Monday, supply chain solutions provider JDA Software Group, Inc. (JDAS), reported a swing to profit in the fourth quarter from a loss last year, primarily on the absence of a pre-tax charge that the company incurred in 2008 related to an abandoned acquisition. Revenues for the quarter were higher, with operating expenses significantly lower when compared with a year-ago.
On a GAAP basis, JDA's net income for the quarter was $8.49 million or $0.24 per share, compared to a loss of $13.54 million or $0.44 per share in the similar quarter a year-ago. Net loss for the quarter included a pre-tax charge of $29.7 million related to an abandoned acquisition.
Adjusted net income for the quarter declined to $15.02 million from $15.12 million in the year-ago quarter. Adjusted earnings per share was $0.43, flat with a year ago.
On average, 4 analysts polled by Thomson Reuters expected the company to earn $0.47 per share for the quarter. Analysts' estimates typically exclude special items.
According to the Scottsdale, Arizona-based company, total revenues for the quarter increased to $107.1 million from $106.2 million in the fourth quarter a year-ago. Four Wall Street analysts estimated revenue of $103.43 million for the quarter.
Product revenues, which include software licenses and maintenance services, declined to $75.58 million from $78.30 million a year-ago, while service revenues which include consulting services and reimbursed expenses increased to $31.53 million from $27.90 million in the prior year period.
Geographic area-wise, JDA closed $19.1 million in software deals in its Americas region. The company's software sales in Europe, Middle East and Africa region were $6.4 million and sales in the Asia Pacific region posted software sales of $3.1 million for the quarter.
The company's total cost of revenues including the cost of product revenues and the cost of service revenues increased to $38.97 million from $37.69 million in the comparable period a year-ago.
Total operating expenses including expenses towards product development, sales and marketing expenses, general and administrative expenses, amortization of intangibles, restructuring charges and acquisition-related costs, as well as the costs of abandoned acquisition declined significantly to $56.62 million from $80.52 million in the fourth quarter a year-ago.
Cash and cash equivalents were $76.0 million at December 31, 2009, after transferring $17.1 million to restricted cash in connection with the pending acquisition of i2, compared to $32.7 million at December 31, 2008.
The company said that during the quarter it issued $275 million of 5-year 8% senior notes. The net proceeds were placed in escrow and will be used to fund a portion of the cash merger consideration of the pending acquisition of i2.
Oracle Corp. reported a 12% increase in its second quarter profit on December 17 due to higher revenue and improved margins.
Year-to-date, the net income increased to $17.74 million or $0.50 per share from $3.12 million or $0.09 per share in the prior year period. Adjusted net income for the fiscal year increased to $54.98 million or $1.56 per share from $51.83 or $1.47 per share a year-ago. Year-to-date total revenues declined to $385.80 million from $390.33 million in the prior year period.
The Street estimated earnings of $1.60 per share on a revenue of $382.11 million for the entire fiscal year.
JDAS closed Monday's trade at $25.88, down $0.47 or 1.78%, on a volume of 723 thousand shares on the Nasdaq. In after hours, the stock traded up $0.11 or 1.43%.
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