JDA Software Reports Record Results in 2007 with 35% Annual Revenue Growth
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Record Revenue, Strong Software Sales in Q4 2007 Help JDA End Year with Annual Revenue of $374 Million and Annual GAAP Earnings Increase of $27 Million
Scottsdale, Ariz. - January 28, 2008 - JDA® Software Group, Inc. (NASDAQ: JDAS) today announced financial results for the fourth quarter and full year ended December 31, 2007. JDA reported record total revenues of $98.5 million and software revenue of $22.4 million for fourth quarter 2007, compared to total revenues of $88.6 million and software revenue of $17.7 million in fourth quarter 2006. The Manugistics acquisition, which closed on July 5, 2006, represented $43.4 million of total revenues during fourth quarter 2007 and included $6.4 million of software revenue.
JDA reported adjusted non-GAAP earnings for fourth quarter 2007 of $0.35 per share, which excluded amortization of acquired software technology and intangibles, restructuring charges and adjustments to acquisition-related reserves and stock-based compensation, as compared to adjusted non-GAAP earnings per share of $0.20 for fourth quarter 2006, which excluded amortization of acquired software technology and intangibles, restructuring charges and adjustments to acquisition-related reserves, stock-based compensation, adjustments to increase the carrying value of Series B Preferred Stock to its redemption value, one-time charges related to the discontinuance and replacement of the Portfolio Replenishment Optimization (PRO) software application and impairment charges. The Company reported GAAP net income for fourth quarter 2007 of $8.0 million or $0.22 per share, as compared to a GAAP net loss of ($0.06) per share in fourth quarter 2006. JDA reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $22.9 million for fourth quarter 2007, compared to $15.8 million for fourth quarter 2006.
"Our strong performance in fourth quarter 2007 provided the perfect finish to a record year for JDA. In fact, we saw double-digit revenue growth in FY2007, representing a nearly $100 million increase over 2006, along with a $27 million increase in GAAP earnings," said JDA CEO Hamish Brewer. "Software sales grew 50% in 2007 over 2006, and in the fourth quarter all three regions delivered both year-over-year and quarter-over-quarter sales growth; business is humming at JDA."
"Market demand for our comprehensive product line continues to intensify among existing and new customers across every industry. We just returned from the year's largest retail trade show, the National Retail Federation's Big Show, and have tallied a record number of leads to add to our already promising pipeline. We are excited to leverage our success and market momentum into 2008," added Brewer.
Hamish Brewer and Kristen L. Magnuson, JDA's Executive Vice President and CFO, will provide guidance for 2008 during JDA's scheduled conference call.
Fourth Quarter 2007 Highlights
Software License Sales Increase in Every Region: Signing 72 new software license contracts, including five deals that exceeded $1.0 million, JDA achieved its second best quarter for software license revenue in the Company's history. JDA's worldwide software sales increased by 27% in fourth quarter 2007 compared to fourth quarter 2006, and by 45% compared to third quarter 2007.
o In the Americas, JDA closed $12.0 million in software sales in fourth quarter 2007, compared to $11.1 million closed in fourth quarter 2006. The regional results include software transactions with Americas customers including the following in the U.S.: Cabela's, Inc., Elemica, Inc., Modell's Sporting Goods, Nash Finch Company and Next Day Gourmet, Inc.; in Latin America: Almacenes Exito, S.A. and Por Distincion S.A. de C.V.; and in Canada: Federated Cooperatives.
o JDA's EMEA region increased software sales by 30% to $7.5 million in fourth quarter 2007, compared to $5.7 million in fourth quarter 2006. New customers based in EMEA include Dahl International AB, Engrotus D.O.O., Intersport Sverige AB, Kellogg Marketing & Sales Company Ltd., Musgrave Group, PLC, National Express East Coast, Thales Information Systems Limited and Unicoop Firenze S.C.R.L. The EMEA team also hosted a highly successful annual customer event, JDA Connect, during the quarter that attracted approximately 200 participants.
o JDA's Asia Pacific region increased software sales by 216% to $2.9 million in fourth quarter 2007, compared to $926,000 in fourth quarter 2006. Significant wins in this region include AEON Group and Paccar Australia, Pty. Ltd.
o JDA ended fourth quarter 2007 with $95.3 million in cash after paying off an additional $2.0 million of debt, leaving a debt balance of $99.6 million at December 31, 2007. This compares to $53.6 million in cash and $141.1 million in debt at December 31, 2006. DSOs were 68 days at the end of fourth quarter compared to 68 days at the end of third quarter 2007 and 81 days at the end of fourth quarter 2006. Cash flow from operations was $16.0 million in fourth quarter 2007 compared to $3.0 million in fourth quarter 2006.
Twelve Month Results for 2007
For the twelve months ended December 31, 2007, total revenue increased 35% to $373.6 million compared to $277.5 million for 2006. JDA increased software revenue in 2007 by 50% over prior year to $73.6 million. The Company generated 28% organic growth in software license sales in 2007, including 30% from JDA core products and 18% from the acquired Manugistics products. Maintenance and service revenues increased 38% and 23% to $178.2 million and $121.8 million, respectively, in 2007 compared to 2006.
JDA reported adjusted non-GAAP earnings for the 12 months ended December 31, 2007 of $1.33 per share, which excluded amortization of acquired software technology and intangibles, restructuring charges and adjustments to acquisition-related reserves, stock-based compensation and a gain on the sale of an office facility, as compared to adjusted non-GAAP earnings per share of $0.58 for the 12 months ended December 31 2006, which excluded amortization of acquired software technology and intangibles, restructuring charges and adjustments to acquisition-related reserves, stock-based compensation, adjustments to increase the carrying value of Series B Preferred Stock to its redemption value, one-time charges related to the discontinuance and replacement of the Portfolio Replenishment Optimization (PRO) software application and impairment charges.
JDA reported GAAP net income for the twelve months ended December 31, 2007 of $26.5 million or $0.76 per share, as compared to a GAAP net loss applicable to common shareholders of $(0.39) per share in the 12 months ended December 31, 2006. JDA reported adjusted EBITDA of $88.7 million for 12 months ended December 31, 2007, compared to $40.6 million for the 12 months ended December 31, 2006. Cash flow from operations increased 418% to $79.7 million in 2007 compared to $15.4 million in 2006.
About JDA Software Group, Inc.
JDA® Software Group, Inc. (NASDAQ: JDAS) is focused on helping companies realize real supply chain and revenue management results - fast. JDA Software delivers integrated merchandising as well as supply chain and revenue management planning, execution and optimization solutions for the consumer-driven supply chain and services industries. Through its industry leading solutions, leading manufacturers, distributors, retailers and services companies around the world are growing their businesses with greater predictability and more profitably. For more information on JDA Software, visit www.jda.com or contact us at info@jda.com or call +1.800.479.7382.
Jenni Ottum
Public Relations Specialist
JDA Software Group, Inc.
480.308.3438
Jenni.Ottum@jda.com
