8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 27, 2010

JDA Software Group, Inc.

(Exact name of registrant as specified in its charter)

Delaware	0-27876	86-0787377
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

14400 North 87th Street Scottsdale, Arizona	85260-3649
(Address of principal executive offices)	(Zip Code)

(480) 308-3000
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

     On July 27, 2010, JDA Software Group, Inc. (“JDA”) announced financial results for the second quarter ended June 30, 2010 by issuing a press release and holding a related conference call to discuss these results. The full text of the press release issued in connection with the announcement is attached as Exhibit No. 99.1 to this Current Report on Form 8-K. The press release and the conference call contain forward-looking statements regarding JDA and include cautionary statements identifying important factors that could cause actual results to differ materially from those anticipated.

     The information in this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Use of Non-GAAP Financial Information

     JDA provides a non-GAAP measure of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and earnings per share in the attached press release. The presentation is intended to be a supplemental measure of performance and typically excludes non-cash charges such as amortization of intangibles, stock-based compensation and certain charges that impact the comparability of one quarter to another. The presentation is not intended to replace or to be displayed more prominently than our GAAP measurements. A reconciliation of the adjustments to GAAP results for the periods is included. In addition, an explanation of the ways in which JDA management uses these non-GAAP measures to evaluate its business, the substance behind JDA management’s decision to use these non-GAAP measures, the material limitations associated with the use of these non-GAAP measures, the manner in which JDA management compensates for those limitations, and the substantive reasons why JDA management believes that these non-GAAP measures provide useful information to investors is included in the attached press release.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits

99.1 Press Release dated July 27, 2010.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	JDA Software Group, Inc.
Date: July 27, 2010
	By:	/s/ Pete Hathaway
		Pete Hathaway
		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

EXHIBIT	DESCRIPTION
99.1	Press Release dated July 27, 2010.

EX-99.1

Exhibit 99.1

•
•
• •	JDA Software Group, Inc. NEWS RELEASE	Contact Information at End of Release
•
•

JDA Software Announces Second Quarter 2010 Results

Record Revenue Confirms Acquisition Rationale

Scottsdale, Ariz. — July 27, 2010 — JDA^® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company^®, today announced financial results for the second quarter ended June 30, 2010. JDA reported record total revenues of $158.4 million, a 59 percent increase from $99.5 million of revenue reported in second quarter 2009. Software license and subscription revenues in the second quarter 2010 increased 38 percent to $38.0 million from $27.6 million in second quarter 2009.

          Adjusted EBITDA increased 44 percent to $41.3 million in second quarter 2010 from $28.7 million in the second quarter of 2009. JDA also reported adjusted non-GAAP earnings per share for second quarter 2010 of $0.48, an increase from the $0.47 per share reported in second quarter 2009. Adjusted non-GAAP earnings exclude amortization of acquired software technology and intangibles, restructuring charges, stock-based compensation and costs related to the acquisition and transition of i2. GAAP net income for second quarter 2010 was $7.9 million or $0.19 per share, compared to GAAP net income of $8.9 million or $0.25 per share in second quarter 2009.

          Results for 2010 include the completion of the acquisition of i2 Technologies, Inc. (i2) as of January 28, 2010.

          “Record license sales were a primary feature of the second quarter and once again the contribution from i2 products was significant,” said JDA president and chief executive officer Hamish Brewer. “Six months into the integration of i2, we fully expected to be delivering the cost synergies we are seeing, but this accelerated license revenue growth is far better than we had planned. Further work remains to be done, but so far the integration process is going very well.”

Software and Subscription

          Software and subscription revenue increased 38 percent to $38.0 million in the second quarter 2010 from $27.6 million in the second quarter 2009. This increase was driven by the acquisition of i2 and by strong sales in the Americas region, which continued to show a strong pipeline. The average sales price for the trailing 12 months ended June 30, 2010 was $608,000 compared to $618,000 for the trailing 12 months ended March 31, 2010.

