JDA Software Group Inc. (JDAS) reported 2010 first-quarter results after the closing bell on Tuesday. The company reported a GAAP net loss of $4.3 million, compared to a GAAP net income of $2.6 million in the year-ago quarter. However, excluding special items, pro forma earnings per share came in at 31 cents, which topped the Zacks Consensus Estimate by 8 cents. Shares of the company gained nearly 1% in early morning trade on the Nasdaq.
JDA Software is a provider of enterprise solutions designed to enable planning, optimization and execution of supply chain processes. The company offers its solutions to its worldwide customer base of more than 6,000 retailers, manufacturers, wholesaler-distributors and services industries companies.
The Scottsdale, AZ-based JDA recorded a strong 58.0% growth in revenues to $131.6 million, compared to $83.3 million in the year-ago period. Product revenue grew by 47.1% year-over-year to $85.8 million primarily driven by a 70.2% growth in software license and subscription revenues from the Americas region coupled with a 32.7% growth in maintenance revenue. Services revenue also witnessed an impressive 83.3% growth to $45.8 million mainly due to higher revenues from consulting.
JDA recorded a 58.4% year-over-year growth in gross profit to $78.9 million primarily due to solid revenues. However, the company posted an operating loss of $253,000, compared to an operating profit of $4.5 million in the year-ago period mainly due to costs related to the acquisition of i2 Technologies Inc., which was absent in the year-ago quarter, and higher restructuring charges. Dallas, TX-based i2 Technologies offers supply chain management solutions to more than 500 customers in computer and electronics; telecommunications equipment and services; semiconductor; retail; consumer electronics and other industries.
During the quarter, JDA generated $12.2 million of cash from operations and $10.9 million from issuance of common stock. The company also deployed $213.4 million towards the acquisition of i2 Technologies and ended the quarter with cash and cash equivalents, including restricted cash, of $167.5 million.
Meanwhile, the Zacks Consensus Estimate on JDA’s earnings for 2010 is currently pegged at $1.86 per share, which has remained constant over the past 2 months. For 2011, the Zacks Consensus Estimate of $2.42 per share has remained unchanged as well over the past 2 months.
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