J.D. Edwards Projects Optimism Despite Revenue Dip

J.D. Edwards

"Our core market is still depressed," said CEO Bob Dutkowsky. Yet in a call with analysts and media this afternoon to discuss the financial results, the new CEO--named to the post last month--tried to project a sense of optimism about enhancements to the company's ERP and supply chain management software aimed at keeping competitors Oracle, PeopleSoft and SAP at bay.

"We plan to deliver more new application functionality in the next two years than in any similar period in our company's history," he said. "We need to tighten our focus and improve on our execution."

For the first quarter, J.D. Edwards, based here, reported sales of $200.6 million, as opposed to $217.7 million in revenue in the corresponding quarter last year.

Services revenue rose to $156.6 million, up from $135 million in the first quarter of 2001. License fees accounted for $43.9 million of the quarterly revenue, compared with $82.7 million in the year-ago quarter.

Pro forma net income was $3.7 million, or 3 cents per diluted share. In the break-even first quarter of 2001, J.D. Edwards reported earnings of $191,000.

Including charges related to the company's restructuring in the quarter and its acquisition of CRM vendor Youcentric, actual loss was $4.1 million, or 4 cents per share. First Call/Thomson Financial had projected a loss of 1 cent per share.

J.D. Edwards took a one-time charge of $4.6 million for in-process research and development acquired as part of the Youcentric buy.

J.D. Edwards, which signed about 100 new customers this quarter, closed Thursday at $15.04.