EX-99.2 3 p72206exv99w2.htm EX-99.2 exv99w2
 

Exhibit 99.2

•
•
•  JDA Software Group, Inc.
•  NEWS RELEASE
•
JDA Investor Relations Contacts:
Lawrence Delaney, Jr., The Berlin Group
Tel: 714-734-5000; larry@berlingroup.com
Kristen L. Magnuson, Executive Vice President & Chief Financial Officer, JDA Software Group, Inc.
Tel: 480-308-3000


 
JDA Announces First Quarter 2006 Results
Scottsdale, Ariz. – April 24, 2006 – JDA® Software Group, Inc. today announced financial results for the first quarter ended March 31, 2006. JDA reported total revenues of $47.9 million and software revenues of $7.1 million for first quarter 2006, compared to total revenues of $50.3 million and software revenues of $10.2 million for first quarter 2005.
     JDA reported GAAP net income for first quarter 2006 of $0.02 per share, as compared to a GAAP net income of $0.02 per share in first quarter 2005. The Company reported adjusted non-GAAP earnings for first quarter 2006 of $0.06 per share, which excludes amortization of acquired software technology and intangibles and a discrete tax item benefit resulting from a change in estimate, as compared to adjusted non-GAAP earnings per share of $0.08 for first quarter 2005, which excluded amortization of acquired software technology and intangibles, a restructuring charge and adjustments to acquisition-related reserves, and discrete tax item benefits.
     “The first quarter was a disappointing start to 2006 with a significant number of deals failing to close in our projected timeframe,” commented Hamish Brewer, JDA Chief Executive Officer. “During first quarter we closed some deals that slipped out of the fourth quarter 2005. However, most of those fourth quarter deals remain open in second quarter and we have added some new deals that slipped during first quarter to our list. We are retaining our annual guidance for software, total revenue and earnings growth in 2006 based on this continued pipeline of deals.”
FIRST QUARTER 2006 HIGHLIGHTS
  •   Licensing of Next Generation Products: JDA signed two new agreements with existing customers in first quarter for its next generation applications on the PortfolioEnabled® framework. South African retailer Mr. Price Group Limited signed for Portfolio Replenishment Optimization by E3® and Enterprise Planning by Arthur®. US-based specialty retailer Hot Topic licensed Enterprise Planning by Arthur.
  •   Regional Sales Activity: The Americas closed $5.3 million in software license deals in first quarter 2006, compared to $10.2 million in fourth quarter 2005 and $6.5 million in first quarter 2005. Europe, Middle East and Africa closed $1.7 million in software license deals in first quarter 2006, compared to $2.8 million in fourth quarter 2005 and $3.0 million in first quarter 2005. Asia Pacific
-more-

 

 

      closed $131,000 in software license deals in first quarter 2006, compared to $2.5 million in fourth quarter 2005 and $782,000 in first quarter 2005.
  •   Kohl’s and Grupo Elektra among Closed Deals: JDA signed 59 new software deals during the first quarter, including five deals for two or more JDA Portfolio software applications and one deal greater than $1 million. Current customers that signed licenses in first quarter 2006 include: Grupo Elektra, S.A. de C.V., Kohl’s Department Stores, Inc., Charlotte Russe Holdings, Inc. and VIP Discount Auto Center.
  •   Strong Cash Generation: JDA ended first quarter 2006 with $118.0 million in cash and marketable securities as compared to $111.5 million at December 31, 2005. JDA generated $5.1 million in cash flow from operations during first quarter 2006 as compared to $5.8 million in first quarter 2005. DSOs were 81 days at the end of first quarter 2006, compared to 69 days at the end of fourth quarter 2005.
Conference Call and Webcast Information for Today’s Announcements
     JDA will host a conference call and web cast at 4:45 pm Eastern today to discuss the pending acquisition of Manugistics Group, Inc. and first quarter 2006 earnings results. 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 Software Group First Quarter 2006 Earnings Release Conference Call.” A replay of the conference call will begin Monday, April 24, 2006 at 6:45 pm (Eastern) and will end on May 24, 2006 at 12:00 pm (Eastern). You can hear the replay by dialing 1-877-519-4471 (United States) or 1-973-341-3080 (International) using pin number 7194044.
     To participate in the live Web cast of the call, which will include a presentation, visit the following web page at the time of the conference call: http://viavid.net/dce.aspx?sid=00002F09. A replay of the Web cast will be available approximately 10 minutes after the conclusion of the event.
ABOUT JDA SOFTWARE
     JDA® Software Group, Inc. (Nasdaq:JDAS) is the global leader in helping more than 4,900 retail, manufacturing and wholesale customers in 60 countries realize real demand chain results. By capitalizing on its market position and financial strength, JDA commits significant resources to advancing the JDA Portfolio® suite of demand chain solutions. JDA Portfolio software enables high performance planning, promoting, flowing, pricing, managing and selling of finished goods from the supplier warehouse to the consumer. With offices in major cities around the world, JDA employs the industry’s most experienced demand chain experts to develop, deliver and support its solutions. For more information, visit jda.com, email info@jda.com or call 1-800-479-7382.
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260

 

 

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. Brewer’s statement that JDA will retain its annual guidance for software, total revenue and earnings growth in 2006 based on its continued pipeline of deals. Future events may involve risks and uncertainties, including, but not limited to, uncertainties inherent in predicting closure of software transactions and future earnings results, particularly in volatile markets and industries such as our own, as well as the risk of increased competition 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’.
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260

 

 

JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
                 
    March 31,     December 31,  
    2006     2005  
    (Unaudited)          
ASSETS
                
Current Assets:
                
Cash and cash equivalents
   $ 71,002     $ 71,035  
Marketable securities
     47,024       40,472  
 
            
Total cash, cash equivalents and marketable securities
     118,026       111,507  
 
                
Accounts receivable, net
     43,067       42,415  
Deferred tax asset
     4,165       4,361  
Prepaid expenses and other current assets
     9,366       8,142  
Promissory note receivable
     —       1,213  
 
            
Total current assets
     174,624       167,638  
 
                
Property and Equipment, net
     42,027       42,825  
 
                
Goodwill
     60,531       60,531  
 
                
Other Intangibles, net:
                
Customer lists
     23,882       24,775  
Acquired software technology
     14,486       15,739  
Trademarks
     2,391       2,391  
 
            
 
     40,759       42,905  
 
                
Deferred Tax Asset
     16,690       16,673  
 
            
 
                
Total assets
   $ 334,631     $ 330,572  
 
            
 
                
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
 
                
Current Liabilities:
                
Accounts payable
   $ 1,819     $ 1,768  
Accrued expenses and other liabilities
     16,221       18,677  
Income tax payable
     746       1,386  
Deferred revenue
     32,117       26,775  
 
            
Total current liabilities
     50,903       48,606  
 
                
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 30,334,092 and 30,222,983 shares, respectively
     303       302  
Additional paid-in capital
     258,986       257,816  
Deferred compensation
     (720 )     (725 )
Retained earnings
     39,459       38,972  
Accumulated other comprehensive loss
     (1,042 )     (1,188 )
 
            
 
     296,986       295,177  
Less treasury stock, at costs, 1,165,547 and 1,162,202 shares, respectively
     (13,258 )     (13,211 )
 
            
Total stockholders’ equity
     283,728       281,966  
 
            
Total liabilities and stockholders’ equity
   $ 334,631     $ 330,572  
 
            
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260

 

 

JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except earnings per share data, unaudited)
                 
    Three Months Ended  
    March 31,  
    2006     2005  
REVENUES:
                
Software licenses
   $ 7,143     $ 10,217  
Maintenance services
     21,653       21,706  
 
            
Product revenues
     28,796       31,923  
 
                
Consulting services
     17,408       16,914  
Reimbursed expenses
     1,649       1,414  
 
            
Service revenues
     19,057       18,328  
 
                
Total revenues
     47,853       50,251  
 
            
 
                
COST OF REVENUES:
                
Cost of software licenses
     392       225  
Amortization of acquired software technology
     1,253       1,299  
Cost of maintenance services
     5,963       5,613  
 
