• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • Addition of i2 Drives JDA Software’s Growth in Q2

    August 9, 2010 Timothy Prickett Morgan

    If it were not for a $246 million settlement in a Texas lawsuit relating to i2 Technologies prior to its acquisition by JDA Software, the retailing and supply software specialist would probably be popping champagne corks all over the boardroom in Scottsdale, Arizona. OK, maybe getting a few six packs of good beer, since sales were up but profits were not because of rising development costs and restructurings relating to the i2 acquisition.

    In the second quarter, JDA’s overall revenues were up 59.2 percent, to $158.4 million, but $9.9 million in amortization of intangibles and $4.5 million in restructuring charges drove down net income by 12 percent to $7.9 million in the quarter. Software license sales rose by 20.9 percent in the quarter, to $32.2 million, with subscriptions and other recurring revenue coming to $5.8 million, up by nearly a factor of six. Maintenance services (meaning support contracts for JDA’s various software packages) had a 36.6 percent hike in Q2, to $60.6 million, bringing overall product revenues to $90.6 million, up 37 percent. Consulting services more than doubled to $55.3 million; other revenue nearly doubled to $4.6 million.

    JDA ended the quarter with $146.2 million in cash and equivalents, and as we go to press, the company has a market capitalization of $994 million, about where it was before that Texas jury in June awarded Dillard’s department stores a huge $246 million judgment in a long-running lawsuit against i2.

    In a conference call with Wall Street analysts, Pete Hathaway, JDA’s chief financial officer, said that in the second quarter, about 43 percent of software and subscription sales came from the i2 products; i2 maintenance renewals are lagging a bit but not outside expected ranges. Hathaway said that JDA closed 54 software deals in Q2 (down quite a bit from the 68 it did a year ago, when the economic meltdown was still hot); six deals were for transactions of $1 million or more. Average selling prices have been above $600,000 for seven quarters; Q2’s $608,000 ASP dipped a bit from Q1, when it was $618,000. In general, Hathaway said JDA expected to close more large transactions as time goes on.

    Hathaway said that JDA expected to be able to chop about $20 million of costs out of the combined JDA and i2 companies, and that it removed $4 million in costs in the first quarter and another $5 million in the second quarter, a little less than halfway to the goal. JDA is ramping up its programming and services from its Hyderabad and Bangalore operations in India.

    As for that Texas verdict, Hamish Brewer, JDA’s president and chief executive officer, said that JDA was flabbergasted by the excessive nature of the damages awarded by the jury in the Dillard’s case. “We believe that the shocking verdict issued by the jurors against us was ill founded and excessive,” Brewer said on the call. Brewer said that there was a hearing on July 15 where the judge is considering arguments for both sides of the case to convert the jury’s verdict into a judgment and asking both parties to submit additional information to make their cases. “We will keep pursuing all avenues available to us to have this verdict overturned or substantially reduced to something that we believe is reasonable,” Brewer said, adding that this could take a lot of time if there has to be an appeal and that all of this will entail paying lawyers big bags of money.

    As for guidance for the rest of the year, Brewer said that the third quarter would be software than the second, followed by a stronger fourth quarter.

    RELATED STORIES

    JDA Software’s i2 Unit Smacked with $246 Million Judgment

    JDA Software Takes Another Run at i2 Technologies

    JDA Recovers Nicely in the Second Quarter

    JDA Plots Course Forward for MMS, and–Surprise–It’s Java

    JDA Previews New GUI for MMS at User Conference

    JDA Sales Hampered and Profits Slammed by Downturn in Q1

    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 Elaborates on Supply Chain Strategy, But Questions Remain

    JDA Completes Manugistics Deal, Warns of Weaker Second Quarter Results

    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 19, Number 28 -- August 9, 2010

    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

    Allocating Enough System Storage to a Subsystem iDevCloud to Provide Online Playground for IBM i Developers

    Leave a Reply Cancel reply

TFH Volume: 19 Issue: 28

This Issue Sponsored By

    Table of Contents

    • IBM Allows i and 5250 Licenses to Jump Hardware
    • Whatever Happened to Notes/Domino on the i?
    • Let’s Take a Closer Look at IBM’s Systems and Technology Biz
    • Mad Dog 21/21: Back To School
    • SAP Bows to Oracle on TomorrowNow, Argues Damages
    • IBM Buys Storwize for Data Compression Smarts
    • RPG World Turns to Chicago Training Facility
    • Addition of i2 Drives JDA Software’s Growth in Q2
    • A Magic Rebound for Software Maker?
    • IBM Cuts Deals on Selected Network Switches

    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