Things are busy at JDA Software Group Inc, as the Phoenix, Arizona-based provider of retail sales software and services has pre-announced another poor quarter, restated revenues and lost its chief executive officer. The company said that preliminary financial results for the fourth quarter show revenues up 10% in the range of $33m to $34m, but license revenues will be about $7.5m, down from $14.6m in the year-ago quarter, with earnings per share ranging from a loss of $0.08 to a loss of $0.11. JDA says it is still in the process of evaluating the reasons for a shortfall in software license revenue relative to the company’s operating plan, which it saw across all geographies. In the recent past, the company had experienced a slowdown in international sales, but that lag has now affected its North American market as well. For the year ended December 31, revenues show a 52% increase to approximately $139m, but software licenses were worth only $44m. The company also announced that it has restated results for its second and third quarters as a result new guidance from the Securities and Exchange Commission regarding in-process research and development write-offs. The restatement stems from the acquisition of the Arthur Retail business unit in June, which was accounted for as a purchase with a second-quarter charge of $40m. JDA has since been advised by its accountants that it would be required to reconsider its valuation of the Arthur business, applying the new SEC-approved methodology, in order to perform the company’s year-end audit. As a result, the amount of the in-process research and development charge related to the acquisition of Arthur will be reduced to $17m, the amount of goodwill recorded will be increased by $23m and second-quarter earnings will be increased from a loss of $19.3m to a loss of $5.6m. Third-quarter earnings, meanwhile, will be reduced by $575,000 due to increased goodwill amortization to $3.5m, or $0.15 per share. Amid the financial unrest, JDA said that Brent Lippman has resigned his positions as CEO and director of the company, effective immediately. James D. Armstrong and Frederick M. Pakis, co-founders and co-chairmen of the board, will both return to the company on a full-time basis and serve as co-CEOs. The company would not elaborate on Lippman’s departure. Separately, and nearly lost in the throng, JDA and Baan Co have agreed not to form a planned joint venture for developing the Baan/JDA Retail business. Instead the two are in the process of establishing an alternative marketing arrangement to sell and support their combined offerings to vertically integrated retailers. The new arrangement is expected to improve the marketing position of the combined product suite. JDA plans to announce its final results for the quarter and year on January 28.
