The financial performance of supply chain software vendors JDA Software Group Inc. and Manhattan Associates Inc. headed in dramatically divergent directions in the second quarter, with JDA reporting surprisingly upbeat results, while Manhattan Associates stumbled badly.
Both companies reported that maintenance revenue continued to come under pressure for the three-month period ended June 30. But while Manhattan Associates said customers — particularly those considering larger software purchases — remained reluctant to sign deals, JDA officials said market volatility declined significantly in the second quarter, leading to more large deals and an 8% rise in revenue. Manhattan Associates, which saw revenue decline by more than 35%, said it landed no million-dollar-plus deals in the first half of 2009. JDA, on the other hand, said it signed five such deals in the quarter.
“It appears as though the volatility of the first quarter has dramatically diminished,” said JDA CEO Hamish Brewer, in remarks to financial analysts.
“It was difficult to get ink on contracts for larger deals,” said Manhattan Associates CEO Pete Sinisgalli on a conference call to discuss his company’s results. “Companies continue to be reluctant to make capital commitments in this environment.”