JDA Software Q2 2010 Earnings
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Maintenance and Support Services

          Maintenance revenue increased 37 percent to $60.6 million in the second quarter 2010 from $44.4 million in the second quarter 2009. This increase was driven primarily by the acquisition of i2 and the year-over-year improvement in retention rates. The annualized retention rate in the second quarter 2010 increased to 97.3 percent from 93.8 percent in the second quarter 2009. The renewal rate in 2009 was negatively impacted by the adverse economic conditions, and the current year renewals are trending better than JDA historical averages. Maintenance gross margins increased to 76 percent in the current quarter from 75 percent in the second quarter 2009 primarily due to increased software sales with maintenance attachments and a greater proportion of maintenance being performed in the more cost effective Centers of Excellence (“CoE”) in India.

Consulting Services

          Consulting services revenue increased 117 percent to $59.8 million in the second quarter 2010 from $27.5 million in the second quarter 2009. This increase was primarily due to the acquisition of i2 and increased implementation services work associated with larger JDA software product sales in 2009. Consulting services gross margins increased to 24 percent in second quarter 2010 from 18 percent in the second quarter 2009. This increase was driven primarily by the higher volume of consulting services revenue together with higher margin projects and greater utilization of the lower cost CoE resources.

Other Financial Data

• Operating expenses as a percent of revenue show the operating leverage effects of the i2 acquisition. Product development expenses as a percent of revenue improved to 12 percent in the second quarter 2010 compared to 13 percent in the second quarter 2009. Sales and marketing expenses as a percent of revenue improved to 15 percent in the second quarter 2010 compared to 16 percent in the second quarter 2009. General and administrative expenses increased as a percent of revenue to 13 percent in the second quarter 2010 compared to 12 percent in the second quarter 2009. This increase is primarily due to increased legal fees in connection with ongoing litigation and increased headcount from the i2 acquisition.

• DSO improved to 66 days at the end of second quarter 2010 from 74 days at the end of first quarter 2010. Compared to the second quarter in the prior year, DSO increased from 57 days primarily due to the receivables acquired from i2. JDA continues to apply its focused collection process to the new receivables as a part of the overall company integration process, with the goal of reducing the overall DSO.

• Net interest and other expense for the second quarter 2010 increased to $6.8 million from $0.3 million in the second quarter of 2009 due to interest on the senior notes issued in connection with the i2 acquisition and currency rate changes.

JDA Software Q2 2010 Earnings
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• Cash flow from operations was a use of ($2.6) million in second quarter 2010 compared to positive cash flow from operations of $27.5 million in second quarter 2009. The negative cash flow was caused by realized deferred revenues from the i2 acquisition where the cash was collected prior to the acquisition close date combined with an increase in receivables and deferred expenses.

• Cash and cash equivalents, including restricted cash, were $158.0 million at June 30, 2010, compared to $363.8 million at December 31, 2009, which included net proceeds from the issuance of $275.0 million of senior notes that were used to complete the acquisition of i2 on January 28, 2010.

• Weighted average shares outstanding for the quarter ended June 30, 2010 were 42.3 million.

Second Quarter 2010 Highlights

            The following presents a high-level summary of JDA’s regional sales performance:

• JDA reported $27.1 million in software license and subscription revenues in its Americas region during second quarter 2010, compared to $18.9 million in first quarter 2010 and $14.4 million in second quarter 2009. Customers that signed new software licenses in second quarter 2010 include: Dick’s Sporting Goods, Inc., Guitar Center, Inc. Boscov’s Department Store, LLC, Ripley’s Comercial ECSSA S.A., Sodimac Chile S.A., IFH Retail and Tiendas Peruanas, Michaels Stores, Inc., Syms Corporation, Liz Claiborne, Inc., Delhaize America, Inc. and VMR Electronics, LLC.

• Software license and subscription revenues in the Europe, Middle East and Africa (EMEA) region were $4.8 million in second quarter 2010, compared to $5.4 million in first quarter 2010 and $5.0 million in second quarter 2009. New software deals in the EMEA region included: Esselunga SpA, Crai Secom SpA, and Renault SA.

