• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • JDA Sales Hampered and Profits Slammed by Downturn in Q1

    April 27, 2009 Timothy Prickett Morgan

    Retail and supply chain management application software maker JDA Software reported its financial results for the first quarter, and like just about every other IT vendor on the planet, JDA was hit by the economic downturn, which hurt sales a little and profits a lot.

    For the quarter ended in March, JDA says that it had revenues of $83.3 million, down 11.2 percent, more or less matching the revenue decline that IBM itself saw in the first quarter of this year. JDA’s software licenses in the quarter fell by a much more dramatic 23.5 percent to $15.3 million, but maintenance services on software packages held up pretty well with a decline of 6.1 percent to just under $43 million. JDA’s services revenues fell by 10.8 percent in the quarter, to just over $25 million.

    JDA was only able to do a small amount of cost cutting, so the lower sales came right out of the bottom line. Gross profit fell by 14.2 percent to $49.8 million, and net income fell by 50.6 percent to $2.6 million.

    “We delivered a solid, profitable quarter with strong cash flows, which underscores the durable nature of our business model in these difficult times,” explained Hamish Brewer, JDA’s chief executive officer, in a statement accompanying the financial results. “We see continuing evidence that the market is focused on IT solutions that can reliably reduce working capital, improve margins, and minimize lost sales. This trend is good news for JDA as we are broadly recognized as the market leader proven to cost-efficiently deliver supply chain planning and optimization solutions that drive these results.”

    The company said that it closed 46 new software sales in the quarter, with three of them in excess of $1 million. By geography, software license sales in the Americas came in at $11.1 million, down 15.9 percent; in Europe, the Middle East and Africa were $3.2 million, down 31.9 percent; and in Asia/Pacific were $1 million, down a staggering 52.4 percent.

    JDA exited the quarter with $63 million in cash and equivalents, up from $32.7 million at the end of the fourth quarter of 2008, which is a huge jump. While this may not be a huge war chest with which the company can do major acquisitions, it is a decent sized cushion to help tide JDA through bumpy times ahead, should the IT seas get a little choppier than they already are.

    JDA has been spending some of its cash on buying back its own shares, and in the first quarter it shelled out $2.5 million to buy stock. This is used as compensation for employees and also boosts earnings per share figures a tiny bit–a practice that Big Blue has made an artform to appease EPS-obsessed Wall Street. JDA has a stock buyback program that runs out in March 2010 that allows the company to spend as much as $30 million on its own stock.

    RELATED STORIES

    JDA to Buy Back Shares as Retailers Hope for an Uptick in 2009

    Net Loss Doesn’t Prevent JDA’s Record Q4, Year

    JDA and i2 Call the Whole Thing Off

    JDA Shakes Off the Bad Economy, Sets Sales Record in Q3

    JDA Ponies Up $346 Million to Buy i2 Technologies

    JDA Software Has Its Best First Quarter Ever

    JDA Focuses on ‘Slow and Erratic’ Product Forecasting with E3

    JDA’s Sales and Profits Boosted By Manugistics, Organic Growth

    JDA Elaborates on Supply Chain Strategy, But Questions Remain

    JDA’s Development Roadmap Features iSeries in Supporting Role



                         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 18, Number 16 -- April 27, 2009

    Sponsored by
    ARCAD Software

    Join us for a webinar on August 25, 2022, with a presentation on how Git uses concurrent development and how it can scale to fit your development needs. You’ve heard mention of Git and now it’s time to answer the question. What is Git and Why? This should be a very informative and interesting webinar that could relate to you!

    Register Here

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Trouble-Shooting i5/OS Printer Problems in a Warehouse Environment Twitter from an AS/400? Kisco Lets You Do It

    Leave a Reply Cancel reply

TFH Volume: 18 Issue: 16

This Issue Sponsored By

    Table of Contents

    • IBM Launches Power6+ Servers–Again
    • Power Systems Down A Bit in IBM’s First Quarter
    • COMMON Europe Opens Up Global i Top Concerns Survey
    • Jilted Sun Snapped Up by Oracle for Application Systems
    • JDA Sales Hampered and Profits Slammed by Downturn in Q1
    • NSPI Taps Halcyon to Manage i Hosting Customers

    Content archive

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

    Recent Posts

    • Power10 Entry Machines: The Power S1024 And Power L1024
    • Thoroughly Modern: Latest IT Trends – Bring Security, Speed, And Consistency To IT With Automation
    • Big Blue Unveils New Scalable VTL For IBM i
    • As I See It: Thank God It’s Thursday
    • IBM i PTF Guide, Volume 24, Number 32
    • JD Edwards Customers Face Support Decisions
    • Security, Automation, and Cloud Top Midrange IT Priorities, Study Says
    • Cleo and SrinSoft in Integration-Modernization Link Up
    • Four Hundred Monitor, August 3
    • IBM i PTF Guide, Volume 24, Number 31

    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 © 2022 IT Jungle

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.