JDA Software has ended the 2011 fiscal year with numbers mostly in line with its original guidance for full-year 2011, which is good news as software sales declined and as the firm wrapped up legal disputes with Oracle over patent infringements.
JDA has not yet finalized its financial results for the fourth quarter but was prompted to put out preliminary financial data because of the drop in its software license sales. Overall, its unaudited revenue for the fourth quarter is roughly $173 million, which would be a 3 percent increase from the $168.8 million it reported in the fourth quarter of 2010. JDA estimates its revenue for the year ending in December to be $670 million, which would represent a 9 percent increase.
JDA will formally release its fourth quarter results on Jan. 31 with an investor call and Webcast, a copy of which will be posted to its Website.
In the preliminary announcement, the company said it expects:
- Adjusted EBITDA to be slightly above the midpoint of the company’s guidance range.
- Adjusted earnings per share to be toward the high end of its guidance range.
- Free cash flow, excluding litigation settlements, to be at or above the top end of its guidance range.
For the fourth quarter of 2011, JDA said its total software and subscription revenue is expected to be $37 million, a 12 percent decrease from the $42 million it reported in the fourth quarter of 2010.
Software and subscriptions in the Americas region is expected to decline to $21 million from $31 million, but JDA said this will be partially offset by the Europe, Middle East and Africa (EMEA) regional business that saw sales grow about 50 percent from $7.9 million to $12 million. Related revenue in the Asia-Pacific region is expected to increase at least 10 percent, climbing above $3.3 million.
For the fourth quarter, JDA closed only eight deals in excess of $1 million, down from 10 such deals in the fourth quarter of 2010.
Overall, unaudited yearly numbers show an 8 percent increase in software and subscription revenue from $130.7 million to $141 million, but this is below its revenue guidance range of $145 million to $160 million.
For its maintenance revenue, JDA is projecting a 4 percent quarterly increase to $67 million and attributes this to a retention rate of roughly 95 percent. For the year, JDA expects to see an 8 percent increase to $266 million.
For its consulting services, JDA said it will see a 9 percent quarterly gain to $68 million and also a 9 percent yearly gain to $262 million.
“We believed it was prudent to report to our shareholders the unanticipated shortfall we experienced in fourth quarter software license sales in North America, even as all other regions and all other revenue streams in North America were healthy and consistent with our expectations," said JDA President and Chief Executive Officer Hamish Brewer, in a statement. "We intend to use the first quarter to better understand our North American software customers’ spending plans for 2012, and will factor our conclusions into our longer-term outlook.” — Geoff Whiting