JDA Software Group, Inc., The Supply Chain Company, has announced financial results for the first quarter ended 31 March, 2011. JDA reported record first quarter revenues of $163.6 million, a 24 percent increase from $131.6 million of revenue reported in first quarter 2010. Software licence and subscription revenues in the first quarter 2011 increased 27 percent to $36.5 million from $28.7 million in first quarter 2010.
Adjusted EBITDA increased 20 percent to $37.8 million in first quarter 2011 from $31.4 million in the first quarter of 2010. JDA also reported adjusted non-GAAP earnings per share for first quarter 2011 of $0.45, an 18 percent increase from the $0.38 per share reported in first quarter 2010. Adjusted non-GAAP earnings exclude amortisation of acquired software technology and intangibles, restructuring charges, stock-based compensation and costs related to the acquisition and transition of i2 Technologies, Inc. (i2). Adjusted non-GAAP earnings in the first quarter 2011 also exclude a $37.5 million pre-tax credit associated with the favourable settlement of the patent infringement case against Oracle Corporation, of which $35.0 million in cash was received in the first quarter. GAAP net income attributable to common shareholders for first quarter 2011 was $45.5 million or $1.07 per diluted share, compared to a loss of $4.3 million or $0.11 per share in first quarter 2010. Results for 2010 include the completion of the acquisition of i2 as of January 28, 2010.
"We opened the year with a strong performance driven by record revenues in every line of business and finished the quarter with over $260 million of cash on hand," said JDA Software President and Chief Executive Officer Hamish Brewer. "With a strong software pipeline outlook for the year we believe we are well positioned to achieve our overall goals for 2011."
Software and Subscription
Software and subscription revenue increased 27 percent to $36.5 million in the first quarter 2011 from $28.7 million in the first quarter 2010. The increase was driven by continued strength in North America and solid results from the EMEA region.. The average sales price for the trailing 12 months ended March 31, 2011 increased to $720,000 from $618,000 for the trailing 12 months ended March 31, 2010.
Maintenance and Support Services
Maintenance revenue increased 14 percent to $64.8 million in the first quarter 2011 from $57.1 million in the first quarter 2010. This increase was due to the acquisition of i2 and the strong attachment of maintenance contracts to new license deals. In addition, the year-to-date customer retention rate in the first quarter 2011 improved to 98.5 percent from 98.3 percent in 2010.
Consulting services revenue increased 36 percent to $62.4 million in the first quarter 2011 from $45.8 million in the first quarter 2010. This increase was primarily due to the acquisition of i2 and increased implementation services work associated with larger software sales. Consulting services gross margins increased to 18 percent in first quarter 2011 from 17 percent in the first quarter 2010.
Other Financial Data
Operating expenses as a percent of revenue continue to show the positive operating leverage effects of the i2 acquisition. Product development expenses as a percent of revenue improved to 12.3 percent in the first quarter 2011 compared to 13.1 percent in the first quarter 2010. Sales and marketing expenses as a percent of revenue remained constant at 16.0 percent in the first quarter 2011 compared to 16.0 percent in the first quarter 2010. General and administrative expenses as a percent of revenue increased slightly to 13.5 percent in the first quarter 2011 compared to 13.4 percent in the first quarter 2010.
Cash flow provided by operations was $58.7 million (including $35.0 million from the Oracle litigation settlement) in first quarter 2011 compared to cash flow from operations of $12.2 million in first quarter 2010.
Cash and cash equivalents, including restricted cash, increased $93 million to $260.5 million at March 31, 2011, from $167.5 million at March 31, 2010. The Company's debt position, net of cash, at March 31, 2011 was $12.3 million.
On March 18, 2011, JDA completed a $100 million Senior Secured Revolving Credit Facility providing additional liquidity to the company while taking advantage of the favorable rate environment. No amounts were drawn on the facility at March 31, 2011.
First Quarter 2011 Highlights
The following presents a high-level summary of JDA's regional software sales performance:
JDA reported $21.1 million in software license and subscription revenues in its Americas region during first quarter 2011, compared to $18.9 million in first quarter 2010. Companies signing new software licenses in first quarter 2011 include: Anna's Linens, Inc., Black Photo Corporation, Brightpoint, Inc., Chico's FAS, Inc., Coca-Cola Bottling Company Consolidated, Cooper Tire & Rubber Company, Nalco Holding Company, and Stonyfield Farm.
Software licence and subscription revenues in the Europe, Middle East and Africa (EMEA) region increased to $12.6 million in first quarter 2011, from $5.4 million in first quarter 2010. New software deals in the EMEA region include: Bon Preau SAU, Esselunga Supermercati SpA, Gloria Jeans, Soitec SA, and Gruppo Bennet.
JDA's Asia-Pacific region posted software licence and subscription revenues of $2.8 million in first quarter 2011, compared to $4.4 million in first quarter 2010. Wins in this region include: SVI Public Company Limited.