J.D. Edwards Reports Significantly Improved Profitability for the First Quarter Ended January 31, 2003.Business Editors DENVER--(BUSINESS WIRE)--Feb. 20, 2003 GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). Net Income Highest for First Quarter in Company History; Earnings Per Share Grow to $0.05 J.D. Edwards (J.D. Edwards & Company, Denver, CO, www.jdedwards.com) A developer of multinational, integrated enterprise software for distribution, finance, human resources, manufacturing and supply chain management. & Company (Nasdaq:JDEC JDEC Joint Data Exchange Center (US/Russian missile warning) JDEC Joint Document Exploitation Center (US DoD) ) today reported financial results for the first quarter ended January January: see month. 31, 2003. Profitability in the first quarter of fiscal 2003 improved significantly over the first quarter of fiscal 2002. On a GAAP basis, net income in the first quarter of fiscal 2003 was $7 million, or $0.05 per share, compared to a loss of $4 million, or a loss of $0.04 per share, in the same period last year. Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income grew to $6 million, or $0.05 per share, compared to $4 million, or $0.03 per share, in the first quarter of fiscal 2003. A reconciliation from GAAP results to pro forma results is provided as supplemental information on the attached "Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Operations." Total revenue for the first quarter of fiscal 2003 was $206 million. License fee revenue grew to $47 million, and services revenue was $159 million. "Our first-quarter results once again demonstrate that we are executing well and delivering on our commitment to improved profitability," said J.D. Edwards Chairman, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Bob Dutkowsky. "Our profitability increased significantly and exceeded expectations. In fact, our net income was the highest level for any first quarter in our company history. Our cash position continued to grow and is now at nearly $390 million. We achieved these results by continuing our focus on improving our execution across all functional areas of J.D. Edwards." Highlights Customer transactions and other recent highlights include: -- Signed new license agreements. The Company signed agreements for its collaborative solutions with customers including Ralcorp Holdings, Inc., Express Services, Inc., Liberty Property Limited Partnership, Dorel Juvenile Group, Inc., Giant Cement Holdings, Inc., Inland Paperboard and Packaging, Inc., Wm. Bolthouse Farms, Inc. and Pharmavite LLC in the United States; J.S. Redpath Limited in Canada; Moto Honda da Amazonia Ltda in Latin America; Electrolux AB, Vivendi Universal S.A., Sobel NV, and Calor Gas Ltd, in Europe; Australian Postal Corporation and Stockland Corporation Limited in Australia/New Zealand; and KYE Systems Corp. in Asia Pacific. -- Released J.D. Edwards CRM 2.0. J.D. Edwards released its latest version of its Customer Relationship Management solution, J.D. Edwards CRM 2.0. With over 175 new enhancements, J.D. Edwards CRM 2.0 is integrated with the company's Supply Chain Management and Enterprise Resource Planning applications. Major enhancements in CRM 2.0 include integration to the Company's Demand Consensus supply chain application, mobile sales functionality and a comprehensive service management solution. -- Delivered new supply chain management functionality. J.D. Edwards added new Supply Chain Event Management capabilities for its Production and Distribution Planning solution, enabling companies to detect and resolve operational issues in real time. The new capabilities include multi-dimensional communication between suppliers, customers and trade partners, and instantaneous response tools that allow managers to modify production and distribution plans as necessary to accommodate changing business conditions. -- Announced J.D. Edwards five single server solution bundles for IBM's new eServer iSeries models. J.D. Edwards is offering three new software and services solution bundles that will enable businesses to install J.D. Edwards five collaborative enterprise software up to 50 percent faster on IBM eServer iSeries models. The single server bundles for manufacturing, distribution and financials include pre-configured technical setup, collaborative computing on a single server environment, and tailored consulting and education services for rapid time to value. Conference Call J.D. Edwards will hold a conference call to review the first-quarter 2003 results at 5:00 p.m. Eastern Time today. A webcast of the conference call will be available to all interested parties on the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " section of the J.D. Edwards web site at www.jdedwards.com. About J.D. Edwards J.D. Edwards makes customers stronger, enabling them to solve their most important business challenges. The company offers collaborative col·lab·o·rate intr.v. col·lab·o·rat·ed, col·lab·o·rat·ing, col·lab·o·rates 1. To work together, especially in a joint intellectual effort. 2. enterprise software as well as consulting, education and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . J.D. Edwards' offerings are differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: by a deeply ingrained in·grained adj. 1. Firmly established; deep-seated: ingrained prejudice; the ingrained habits of a lifetime. 2. attitude of listening to customers, innovating on their behalf, and delivering solutions as part of a results-oriented relationship. Founded in 1977 and headquartered in Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. , J.D. Edwards focuses on long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. business partnerships and helping its 6,600 customers in more than 110 countries collaborate electronically to manage their business processes, supply chains, enterprise assets and supplier and customer relationships. For more information: www.jdedwards.com or 800/727-5333. J.D. Edwards is a registered trademark of J.D. Edwards & Company. The names of all other products and services of J.D. Edwards used herein are trademarks or registered trademarks of J.D. Edwards World Source Company. All other product names used herein are trademarks or registered trademarks of their respective owners. The historical results stated above are not necessarily indicative indicative: see mood. of the results of any future period. