Scottsdale, Ariz. — July 20, 2009 — JDA® Software Group, Inc. (NASDAQ: JDAS) today announced financial results for the second quarter ended June 30, 2009. JDA reported total revenues of $99.5 million and software revenues of $27.6 million for second quarter 2009, compared to total revenues of $91.8 million and software revenues of $15.5 million for second quarter 2008. For the six months ended June 30, 2009, JDA reported total revenues of $182.8 million and software revenues of $42.9 million, compared to total revenues of $185.7 million and software revenues of $35.6 million for the six months ended June 30, 2008.
Second Quarter 2009 Financial Summary
“We posted a strong performance in second quarter 2009 with record financial and operating results across almost every key metric,” said JDA CEO Hamish Brewer. “We have delivered record breaking software sales in three of the last four quarters. These results are driving growth for the company in a tough environment and we have started to see the turn around in our consulting services metrics that we previously forecasted.”
“JDA’s market leadership and proven value proposition are well recognized in our market. While many of our competitors are retrenching, we are taking this opportunity to seize market share by expanding our business both organically, such as our recently announced growth plans in China, and through our recently announced investment in Strategix to increase our presence in Central and Eastern Europe and Russia,” added Brewer.
Second Quarter 2009 Highlights
Six Month 2009 Results
Conference Call Information
JDA Software Group, Inc. will host a conference call at 4:45 p.m. (Eastern) today to discuss earnings results for its second quarter ended June 30, 2009. To participate in the call, dial 1-877-941-6009 (United States) or 1-480-629-9771 (International) and ask the operator for the "JDA Software Group, Inc. Second Quarter 2009 Earnings Conference Call." To participate in the webcast, visit the following Web page at the time of the conference call: http://viavid.net/dce.aspx?sid=00006685
A replay of the conference call will begin Monday, July 20, 2009 at 7:45 p.m. (Eastern) and will end on Thursday, August 20, 2009 at 11:59 p.m. (Eastern). You can hear the replay by dialing 1-800-406-7325 (United States) or 1-303-590-3030 (International) using access 4106219.
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is the world’s leading supply chain solutions provider, helping companies optimize operations and improve profitability. JDA drives business efficiency for its global customer base of more than 5,800 retailers, manufacturers, wholesaler-distributors and services industries companies through deep domain expertise and innovative solutions. JDA's combination of unmatched services, together with its integrated yet modular solutions for merchandising, supply chain planning and execution and revenue management, leverage the strong heritage and knowledge capital of market leaders including Manugistics, E3, Intactix and Arthur. When supply chain results matter, companies turn to JDA. For more information about JDA, visit www.jda.com or contact us at firstname.lastname@example.org or call +1.800.479.7382 / +1.480.308.3000.
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“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, Mr. Brewer’s statements regarding a turn around in our consulting services business, and our attempts to seize market share. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (i) the possibility that, despite strong software sales, our consulting services business will continue to underperform against our expectations; (ii) our attempts to seize market share in our fiercely competitive markets will not be successful; and (iii) 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.
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 operating 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:
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:
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.