• JDA’s Asia-Pacific region posted software license and subscription revenues of $6.1 million in second quarter 2010, compared to $4.4 in first quarter 2010 and $8.2 million in second quarter 2009. Wins in this region included: JFE Steel Corporation and Lenovo Group Ltd.

Six Months Ended June 30, 2010 Results

• Revenue for the six months ended June 30, 2010 increased 59 percent to $290.0 million from $182.8 million for the six months ended June 30, 2009. Adjusted EBITDA increased to $72.7 million for the first six months ended June 30, 2010 from $45.4 million in the first half of 2009. The increases were primarily driven by the acquisition of i2 Technologies and growth in the core business.

JDA Software Q2 2010 Earnings
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• Adjusted non-GAAP earnings per share for the six months ended June 30, 2010 was $0.87 compared to $0.73 per share for the six months ended June 30, 2009. Adjusted non-GAAP earnings exclude amortization of acquired software technology and intangibles, restructuring charges, stock-based compensation and costs related to the acquisition and transition of i2.

• The GAAP net income applicable to common shareholders for the six months ended June 30, 2010 was $3.6 million or $0.09 per share, compared to net income of $11.6 million or $0.33 per share for the six months ended June 30, 2009. The decrease was primarily due to costs related to the acquisition and transition of i2.

• Cash flow from operations was $9.6 million for the six months ended June 30, 2010 compared to cash flow from operations of $60.5 million for the six months ended June 30, 2009. The change in operating cash flow in the current period was caused by realized deferred revenues from the i2 acquisition where the cash was collected prior to the acquisition close date, an increase in receivables and deferred expenses and payments related to acquisition accruals.

Conference Call Information

          JDA Software Group, Inc. will host a conference call at 4:45 p.m. Eastern time today to discuss earnings results for its second quarter ended June 30, 2010. To participate in the call, dial 1-877-941-8416 (United States) or 1-480-629-9808 (International) and ask the operator for the “JDA Software Group, Inc. Second Quarter 2010 Earnings Conference Call.” A live audio webcast of the conference call can be accessed by logging onto www.jda.com in the Investor Relations section.

          A replay of the conference call will begin on July 27, 2010 at 8:00 p.m. Eastern time and will end on August 27, 2010. To hear a replay of the call over the Internet, access JDA’s website at www.jda.com.

About JDA Software Group, Inc.

          JDA^® Software Group, Inc. (NASDAQ: JDAS), The Supply Chain Company^®, is a leading global provider of innovative supply chain management, merchandising and pricing excellence solutions. JDA empowers more than 6,000 companies of all sizes to make optimal decisions that improve profitability and achieve real results in the discrete and process manufacturing, wholesale distribution, transportation, retail and services industries. With an integrated solutions offering that spans the entire supply chain from materials to the consumer, JDA leverages the powerful heritage and knowledge capital of acquired market leaders including i2 Technologies^®, Manugistics^®, E3^®, Intactix^® and Arthur^®. JDA’s multiple service options provide customers with flexible configurations, rapid time-to-value, lower total cost of ownership and 24/7 functional and technical support and expertise. To learn more, visit www.jda.com or e-mail info@jda.com.

JDA Software Q2 2010 Earnings
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JDA Investor Relations Contacts:
Pete Hathaway, Executive Vice President/Chief Financial Officer
480-308-3000

JDA Software Q2 2010 Earnings
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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts, unaudited)

