JDA Software to Beat Q1 Expectations
By Cindy Christ
Shares in JDA Software Group (JDAS) forged higher Friday after
the company said it expects first-quarter earnings to exceed
Wall Street projections due to better-than-expected software
license revenue.
Analysts estimate first quarter per-share earnings of 3 cents
for JDA, according to First Call/Thomson Financial.
Based on preliminary figures, JDA said it expects software
license revenue to total about $15 million, or essentially
double the license revenues posted a year ago.
The company didn't provide a preliminary earnings per share
outlook.
"With Y2K behind us, and as a result of the development
initiatives that we undertook over the past year, we've had
exceptionally strong acceptance of our product offerings,"
said JDA Software CEO Jim Armstrong in a statement.
"Our product strategy features new and complimentary offerings
including business-to-consumer and business-to-business
applications that exploit the power of the Internet," he
added.
JDA Software is set to report financial results after the
close on April 20 and will host a conference call at 4:45 p.m.
Eastern Standard Time.
Investors can listen to the conference by calling 800/230-1092
(United States) or 612/332-0718 (International) and asking the
operator for the "JDA First Quarter Earnings Release."
Scottsdale, Ariz.-based JDA provides enterprise software
products and software licensing, consulting and maintenance
services for retail businesses.
For fiscal year 1999, JDA revenues rose 3 percent to $142.7
million. Net income totaled $337 thousand versus a loss of
$2.5 million in 1998.
JDA's customer list includes 740 retailers and 40 consumer
goods manufacturers worldwide, including Wal-Mart Stores
(WMT), Best Buy (BBY), Bombay Co. (BBA) and Petco Animal
Supplies (PETC).
Analysts polled by Zacks Investment Research estimate JDA
Software's earnings will grow 25 percent annually over the
next five years.
At the close, JDAS was up $2.81, or 19.2 percent, at $17.43.
6.4 percent by midday.
