Supply chain management software vendor JDA Software Group Inc. saw its financial results fall back to earth in the recently completed third quarter, a reversal of second-quarter results that seemed to defy the recession’s effects.
For the three-month period ended Sept. 30, JDA reported a 2% decline in total revenue and a 25% drop in software license revenue. Net income fell 24%.
JDA’s third-quarter revenue of $95.9 million was down from sales of $98.4 million in the third quarter of 2008. Software license revenue totaled $17.3 million, compared with $23 million in the year-earlier period. Net income in the third quarter was $6.3 million, down from $8.2 million.
Net income in the quarter was reduced by $8.6 million, cash that the company was required to pay for redeemable preferred stock that was sold by a private equity investor in JDA, Thoma Bravo LLC. JDA CEO Hamish Brewer, in remarks to securities analysts Monday, said Thoma Bravo decided to liquidate all of its investments in JDA during the quarter and to relinquish its seat on JDA’s board of directors.