• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • Manugistics Acquisition Powers Growth for JDA in the Fourth Quarter

    February 5, 2007 Timothy Prickett Morgan

    JDA Software, which supplies software for retailers who run their applications on i5/OS or Windows platforms, announced its fourth quarter 2006 financial results, and thanks in part to the acquisition of supply chain specialist Manugistics, JDA was able to show pretty impressive growth.

    JDA said that for the fourth quarter ended December 31, it had total revenues of $88.6 million, up 61 percent from the $55.1 million in sales for software, services, and maintenance that the company posted in the fourth quarter of 2005. Sales of products and services from the Manugistics line, which became part of JDA when Manugistics’ shareholders agreed to the $213 million all-cash takeover bid in July 2006, accounted for $39.6 million in overall sales, with $6.6 million of that being for software licenses. What this means, of course, is that the core JDA revenues actually declined in the quarter, dropping 11 percent to $49 million. JDA’s overall software license sales in the quarter (including JDA and Manugistics lines) came to $17.7 million, up 14 percent compared to the year ago period thanks to the Manugistics products, but if you extract the Manugustics software sales out, then the JDA product line saw only $11.1 million in sales during the fourth quarter, a drop of 29 percent from last year’s $15.6 million in sales.

    JDA was obviously very excited to get ahold of Manugistics, so it could have two different products to sell into its retail base–store management and back office systems as well as supply chain management solutions. Companies who have one usually have to upgrade the other, and they don’t like to do them at the same time. So the combination should allow JDA to have a more balanced performance going forward. The retail sector is notoriously choppy when it comes to sales, mainly because retailers’ IT budgets are subject to the capriciousness of consumers to a certain extent. When we all spend less, they have less to invest in IT. JDA said that during the quarter it inked a big global agreement with furniture retailer Ikea and another big deal with office products retailer OfficeMax, and that it signed 58 new software deals in total.

    The Manugistics acquisition did take its toll on profits during the quarter and for the full year, however. Thanks to a hefty maintenance services business from Manugistics, JDA reported total maintenance revenues of $43 million in the fourth quarter, nearly double those of JDA alone. Consulting services and reimbursed expenses accounted for another $27.9 million in sales. When you add it all up, JDA actually had a gross profit of $54.9 million in the quarter. After taking out operating expenses–including $2.2 million in restructuring charges and $3.5 million in amortization of intangibles–JDA had an operating profit of $3.7 million, but after investment, stock conversion expenses, and income taxes were taken into account, JDA booked a loss of $1.2 million.

    For the full 2006 year, JDA had sales of $277.5 million, with $49 million in software license sales, $129.3 million in maintenance fees, and $99.2 million in services revenues. The company booked a loss of $10.7 million. JDA exited the quarter with $53.6 million in cash and equivalents.

    RELATED STORIES

    JDA Emphasizes VARs to Attack the Retail Sector

    JDA Software Buys Supply Chain Specialist Manugistics

    Intel Partnership Doesn’t Hurt iSeries Strategy, JDA Software Says



                         Post this story to del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags: Tags: mtfh_rc, Volume 16, Number 5 -- February 5, 2007

    Sponsored by
    VISUAL LANSA 16 WEBINAR

    Trying to balance stability and agility in your IBM i environment?

    Join this webinar and explore Visual LANSA 16 – our enhanced professional low-code platform designed to help organizations running on IBM i evolve seamlessly for what’s next.

    🎙️VISUAL LANSA 16 WEBINAR

    Break Monolithic IBM i Applications and Unlock New Value

    Explore modernization without rewriting. Decouple monolithic applications and extend their value through integration with modern services, web frameworks, and cloud technologies.

    🗓️ July 10, 2025

    ⏰ 9 AM – 10 AM CDT (4 PM to 5 PM CEST)

    See the webinar schedule in your time zone

    Register to join the webinar now

    What to Expect

    • Get to know Visual LANSA 16, its core features, latest enhancements, and use cases
    • Understand how you can transition to a MACH-aligned architecture to enable faster innovation
    • Discover native REST APIs, WebView2 support, cloud-ready Azure licensing, and more to help transform and scale your IBM i applications

    Read more about V16 here.

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Idiom Translates Globalization Software into Strong Growth RevSoft Pushes ‘Lights On’ Approach to Systems Automation

    Leave a Reply Cancel reply

TFH Volume: 16 Issue: 5

This Issue Sponsored By

    Table of Contents

    • Faster i5 595 Rumored to Be Imminent
    • IBM Moves OS/400 V5R3 Towards the Door, Rejiggers i5 Prices
    • Zend Upgrades Commercial Add-Ons for Its PHP Engine
    • As I See It: The Elusive Leader
    • Calling All System i5 Innovators
    • System i5 GM Shearer Chats with iSociety Members
    • Avnet’s Second Fiscal Quarter Propped Up By EMEA Sales
    • Sales Up 16 Percent in Q1 as Kronos Launches Wares for Manufacturers
    • SafeData, Strategic Systems Form Partnership
    • IBM X-Force Says For-Profit Cyber Attacks to Increase in 2007

    Content archive

    • The Four Hundred
    • Four Hundred Stuff
    • Four Hundred Guru

    Recent Posts

    • Liam Allan Shares What’s Coming Next With Code For IBM i
    • From Stable To Scalable: Visual LANSA 16 Powers IBM i Growth – Launching July 8
    • VS Code Will Be The Heart Of The Modern IBM i Platform
    • The AS/400: A 37-Year-Old Dog That Loves To Learn New Tricks
    • IBM i PTF Guide, Volume 27, Number 25
    • Meet The Next Gen Of IBMers Helping To Build IBM i
    • Looks Like IBM Is Building A Linux-Like PASE For IBM i After All
    • Will Independent IBM i Clouds Survive PowerVS?
    • Now, IBM Is Jacking Up Hardware Maintenance Prices
    • IBM i PTF Guide, Volume 27, Number 24

    Subscribe

    To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

    Pages

    • About Us
    • Contact
    • Contributors
    • Four Hundred Monitor
    • IBM i PTF Guide
    • Media Kit
    • Subscribe

    Search

    Copyright © 2025 IT Jungle