	June 30,			December 31,
	2010			2009
ASSETS
Current Assets:
Cash and cash equivalents	$	146,179		$	75,974
Restricted cash		11,780			287,875
Accounts receivable, net		116,091			68,883
Deferred tax asset		57,630			19,142
Prepaid expenses and other current assets		33,251			15,667
Total current assets		364,931			467,541
Non-Current Assets:
Property and equipment, net		44,648			40,842
Goodwill		197,813			135,275
Other Intangibles, net:
Customer-based intangibles		156,614			99,264
Technology-based intangibles		41,161			20,240
Marketing-based intangibles		13,226			157
Deferred tax asset		269,421			44,350
Other non-current assets		17,381			13,997
Total non-current assets		740,264			354,125
Total Assets	$	1,105,195		$	821,666
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	14,423		$	7,192
Accrued expenses and other liabilities		68,840			45,523
Income taxes payable		3,152			3,489
Deferred revenue		121,818			65,665
Total current liabilities		208,233			121,869
Non-Current Liabilities:
Long-term debt		272,451			272,250
Accrued exit and disposal obligations		6,626			7,341
Liability for uncertain tax positions		10,306			8,770
Deferred revenue		14,601			—
Total non-current liabilities		303,984			288,361
Total Liabilities		512,217			410,230
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 43,628,080 and 36,323,245 shares, respectively		436			363
Additional paid-in capital		554,579			361,362
Deferred compensation		(12,783	)		(5,297	)
Retained earnings		77,612			74,014
Accumulated other comprehensive income (loss)		(1,014	)		3,267
Less treasury stock, at cost, 1,920,105 and 1,785,715 shares, respectively		(25,852	)		(22,273	)
Total stockholders’ equity		592,978			411,436
Total liabilities and stockholders’ equity	$	1,105,195		$	821,666

JDA Software Q2 2010 Earnings
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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share data, unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
REVENUES:
Software licenses	$	32,152		$	26,589		$	56,589		$	40,946
Subscriptions and other recurring revenues		5,806			996			10,093			1,964
Maintenance services		60,594			44,371			117,654			87,368
Product revenues		98,552			71,956			184,336			130,278
Consulting services		55,255			25,079			98,257			48,113
Reimbursed expenses		4,566			2,450			7,411			4,427
Service revenues		59,821			27,529			105,668			52,540
Total revenues		158,373			99,485			290,004			182,818
COST OF REVENUES:
Cost of software licenses		909			1,235			1,917			1,837
Amortization of acquired software technology		1,803			980			3,379			1,988
Cost of maintenance services		14,227			10,984			26,260			21,533
Cost of product revenues		16,939			13,199			31,556			25,358
Cost of consulting services		40,742			20,131			76,011			39,513
Reimbursed expenses		4,566			2,450			7,411			4,427
Cost of service revenues		45,308			22,581			83,422			43,940
Total cost of revenues		62,247			35,780			114,978			69,298
GROSS PROFIT		96,126			63,705			175,026			113,520
OPERATING EXPENSES:
Product development		19,481			12,664			36,758			25,237
Sales and marketing		24,460			16,170			45,572			30,422
General and administrative		19,801			11,670			37,498			22,696
Amortization of intangibles		9,915			6,051			18,481			12,127
Restructuring charges		4,548			2,732			12,306			4,162
Acquisition-related costs		865			—			7,608			—
Total operating expenses		79,070			49,287			158,223			94,644
OPERATING INCOME		17,056			14,418			16,803			18,876
Interest expense and amortization of loan fees		(6,182	)		(386	)		(12,268	)		(625	)
Interest income and other, net		(642	)		123			481			(120	)
INCOME BEFORE INCOME TAXES		10,232			14,155			5,016			18,131
Income tax provision		2,366			5,220			1,418			6,552
NET INCOME	$	7,866		$	8,935		$	3,598		$	11,579
BASIC EARNINGS PER SHARE	$	.19		$	.26		$	.09		$	.33
DILUTED EARNINGS PER SHARE	$	.19		$	.25		$	.09		$	.33
SHARES USED TO COMPUTE:
Basic earnings per share		41,672			35,004			40,514			34,983
Diluted earnings per share		42,265			35,232			41,151			35,154

