JDA Software Group, Inc.
NEWS RELEASE EXHIBIT 99.2
 
Investor Relations Contacts:
Lawrence Delaney, Jr., The Berlin Group
Tel: 714-734-5000; larry@berlingroup.com
 
Kris Magnuson, Exec. VP/CFO
JDA Software Group, Inc; Tel: 480-308-3000

JDA Software Announces First Quarter 2003 Results

Scottsdale, Ariz. – April 21, 2003 – JDA® Software Group, Inc. today announced financial results for the first quarter ended March 31, 2003. JDA reported first quarter 2003 revenues of $41.3 million and software revenues of $7.7 million, compared to total revenues of $59.1 million and software revenues of $19.5 million in first quarter 2002. The Company also reported a GAAP net loss of $2.2 million, or $0.08 per share in first quarter 2003, as compared to net income of $4.5 million, or $0.16 per share in first quarter 2002. These results are consistent with the preliminary first quarter 2003 results announced on April 2, 2003.

     The adjusted non-GAAP loss for first quarter 2003 was $0.02 per share, excluding amortization of intangibles ($1.8 million) and relocation costs to consolidate development and support activities ($682,000), compared with adjusted non-GAAP income of $0.20 per share in first quarter 2002, excluding amortization of intangibles ($1.8 million). Cash flow from operations on a per share basis increased by 12% to $0.18 per share in first quarter 2003 from $0.16 per share in first quarter 2002.

     “Our retail customers and their suppliers are being directly impacted by uncertain macro economic conditions. As a result, our software licenses declined compared to first quarter 2002,” commented Jim Armstrong, CEO. “This decrease in revenues was offset in part by the cost savings we realized from the reorganization of the Company in fourth quarter 2002 to re-align our cost structure and implement the Customer Value Program.”

     “Because JDA remains financially strong, we can continue our significant investments in our customer relations program, our associates’ professional growth and our product development, which will position our Company for returned growth when the market improves,” added Armstrong.

FIRST QUARTER 2003 HIGHLIGHTS

• Customer Value Program Advancements: JDA made a substantial investment in its educational center, the Business Management Institute, during the first quarter by expanding professional growth opportunities for its associates. More than 480 associates attended a two and one-half day Portfolio Framework class, offered in 13 offices around the world, to gain a business level understanding of JDA’s comprehensive products and integrated processes that will facilitate improved utilization. Plus 32 customer-facing teams established their charters detailing goals and metrics related to increasing customer value. Over 68% of our direct global sales associates also participated in an intensive two and one-half day sales training course.

• Release of Portfolio 2003.5: The Company launched JDA Portfolio 2003.5, the second major synchronized release of its comprehensive collection of products, in first quarter. Portfolio 2003.5

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JDA Software Announces First Quarter 2003 Results
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delivered expanded integration with JDA’s acquired and internally developed applications as well as with third party software including PkMS^®, Manhattan Associates’ (Nasdaq: MANH) leading supply chain execution solution. JDA also made significant progress with its .Net migration.

     JDA ended the first quarter 2003 with $105.7 million in cash and marketable securities versus $101.9 million at December 31, 2002. The Company generated $5.1 million in cash flow from operations in first quarter 2003 compared to $4.7 million in first quarter 2002. DSOs were 81 days at March 31, 2003 compared to 96 days at March 31, 2002.

CONFERENCE CALL INFORMATION

     JDA will hold a conference call to discuss fourth quarter results on April 21, 2003 at 4:45 pm EDT. To participate in the call, dial 1-800-921-9431 (United States) or 1-973-935-8505 (International) and ask the operator for the “JDA First Quarter 2003 Earnings.” A replay of the conference call will begin April 21, 2003 at 9:00 pm EDT and will end on May 5, 2003 at 12:00 am EDT. Callers can hear the replay by dialing 1-877-519-4471 (United States) or 1-973-341-3080 (International) using Access 3822466.

     To participate in a Web cast of the call visit www.vcall.com/EventPage.asp?ID=82954.

ABOUT JDA SOFTWARE

     With more than 4,800 retail, wholesale and manufacturing 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 1,200 associates operating from 31 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more details, visit www.jda.com, call 1-800-479-7382 or email info@jda.com.

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We do not believe this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Nevertheless, some statements, such as Mr. Armstrong’s statement that because JDA remains financially strong, the Company can continue its significant investments in customer relations programs, associates’ professional growth and product development, which will position the Company for returned growth when the market improves, could be seen to have forward-looking implications. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: the risk to our operating results of ongoing uncertain economic conditions and the inherent unpredictability on a quarterly basis of retailers’ demands for our products and services; the risk that the CVP initiative will not result in expected benefits, and could result in disruptions to our development, implementation and sales activities due to our reduction in force; 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

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

			March 31,		December 31,
			2003		2002
CASH AND INVESTMENTS			$	105,748	$	101,855
ACCOUNTS RECEIVABLE, net				36,984		47,077
OTHER CURRENT ASSETS				28,164		25,517
PROPERTY AND EQUIPMENT, net				21,778		21,337
GOODWILL AND OTHER INTANGIBLES, net				114,655		116,436
PROMISSORY NOTE RECEIVABLE				2,976		3,017
		Total assets	$	310,305	$	315,239
DEFERRED REVENUE			$	29,773	$	23,331
OTHER CURRENT LIABILITIES				21,427		29,977
DEFERRED TAX LIABILITY				4,180		5,165
STOCKHOLDERS’ EQUITY				254,925		256,766
	Total liabilities and stockholders’ equity		$	310,305	$	315,239

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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except share data, unaudited)

			Three Months
			Ended March 31,
			2003			2002
REVENUES:
	Software licenses		$	7,703		$	19,533
	Maintenance			16,444			13,016
		Product revenues		24,147			32,549
	Consulting services			15,601			24,571
	Reimbursed expenses			1,507			2,030
		Services revenues		17,108			26,601
		Total revenues		41,255			59,150
COST OF REVENUES:
	Cost of software licenses, excluding amortization of acquired software technology			241			411
	Cost of maintenance			3,916			3,398
		Cost of product revenues		4,157			3,809
	Cost of consulting services			14,060			17,830
	Reimbursed expenses			1,507			2,030
		Cost of services revenues		15,567			19,860
		Total cost of revenues		19,724			23,669
GROSS PROFIT				21,531			35,481
OPERATING EXPENSES:
	Product development			10,180			10,401
	Sales and marketing			7,567			9,390
	General and administrative			5,309			7,477
		Total operating expenses		23,056			27,268
INCOME (LOSS) FROM OPERATIONS, excluding amortization of intangibles and relocation costs to consolidate development and support activities				(1,525	)		8,213
	Amortization of intangibles, including acquired software technology			1,781			1,751
	Relocation costs to consolidate development and support activities			682			—
OPERATING INCOME (LOSS)				(3,988	)		6,462
	Other income, net			545			581
INCOME (LOSS) BEFORE INCOME TAXES				(3,443	)		7,043
	Income tax (benefit) provision			(1,205	)		2,498
NET INCOME (LOSS)			$	(2,238	)	$	4,545
BASIC EARNINGS (LOSS) PER SHARE			$	(.08	)	$	.17
DILUTED EARNINGS (LOSS) PER SHARE			$	(.08	)	$	.16
SHARES USED TO COMPUTE PER SHARE AMOUNTS:
Basic				28,452			27,383
Diluted				28,452			28,983

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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands, except share data, unaudited)

		Three Months
		Ended March 31,
		2003			2002
NON-GAAP MEASURES OF PERFORMANCE:
NON-GAAP EARNINGS (LOSS) PER SHARE:
DILUTED EARNINGS (LOSS) PER SHARE (GAAP BASIS)		$	(.08	)	$	.16
Adjustments for other non-GAAP measures of performance, net of tax:
	Add back amortization of intangibles	$	.04		$	.04
	Add back relocation costs to consolidate development and support activities	$	.02			—
Adjusted non-GAAP earnings (loss) per share		$	(.02	)	$	.20
CASH FLOW PER SHARE FROM OPERATIONS		$	.18		$	.16

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