            
Cost of product revenues
     7,608       7,137  
 
                
Cost of consulting services
     12,054       12,951  
Reimbursed expenses
     1,649       1,414  
 
            
Cost of service revenues
     13,703       14,365  
 
                
Total cost of revenues
     21,311       21,502  
 
            
 
                
GROSS PROFIT
     26,542       28,749  
 
                
OPERATING EXPENSES:
                
Product development
     10,758       11,676  
Sales and marketing
     8,216       9,402  
General and administrative
     6,965       5,529  
Amortization of intangibles
     893       849  
Restructuring charge and adjustments to acquisition-related reserves
     —       1,559  
 
            
Total operating expenses
     26,832       29,015  
 
            
 
                
OPERATING LOSS
     (290 )     (266 )
 
                
Other income, net
     930       516  
 
            
 
                
INCOME BEFORE INCOME TAX PROVISION (BENEFIT)
     640       250  
 
                
Income tax provision (benefit)
     153       (453 )
 
            
 
                
NET INCOME
   $ 487     $ 703  
 
            
 
                
BASIC EARNINGS PER SHARE
   $ .02     $ .02  
 
            
DILUTED EARNINGS PER SHARE
   $ .02     $ .02  
 
            
 
                
SHARES USED TO COMPUTE:
                
Basic earnings per share
     29,105       29,152  
 
            
Diluted earnings per share
     29,674       29,526  
 
            
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260

 

 

JDA SOFTWARE GROUP, INC.
NON-GAAP MEASURES OF PERFORMANCE
(in thousands, except share data, unaudited)
                 
    Three Months  
    Ended March 31,  
    2006     2005  
 
                
NON-GAAP OPERATING INCOME
                
 
                
Operating loss (GAAP BASIS)
   $ (290 )   $ (266 )
 
                
Adjustments for non-GAAP measures of performance:
                
 
                
Amortization of acquired software technology
     1,253       1,299  
Amortization of intangibles
     893       849  
Restructuring charge and adjustments to acquisition-related reserves
     —       1,559  
 
            
 
                
Adjusted non-GAAP operating income
   $ 1,856     $ 3,441  
 
            
 
                
NON-GAAP OPERATING INCOME, as a percentage of revenue
                
 
                
Operating loss (GAAP BASIS)
     (1 %)     (1 %)
 
                
Adjustments for non-GAAP measures of performance:
                
 
                
Amortization of acquired software technology
     3 %     3 %
Amortization of intangibles
     2 %     2 %
Restructuring charge and adjustments to acquisition-related reserves
     — %     3 %
 
                
Adjusted non-GAAP operating income
     4 %     7 %
 
                
NON-GAAP EARNINGS (LOSS) PER SHARE
                
 
                
Diluted earnings per share (GAAP BASIS)
   $ .02     $ .02  
 
                
Adjustments for non-GAAP measures of performance, net of tax:
                
 
                
Amortization of acquired software technology
     .03       .03  
Amortization of intangibles
     .02       .02  
Restructuring charge and adjustments to acquisition-related reserves
     —       .03  
Discrete tax item benefits
     (.01 )     (.02 )
 
            
Adjusted non-GAAP diluted earnings per share
   $ .06     $ .08  
 
            
 
                
Shares used to compute diluted earnings per share amounts (GAAP BASIS)
     29,674       29,526  
Shares used to compute adjusted non-GAAP diluted earnings per share amounts
     29,674       29,526  
 
                
CASH FLOW INFORMATION
                
 
                
Net cash provided by operating activities
   $ 5,067     $ 5,841  
 
                
Net cash used in investing activities:
                
Net purchase of marketable securities
   $ (6,526 )   $ (427 )
Purchase of other property and equipment
     (742 )     (1,579 )
Payments received on promissory note receivable
     1,213       1,052  
Other, net
     (106 )     (104 )
 
            
 
   $ (6,161 )   $ (1,058 )
 
            
 
                
Net cash (used in) provided by financing activities:
                
Issuance of common stock – equity plans
   $ 894     $ 649  
Purchase of treasury stock
     (47 )     (2,151 )
Other, net
     6       (11 )
 
            
 
   $ 853     $ (1,513 )
 
            
 
 
JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260