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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
CASH FLOW INFORMATION
Net cash provided by (used in) operating activities:
Net Income	$	7,866		$	8,935		$	3,598		$	11,579
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		14,862			9,431			28,010			18,842
Provision for doubtful accounts		500			300			500			300
Amortization of loan fees		495			—			922			—
Share-based compensation expense		3,292			2,157			6,569			3,567
Net gain on disposal of property and equipment		(4	)		(38	)		(9	)		(54	)
Deferred income taxes		2,242			4,663			(304	)		5,670
Changes in assets and liabilities, net of effects from business acquisitions:
Accounts receivable		(7,645	)		3,226			(14,856	)		16,820
Income tax receivable		955			(586	)		2,031			(1,434	)
Prepaid expenses and other current assets		(6,022	)		(3,918	)		(13,911	)		(6,882	)
Accounts payable		3,084			2,665			3,634			7,139
Accrued expenses and other liabilities		(2,974	)		1,912			(14,075	)		(13,507	)
Income tax payable		(1,610	)		248			(3,737	)		365
Deferred revenue		(17,668	)		(1,541	)		11,196			18,107
	$	(2,627	)	$	27,454		$	9,568		$	60,512
Net cash provided by (used in) investing activities:
Change in restricted cash	$	(82	)	$	—		$	276,095		$	—
Purchase of i2 Technologies, Inc		—			—			(213,427	)		—
Payment of direct costs related to acquisitions		(789	)		(669	)		(1,639	)		(1,489	)
Purchase of other property and equipment		(5,864	)		(404	)		(6,397	)		(1,407	)
Proceeds from disposal of property and equipment		332			38			349			54
	$	(6,403	)	$	(1,035	)	$	54,981		$	(2,842	)
Net cash provided by financing activities:
Issuance of common stock under equity plans	$	706		$	2,136		$	11,610		$	4,642
Purchase of treasury stock and other, net		(366	)		(680	)		(3,758	)		(3,899	)
	$	340		$	1,456		$	7,852		$	743
Effect of exchange rates on cash		(948	)		1,785			(2,196	)		1,566
Net increase (decrease) in cash and cash equivalents		(9,638	)		29,660			70,205			59,979
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		155,817			63,015			75,974			32,696
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	146,179		$	92,675		$	146,179		$	92,675

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JDA SOFTWARE GROUP, INC.
NON-GAAP MEASURES OF PERFORMANCE
(in thousands, except share data, unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2010			2009			2010			2009
Reconciliation of GAAP Net Income to EBITDA and Adjusted EBITDA
Net Income (GAAP BASIS)	$	7,866		$	8,935		$	3,598		$	11,579
Income tax provision		2,366			5,220			1,418			6,552
Interest expense and amortization of loan fees		6,182			386			12,268			625
Amortization of acquired software technology		1,803			980			3,379			1,988
Amortization of intangibles		9,915			6,051			18,481			12,127
Depreciation		3,144			2,400			6,150			4,727
EBITDA (earnings before interest, tax, depreciation and amortization)		31,276			23,972			45,294			37,598
Restructuring charges		4,548			2,732			12,306			4,162
Stock-based compensation		3,292			2,157			6,569			3,567
Acquisition-related costs		865			—			7,608			—
Non-recurring transition costs to integrate acquisition		723			—			1,440			—
Interest income and other non-operating (income) expense, net		642			(123	)		(481	)		120
Adjusted EBITDA	$	41,346		$	28,738		$	72,736		$	45,447
EBITDA, as a percentage of revenue		20	%		24	%		16	%		21	%
Adjusted EBITDA, as a percentage of revenue		26	%		29	%		25	%		25	%
NON-GAAP EARNINGS PER SHARE
Income before income taxes (GAAP BASIS)	$	10,232		$	14,155		$	5,016		$	18,131
Amortization of acquired software technology		1,803			980			3,379			1,988
Amortization of intangibles		9,915			6,051			18,481			12,127
Restructuring charges		4,548			2,732			12,306			4,162
Stock-based compensation		3,292			2,157			6,569			3,567
Acquisition-related costs		865			—			7,608			—
Non-recurring transition costs to integrate acquisition		723			—			1,440			—
Adjusted income before income taxes		31,378			26,075			54,799			39,975
Adjusted income tax expense		10,982			9,387			19,180			14,252
Adjusted net income	$	20,396		$	16,688		$	35,619		$	25,723
Adjusted non-GAAP diluted earnings per share	$	0.48		$	0.47		$	0.87		$	0.73
Shares used to compute non-GAAP diluted earnings per share		42,265			35,232			41,151			35,154

