May 29, 2003 (02:05 PM EDT)
J.D. Edwards Tips Over For A Loss
Read the Original Article at InformationWeek
Citing a weak economy and a chaotic geopolitical environment, J.D. Edwards & Co. reported disappointing second-quarter results. The fourth-ranked enterprise resource planning vendor reported a loss of $393,000, or 0 cents per share, on revenue of $203.5 million, compared with a profit of $3.5 million, or 3 cents per share, on revenue of $223.6 million a year ago.
The loss includes one-time fees for amortization of acquisitions and restructuring and other charges.
After slow growth in 2001 and early 2002, J.D. Edwards had actually turned itself around in the last nine months. In fact, during the first quarter of this year, ended Jan. 31, the company reported $6.5 million in net income and said it was the most profitable first quarter in its 25 years. A year earlier, the company had lost $4.1 million.
In statement released today, the company said customers are licensing and implementing smaller "increments" of software. J.D. Edwards' services business performed better during the second quarter than licensing. Services revenue was $159.9 million, compared with $43.6 million in license fees. A year ago, services revenue was $169.5 million and license fees were $54.1 million.