Supply chain management software provider JDA Software Group yesterday reported record revenue in its fourth quarter, ended Dec. 31, 2007, with nearly half of total revenue realized from the company's 2006 acquisition of supply chain software provider Manugistics.
Manugistics contributed $43.4 million to JDA's total revenue of $98.5 million in the quarter, which was an 11% year-over-year improvement compared with $88.6 million in the like period in 2006. Software revenue jumped 27% to $22.4 million in the quarter — including $6.4 million from Manugistics — compared with $17.7 million in the year-earlier period.
"Software sales is the leading indicator for JDA's business, and as such we feel very good about our prospects going forward into 2008," said JDA CEO Hamish Brewer, on a conference call with financial analysts yesterday. Attributing much of the company's achievement in 2007 to the impact of the successful Manugistics acquisition, Brewer said, "I believe that we have executed the integration of this struggling but potentially great company about as well as I could have hoped."
Revenue from maintenance and services also rose in the quarter, with maintenance contributing $47 million, compared with $43 million in the like period of 2006. Services revenue, including consulting, was $29 million, up from $27.9 million in the year-earlier period.
JDA also swung to a profit. GAAP net income was $8 million in the quarter, translating to $0.22 per share, compared with a loss of $1.9 million, or $0.06 per share, in the fourth quarter of 2006. Adjusted EBITDA was $22.9 million, up from $15.8 million in the year-earlier period.
In regional results mirroring those of many enterprise software providers, software license sales in the period were up in each of JDA's three geographic regions, fueled by a total of 72 new license contracts, including five deals exceeding $1 million, the company said. Asia Pacific, the company's fastest-growing region, saw a 216% jump in software sales, to $2.9 million, compared with $926,000 a year earlier. In the Europe, Middle East, and Africa (EMEA) region, revenue from software sales rose 30% to $7.5 million, up from $5.7 in the fourth quarter of 2006. In the Americas, quarterly software revenue was $12 million, up from $11.1 million in the like period of 2006.
For the full year, JDA's total revenue increased 35% to $373.6 million from $277.5 million. Software revenue jumped 50% to $73.6 million, from $49 million in 2006. Maintenance and services revenues, meanwhile, were up 38% and 23% to $178.2 million and $121.8 million, respectively.
GAAP net income for the full year reached $26.5 million, or $0.76 per share, compared with a loss of $11.3 million, or $0.39 per share, in 2006.
JDA paid $2 million toward its debt in the quarter, ending the year with $95.3 million in cash and a debt balance of $99.6 million as of Dec. 31. The company had $53.6 million in cash and $141.1 million in debt at the end of 2006.
In 2008, the company expects software revenue to total $75 million to $85 million for the year, which would be an improvement of 2% to 15% on 2007's $73.6 million. Officials predicted that full-year revenue would reach $382 million to $395 million, which would represent a gain of 2% to 6%. The company did not provide quarterly guidance for 2008.
Buoyed by the success of the Manugistics deal, Brewer also noted on the conference call that JDA is "actively looking" for additional strategic acquisition targets.