JDA Software Reports Preliminary Revenue Results for the Fourth Quarter 2011 and Earnings Expectations for the Full-Year 2011

Full-Year 2011 Revenue and Earnings Expected to be in Line with the Company's Original Guidance

Scottsdale, Ariz. - January 12, 2012 - JDA^®Software Group, Inc.(NASDAQ: JDAS) (“JDA” or “the Company”), The Supply Chain Company^®, today reported preliminary unaudited revenue for the fourth quarter ended December 31, 2011 is expected to be approximately $173 million, representing a 3% increase from the $168.8 million in revenue reported in the fourth quarter of 2010. For the year ended December 31, 2011, preliminary unaudited revenue is expected to increase 9% to approximately $670 million, which is in-line with the midpoint of the guidance range the Company provided for the full-year 2011. 
 
Although JDA has not yet finalized its financial results for the fourth quarter of 2011, based upon its preliminary analysis, the Company reconfirms its original guidance for full-year 2011. The Company expects:  

• Adjusted EBITDA tobe slightly above the midpoint of the Company’s guidance range;
• Adjusted earnings per share to be toward the high end of its guidance range; and,
• Free cash flow, excluding litigation settlements, to be at or above the top end of its guidance range. 

For clarity, the Company has included the original full-year 2011 guidance and the reconciliation from GAAP to non-GAAP guidance as originally presented on February 1, 2011, at the end of this press release.

JDA will host a conference call at 4:45 p.m. EDT today to discuss the preliminary unaudited results. The Company intends to formally issue its results for the fourth quarter of 2011 at 4:45 p.m. EDT on Tuesday, January 31, 2012. 

Software and Subscription Revenue
For the fourth quarter of 2011, total software and subscription revenue is expected to be approximately $37 million, a 12% decrease from the $42.0 million reported in the fourth quarter of 2010. Software and subscription sales in the Americas region are expected to decline to approximately $21 million for the quarter ended December 31, 2011, from $31.0 million in the fourth quarter 2010. This decrease in the Americas was partially offset by continued strength in the Europe, Middle East and Africa (EMEA) region, where fourth-quarter 2011 sales are expected to increase more than 50% to approximately $12 million, from $7.9 million in the fourth quarter 2010. Software and subscription revenue in the Asia-Pacific region for the fourth quarter of 2011 is expected to increase more than 10%, from $3.0 million in the fourth quarter of 2010. The Company closed eight deals in excess of $1 million in the fourth quarter 2011, compared to 10 deals valued at more than $1 million, in the fourth quarter of 2010.
 
For the year ended December 31, 2011, preliminary unaudited software and subscription revenue is expected to be approximately $141 million, an increase of about 8% from $130.7 million in 2010, but below the software and subscription revenue guidance range of $145 million to $160 million.
 
Maintenance and Support Services Revenue
In the fourth quarter of 2011, maintenance revenue is expected to increase 4% to approximately $67 million, from $64.4 million in the fourth quarter of 2010. This increase was due to a continued strong retention rate of approximately 95% and the high level of attachment of maintenance contracts to new license deals. For the year ended December 31, 2011, preliminary unaudited maintenance revenue is expected to increase 8% to approximately $266 million, from $246.2 million in 2010.
 
Consulting Services Revenue
In the fourth quarter 2011, consulting services revenue is expected to increase 9% to approximately $68 million, from $62.4 million in the fourth quarter 2010. For the year ended December 31, 2011, preliminary unaudited consulting services revenue is expected to increase 9% to approximately $262 million, from $240.3 million in 2010.
 
“Total revenue, adjusted EBITDA, adjusted EPS and free cash flow for the full-year 2011 are all expected to be consistent with, or better than our previous guidance,” said JDA President and Chief Executive Officer Hamish Brewer. “Nonetheless, we believed it was prudent to report to our shareholders the unanticipated shortfall we experienced in fourth quarter software license sales in North America, even as all other regions and all other revenue streams in North America were healthy and consistent with our expectations. We intend to use the first quarter to better understand our North American software customers’ spending plans for 2012, and will factor our conclusions into our longer-term outlook.”

Conference Call Information
JDA will host a conference call at 4:45 p.m. EDT today to discuss the preliminary unaudited results for its fourth quarter ended December 31, 2011. To participate in the call, dial 1-877-941-4774 (United States) or 1-480-629-9760 (International) and ask the operator for the JDA Software Group, Inc. 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 January 12, 2012 at approximately 7:45 p.m. EDT and will end on January 26, 2012. 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, delivered via the JDA^®Private Cloud, 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.comor e-mail info@jda.com.
 
JDA Investor Relations Contact:
Mike Burnett, GVP, Treasury and Investor Relations
mike.burnett@jda.com
480-308-3392
 
JDA Corporate Communications Contact:
Beth Elkin, Sr. Director, Corporate Communications
beth.elkin@jda.com
469-357-4225