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JDA SOFTWARE GROUP, INC.
SUPPLEMENTAL DATA
(dollars in thousands)

Software & Subscription Revenues by Geographic Region

	Three Months Ended
	6/30/2010		3/31/2010		12/31/2009		9/30/2009		6/30/2009
Americas	$	27,080	$	18,917	$	19,084	$	12,624	$	14,357
EMEA		4,773		5,403		6,417		4,084		5,012
Asia/Pacific		6,105		4,404		3,125		542		8,216
Total	$	37,958	$	28,724	$	28,626	$	17,250	$	27,585

Business Segment Data

	Three Months Ended
	6/30/2010			3/31/2010			12/31/2009			9/30/2009			6/30/2009
Supply Chain
Total Revenues	$	152,931		$	125,233		$	99,410		$	88,608		$	88,161
Operating Income		52,638			39,904			33,882			29,054			29,127
Operating Income Margin		34	%		32	%		34	%		33	%		33	%
Services Industry
Total Revenues	$	5,442		$	6,398		$	7,713		$	7,251		$	11,324
Operating Income (Loss)		(453	)		607			986			1,027			5,744
Operating Income Margin		(8	%)		9	%		13	%		14	%		51	%

New vs. Install-Base Software Sales and Subscription Revenues

	Three Months Ended
	6/30/2010				3/31/2010				12/31/2009				9/30/2009				6/30/2009
New Sales	$	8,080	21	%	$	8,415	29	%	$	4,515	16	%	$	3,317	19	%	$	10,066	36	%
Install-Base Sales		29,878	79	%		20,309	71	%		24,111	84	%		13,933	81	%		17,518	64	%
Total	$	37,958			$	28,724			$	28,626			$	17,250			$	27,584

ASP, Multi-Product Deals & Large Deal Counts

	Last Twelve Months Ended
	6/30/2010		3/31/2010		12/31/2009		9/30/2009		6/30/2009
Average Sales Price (ASP)	$	608	$	618	$	630	$	733	$	819
Multiple-Product Deals		18		21		20		19		18
Large Deal Count (>= $1 million )		25		24		19		16		19
Quota Carrying Sales Representatives		92		96		75		75		72

JDA Software Q2 2010 Earnings
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Summary of Revenue Contribution in Second Quarter 2010

	JDA				i2				Combined
Software and Subscription Revenues	$	21,728	57	%	$	16,230	43	%	$	37,958
Maintenance Revenues		45,417	75	%		15,177	25	%		60,594
Product Revenues		67,145	68	%		31,407	32	%		98,552
Service Revenues		38,294	64	%		21,527	36	%		59,821
Total Revenues	$	105,439	67	%	$	52,934	33	%	$	158,373

Summary of Revenue Contribution in First Half 2010

Software and Subscription Revenues	$	37,606	56	%	$	29,076	44	%	$	66,682
Maintenance Revenues		91,908	78	%		25,746	22	%		117,654
Product Revenues		129,514	70	%		54,822	30	%		184,336
Service Revenues		70,295	67	%		35,373	33	%		105,668
Total Revenues	$	199,809	69	%	$	90,195	31	%		290,004

“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995

          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, our statements regarding our record revenue confirming our rationale for the i2 acquisition, any implication of future sales results from our strong sales pipeline in the Americas, and Mr. Brewer’s statements regarding license revenue growth from i2 products and the progress of our i2 integration efforts. We remind our investors and prospective investors that future events may involve risks and uncertainties. Risks and uncertainties that may affect our business are detailed from time to time in the “Risk Factors” section and other sections 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, except as required by law.

Use of Non-GAAP Financial Information

          This press release and the related conference call contain non-GAAP financial measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP. Management’s presentation of non-GAAP financial measures is intended to be supplemental in nature and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures.

Use and Economic Substance of Non-GAAP Financial Measures Used by JDA

     The Company uses non-GAAP measures of performance, including adjusted net income, EBITDA (earnings before interest, taxes, depreciation and amortization) and earnings per share, in its public statements. Management uses, and chooses to disclose, these non-GAAP financial measures because (i) such measures provide an additional analytical tool to clarify the Company’s results from operations and help the Company to identify underlying trends in its results of operations; (ii) the Company uses non-GAAP earnings measures, including EBITDA, as a measure of profitability because such measures help the Company compare its performance on a consistent basis across time periods; and (iii) these non-GAAP measures are employed by the Company’s management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting. The Company also internally uses adjusted EBITDA measures for determining (a) compliance with certain financial covenants in its credit agreement and (b) executive and employee compensation. Set forth below are additional reasons why specific items are excluded from the Company’s non-GAAP financial measures:

JDA Software Q2 2010 Earnings
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• Amortization charges for acquired software technology are excluded because they result from prior acquisitions, rather than ongoing operations, and absent additional acquisitions, are expected to decline over time.

• Amortization charges for other intangibles are excluded because they are non-cash expenses, and while tangible and intangible assets support our business, we do not believe the related amortization costs are directly attributable to the operating performance of our business.

• Restructuring charges are significant non-routine expenses that cannot be predicted and typically relate to a change in our business model or to a change in our estimate of the costs to complete a plan to exit an activity of an acquired company. The exclusion of these charges promotes period-to-period comparisons and transparency. Such charges are primarily related to severance costs and/or the disposition of excess facilities driven by the changes to our business model.

• Stock-based compensation is not an expense that typically requires or will require cash settlement by the Company.

• Acquisition-related costs associated with the acquisition of i2 and the non-recurring transition costs to integrate the acquisition are significant non-routine expenses. Exclusion of these costs promotes period-to-period comparisons and transparency as we do not believe these costs are directly attributable to the operating performance of our business.

Material Limitations (and Compensation thereof) Associated with the Use of Non-GAAP Financial Measures

          Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP results. In the future, the Company expects to continue reporting non-GAAP financial measures excluding items described above and the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above. Accordingly, exclusion of these and other similar items in our non-GAAP presentation should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

Some of the limitations in relying on non-GAAP financial measures are:

• Amortization of acquired technology and intangibles, though not directly affecting our current cash position, represent the loss in value as the technology in our industry evolves, is advanced or is replaced over time. The expense associated with this loss in value is not included in the non-GAAP net income presentation and therefore does not reflect the full economic effect of the ongoing cost of maintaining our current technological position in our competitive industry which is addressed through our research and development program.

• The Company may engage in acquisition transactions in the future. In addition, we incur other restructuring charges from time to time when necessary to adjust our business model. Restructuring related charges may therefore continue to be incurred and should not be viewed as non-recurring.

• Stock-based compensation is an important component of our incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future.

• Other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure.

     We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP financial measures only supplementally. We also provide reconciliations of each non-GAAP financial measure to our most directly comparable GAAP measure, and we encourage investors to review carefully those reconciliations.

Usefulness of Non-GAAP Financial Measures to Investors

          The Company believes that the presentation of these non-GAAP financial measures is warranted for several reasons. First, such non-GAAP financial measures provide investors and management an additional analytical tool for understanding the Company’s financial performance by excluding the impact of items which may obscure trends in the core operating performance of the business. Second, since the Company has historically reported non-GAAP results to the investment community, the Company believes the inclusion of non-GAAP numbers provides consistency and enhances investors’ ability to compare the Company’s performance across financial reporting periods.