros, Canada’s leader in office supplies, signed for AWR. Additionally, Grupo Elektra, S.A. de C.V., a $2.35 billion specialty retailer and financial services company in Latin America, signed a license for AWR to support its international operations. In Mexico,
Grupo Comercial Chedraui S.A. de C.V., a $1.22 billion hypermarket and Mexico’s fifth-largest retailer, significantly expanded its ASR license agreement. Also, to optimize its AWR investment, $1.96 billion Distribución y Servicio D&S;, Chile’s biggest supermarket chain, licensed SPI to obtain a finer degree of replenishment accuracy. New customers signing for Advanced Replenishment applications include Italy-based Ferramenta Fraschetti S.p.A., a building materials supplier, and MIT S.r.l., a cell phone retailer.
Existing Customers Select JDA Planning and Store Systems
JDA’s cross selling initiatives continue to result in licenses with its existing customers for additional applications. Bargain Shop Holdings, Inc., a leading Canadian general merchandise retailer, signed for Merchandise Planning by Arthur®. Bargain Shop, GRI Asia Limited, a Hong Kong-based fashion retailer, and several other current Arthur customers licensed JDA’s proven Arthur RAPIDS™ methodology in second quarter to speed their implementation project and more quickly gain benefit from the planning applications.
Additionally, existing customers, Ollie’s Bargain Outlet, Inc. licensed Portfolio CRM™ and Innovation Luggage signed for Win/DSS and Portfolio Mobile Access store systems.
JDA Expands Presence in Consumer Goods with Category Management Solutions
In North America, several JDA customers extended their investments in JDA’s market leading Portfolio Category Management applications, including Space Planning by Intactix. These customers include Party City Corp., Twentieth Century Fox Home Entertainment and Miller Brewing Company. Other companies expanding their category management investment in JDA’s Americas region include 3M Consumer Products, Dreyers Grand Ice Cream, Southern Wine & Spirits Union City, Badger Liquor Company, Flowers Foods Bakeries Group, InterState Bakeries Corporation, FedEx Kinko’s Inc., Test Rite Products Corp., American Tack & Hardware, Bayer HealthCare, LLC, Central Garden & Pet, Judge & Dolph, Johnson & Johnson Canada and McCain Foods (Canada). In JDA’s Europe, Middle East and Africa (EMEA) region, customers include Grampian Country Food Group, Ltd., HJ Heinz Co. Ltd., Lenta and Ahold Central Europe, s.r.o. In JDA’s Asia Pacific region, Wrigley Chewing Gum Co. and Cork International expanded their Intactix license agreements.
Companies making a first-time investment in Portfolio Category Management software include: The Sports Authority, VF Diltex, S. de R.L. de C.V., a division of VF Corporation, Wellington Cordage, HP Hood LLC, Pass & Seymour, Legrand, Rainier Fruit Co., a division of Rainier Fruit Sales Inc., the UK’s CDS (Superstores International) Limited, Hills Pet Nutrition Ltd., JDH Solutions Ltd. and Australia’s The Heat Group.
Additionally, several manufacturers licensed Portfolio Collaborative Solutions™ to synchronize activity with their retail customers. These companies include Amerock, a division of Newell Rubbermaid, Inc., Black & Decker, Energizer, Novartis Consumer Health, Inc., Ranir, Rust-Oleum Corporation and US Cotton LLC. As a result of second quarter license activity, 275 trading partner pairs rely on JDA solutions to support more than $4.5 billion in trade volume, up from more than 230 trading partners in second quarter 2004.
Existing Customers Return to JDA for More Value
Several other JDA customers expanded their existing license agreements in second quarter 2005 to drive more value from their JDA investments. A partial listing of these customers based in JDA’s Americas region include the following: Balkamp, Inc., Province of British Columbia Liquor Distribution Branch, Coach, Fido Solutions Inc., Fleet Wholesale Supply Co. Inc., Interamerican Motor Corporation, Jensen Distribution Services, McKesson Canada Corporation, PFG Customized Distribution, Princess Auto Ltd., Seneca Medical, Inc., Sport Chalet Inc. and VF Services, Inc. In JDA’s EMEA region these customers include Axfood AB, Etam Groep BV and The Foschini Retail Group (Pty) Ltd. In Asia Pacific, LGL Holdings Pty. Ltd. and Puregold Price Club, Inc. expanded their JDA agreements.
Other companies signed for one or more Portfolio products or expanded their license agreements with JDA in second quarter 2005. Due to the competitive advantages of implementing Portfolio solutions, these companies have requested confidentiality.
About JDA Software Group, Inc.
With more than 4,700 retail, manufacturing and wholesale customers in 60 countries, JDA Software Group, Inc. (Nasdaq:JDAS) is a 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 approximately 1,100 associates operating from 26 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more information, visit www.jda.com, email firstname.lastname@example.org or call 1-800-479-7382.
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. Forward-looking statements are generally accompanied by words such as “will,” and “expect” and other words with forward-looking connotations. In this press release, such forward-looking statements include, without limitation, Mr. Brewer’s claim that we see growing demand for our PortfolioEnabled products; any implication that an increase in demand will lead to new licenses; our assertion that the market for our merchandise operations products is improving; and our claim that we are increasing our position in the demand chain market. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (a) The possibility that potential clients may elect competing solutions, particularly given that only a small number of initial versions of our PortfolioEnabled products have been completed and none have yet been fully implemented; (b) the risk that implementation may be more difficult or costly than anticipated, or that customers will not realize expected benefits; (c) the danger that competing merchandise operations solutions may gain market share, or that demand for merchandise operations solutions will not increase in future quarters; (d) the risk that retailers and their suppliers may prefer alternative collaborative solutions; and (e) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. Additional information relating to the uncertainty affecting our business is contained in our filings with the SEC.
As a result of these and other risks, actual results may differ materially from those predicted. JDA is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
"JDA,” “JDA Portfolio,” “Portfolio,” “PortfolioEnabled”, “Win/DSS”, “Arthur,” “E3,” ”Intactix,” “Strategic Merchandise Management”, “Portfolio Customer Relationship Management,” “Portfolio CRM,” “MMS,” Merchandise Management System-I,” “Store Portal for MMS”, “Performance Analysis by Arthur”, “Merchandise Planning by Arthur,” “Arthur Planning”, “RAPIDS”, “Seasonal Profiling by Intellect”, “Portfolio Collaborative Solutions”, “Portfolio Space Management”, “Portfolio Space Management Solutions by Intactix,” “Space Planning by Intactix”, “Advanced Replenishment by E3”, “Demand Planning by Intellect,” “Advanced Allocation by Arthur,” “Advanced Store Replenishment by E3”, “Portfolio Registry”, “Portfolio Mobile Access”, “Vendor Managed Replenishment by E3”, “Shelf Assortment by Intactix”, “Space Planning by Intactix”, “Floor Planning by Intactix”, “Portfolio Replenishment Optimization by E3”, “Portfolio Merchandise Management”, “PMM”, “Advanced Warehouse Replenishment by E3,” “Performance Analysis by IDEAS,” and “IDEAS” are trademarks or registered trademarks of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name "JDA" is a trademark and/or property of JDA Software Group, Inc.
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