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Portions of this press release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc J.D. Edwards' future prospects contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " which are subject to certain risks and uncertainties that could cause actual results to differ materially. These statements reflect J.D. Edwards' current beliefs and are based on information currently available to J.D. Edwards. Among other risks that may affect the Company's business, risks include the potential for a downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in general economic and market conditions, the impact on general business conditions as a result of a potential war, substantial fluctuations in our future license fee revenue and results of operations from period to period as uncertain economic conditions affect the timing of customer orders and amount of capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , sales forecasts Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. may not consistently correlate to revenue in a particular quarter, future services revenue is dependent on our license contract activity and the Company's ability to attract and retain key direct revenue-generating employees, the Company's stock price is volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. and there is a risk of securities litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , and other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission. For a more detailed discussion of information regarding these and other risks that affect the company's operating results, please refer to J.D. Edwards & Company's most recent Annual Reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , the most recent 10-Q, and future quarterly and annual reports. Copies of these documents can be obtained on the J.D. Edwards Investor Relations web site at http://www.jdedwards.com/company/investor.asp or by contacting the Investor Relations Department at 877/533-5332 (877/JDE-JDEC). The Company undertakes no obligation to update the information contained in this release, including any forward-looking statements, or to update any information on its web site. J.D. Edwards & Company Consolidated Statements of Operations (in Thousands, Except Per Share Amounts)
Three Months Ended
January 31,
------------------
2002 2003
---- ----
(unaudited)
Revenue:
License fees $43,940 $46,842
Services 160,728 159,088
------- -------
Total revenue 204,668 205,930
Costs and expenses:
Cost of license fees 5,283 8,826
Cost of services 78,519 77,736
Sales and marketing 63,735 58,661
General and administrative 22,380 21,655
Research and development 29,131 30,826
------- -------
Subtotal 199,048 197,704
Operating income before certain
charges 5,620 8,226
Amortization and write-offs of
acquired software, other acquired
intangibles, and acquisition related
deferred stock compensation
6,328 2,194
Acquired in-process research and
development 4,600 --
Restructuring and other related charges (30) --
------- -------
Operating income (loss) (5,278) 6,032
Other income (expense):
Interest and dividend income 1,424 1,846
Interest expense, foreign currency
gains (losses) and other, net (954) (318)
------- -------
Income (loss) before income taxes (4,808) 7,560
Provision for (benefit from)
income taxes (675) 1,058
------- -------
Net income (loss) $(4,133) $6,502
======= =======
Net income (loss) per common share (1):
Basic $(0.04) $0.05
======= =======
Diluted $(0.04) $0.05
======= =======
Weighted-average shares outstanding:
Basic 116,500 119,523
Diluted 116,500 122,333
Supplemental information: Reconciliation
of net income (loss) to pro forma net
income:
Net income (loss) $(4,133) $6,502
Adjustments to net income (loss):
Amortization and write-offs of
acquired software, other acquired
intangibles, and acquisition related
deferred stock compensation 6,328 2,194
Write-off of acquired in-process
research and development 4,600 --
Restructuring and other related
charges (30) --
Income tax effect (2) (3,111) (2,844)
------- -------
Pro forma net income $3,654 $5,852
======= =======
Pro forma net income per common share:
Basic $0.03 $0.05
======= =======
Diluted $0.03 $0.05
======= =======
Shares used in computing pro forma
per share amounts:
Basic 116,500 119,523
Diluted 120,195 122,333
(1) For periods in which the Company reports a net loss, common stock equivalents such as stock options are not included in the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share. The effect of including common stock equivalents would be to decrease the reported losses per share, which is not appropriate under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . (2) An assumed tax rate of 40% is used to calculate the pro forma income tax effect. J.D. EDWARDS & COMPANY CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (in thousands, except share and per share amounts)
October 31, January 31,
2002 2003
----------- -----------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $302,830 $344,327
Short-term investments 301 405
Accounts receivable, net of allowance
for doubtful accounts of $12,300
at October 31, 2002 and January 31, 2003 193,202 211,214
Other current assets 38,344 28,246
------- -------
Total current assets 534,677 584,192
Long-term marketable securities and
other investments 17,203 8,661
Restricted cash, cash equivalents, and
investments 35,995 35,995
Property and equipment, net 69,728 71,590
Software costs, net 77,275 75,005
Goodwill, net 67,292 68,547
Intangible and other assets, net 7,483 6,578
------- -------
$809,653 $850,568
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $35,032 $30,883
Unearned revenue and customer deposits 181,728 234,619
Accrued liabilities 138,737 112,812
------- -------
Total current liabilities 355,497 378,314
Unearned revenue, net of current portion,
and other 12,271 15,349
------- -------
Total liabilities 367,768 393,663
Stockholders' equity:
Preferred stock, no series, $.001 par value;
4,700,000 shares authorized; none
outstanding -- --
Preferred stock, series A participating,
$.001 par value; 300,000 shares authorized;
none outstanding -- --
Common stock, $.001 par value; 300,000,000
shares authorized; 121,294,328 shares
issued as of October 31, 2002 and
January 31, 2003 and 119,281,613
shares and 119,976,360 shares outstanding
as of October 31, 2002 and January 31, 2003,
respectively 121 121
Additional paid-in capital 493,779 491,027
Treasury stock, at cost; 2,012,715 and
1,317,968 shares as of October 31, 2002 and
January 31, 2003, respectively (24,262) (15,887)
Deferred compensation (1,421) (1,062)
Accumulated deficit (10,882) (4,380)
Accumulated other comprehensive income
(loss): unrealized gains (losses) on
equity securities and foreign currency
translation adjustments, net (15,450) (12,914)
------- -------
Total stockholders' equity 441,885 456,905
------- -------
$809,653 $850,568
======= =======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion