JDA Reports 77% Increase in Third Quarter Software Licenses

GAAP EPS of $0.11, Non-GAAP EPS of $0.14

Scottsdale, (PresseBox) - JDA® Software Group, Inc. (Nasdaq: JDAS) today announced financial results for the third quarter and nine months ended September 30, 2003. JDA reported $58 million in total revenues for third quarter 2003, representing a 17% increase over the prior year’s quarter. Product revenues for third quarter 2003 were $37.8 million, including software licenses of $19.1 million and maintenance revenues of $18.6 million, increases of 77% and 25% respectively over third quarter 2002.
JDA reported a 345% increase in GAAP net income of $3.4 million, or $0.11 per share in third quarter 2003 compared with GAAP net income of $758,000, or $0.03 per share in third quarter 2002.
“This quarter was characterized by a number of significant competitive wins,” commented CEO Hamish Brewer. “In particular, our Americas region achieved a year over year increase of 104% as we closed four substantial deals in the U.S. Our competitive strength in the market is attributable to both our solution strength and our on-going market leadership delivering solutions.”
“We remain cautiously optimistic with a strong pipeline and we anticipate growth in license and maintenance revenues as we look forward. Consulting revenues and profits continue to be impacted by the reduction in large projects as optimization and analytic solutions continue to dominate our results. We have started to execute plans to address this issue, however, we do not expect any improvement until the first quarter of 2004.”

Third Quarter 2003 Highlights
· Increased Demand for Strategic Merchandising, Optimization and Analytics: JDA’s Arthur and E3 brands benefited from significant revenue increases in third quarter 2003 over the prior year. This is the most active segment of the market and our solutions are competing very effectively. Although sales of Portfolio Merchandising software also showed a steep incline, JDA believes that demand for large host systems will remain erratic in this economic environment.

· Major Tier One Successes: JDA won two major competitive selections at tier one retailers in the U.S., one of which wishes to remain confidential, the other was the Kroger Company, which with total revenues of $53 billion, selected an integrated merchandising, planning and replenishment solution to support the general merchandise and apparel division of its Fred Meyer chain. These competitive wins further reinforce JDA’s growing reputation as a company that can actually deliver results with these demanding customers.

· First signs of Improvement for Merchandising Systems: Although JDA does not expect to return to historic levels of sales in this product area any time soon, JDA signed five new merchandising system deals resulting in real growth for the past 12 months over the previous 12 months.

· Java-based Store Systems Business Underway: JDA signed Family Christian Stores this quarter as its early adopter of Portfolio POS™, JDA’s new Java-based store system. The specialty retailer is a current JDA client that will migrate its 325 plus stores from an older version of JDA’s in-store system. With the success of this implementation, JDA will capitalize on the emerging Java opportunities in the store systems market, widely cited as a top priority for CIO’s in 2004.

· Continuing to Raise the Bar: JDA invested $16.1 million to enhance and expand JDA Portfolio with its ongoing .Net development and to acquire Engage, Inc. to build upon its Portfolio Revenue Management suite.

JDA ended the quarter with $115 million in cash and marketable securities compared to $114.3 million at the end of last quarter and $101.9 million at December 31, 2002. Total deferred revenues increased to $28.4 million from $27.3 million last quarter. Net DSOs for third quarter 2003 were 62 days compared to 56 days last quarter, and 95 days in third quarter 2002. JDA had $1.8 million positive cash flow from operations during the third quarter compared to $12.9 million in the second quarter. The difference results from a $6.7 million increase in receivables in Q3’03 compared to a $4.5 million decrease in Q2’03, and a $4.1 million reduction in our deferred tax liability primarily as a result of our amendment to our 2002 tax return to partially capitalize R&D.

NINE MONTH RESULTS FOR 2003
For the nine months ended September 30, 2003, total revenues were $152.2 million as compared to $166.1 million recorded in the nine-month period of 2002. While product revenues increased by five percent to $94.7 million from the $90.5 million reported in the same period last year, service revenues decreased 24% to $57.5 million. This decrease is due to a shift from JDA products that have higher implementation requirements and longer payback periods to JDA’s Strategic Merchandise Management products, which offer quicker implementations and ROI. Non-GAAP earnings per share decreased to $0.20 from $0.44 last year. GAAP earnings per share decreased to $0.08 from $0.27 last year due to the decline in revenues.


CONFERENCE CALL INFORMATION
JDA will hold a conference call to discuss third quarter results on October 20, 2003 at 4:45 pm (Eastern time). To participate in the call, dial 1.800.921.9431 (United States) or 1.973.935.8505 (International) and ask the operator for the “JDA Software Group, Inc. Third Quarter 2003 Earnings.” A replay of the conference call will begin Monday, October 20, 2003 at 9:00 pm (Eastern) and will end on Monday, November 2, 2003 at 12:00 am (Eastern). You can hear the replay by dialing 1.877.519.4471 (United States) or 1.973.341.3080 (International) using access 4180045.
To participate in a Web cast of the call visit the following web page at the time of the conference call: .

ABOUT JDA SOFTWARE
With nearly 4,600 retail, manufacturing and wholesale clients in 60 countries, JDA Software Group, Inc. (Nasdaq:JDAS) is a global leader in delivering integrated software and professional services for the retail demand chain. By capitalizing on its market position and financial strength, JDA commits significant resources to advancing JDA Portfolio, its suite of merchandising, POS, analytic and collaborative solutions that improve revenues, efficiency and customer focus. Founded in 1985, JDA is headquartered in Scottsdale, Arizona and employs more than 1,300 associates operating from 33 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more details, visit www.jda.com , call 1-800-479-RETAIL (7382) or email info@jda.com.

This press release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation: (i) our anticipation of continued growth in license and maintenance revenues in the future; (ii) our expectation that consulting revenues and profits will begin improving in the first quarter of 2004; (iii) the possibility that we may be seeing the first signs of improvement in the demand for merchandising systems; and (iv) our expectation that we will successfully implement Portfolio POS at our first site for this product, Family Christian Stores. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (a) we may not be able to predict and achieve continued growth in product revenues in future quarters, particularly given the uncertainty of future economic conditions; (b) we may experience difficulty managing fluctuations in the demand for our services and therefore may be unable to improve services revenue and profits; (c) our forecast that we may experience improved demand for merchandising systems may not be accurate, particularly since our current cautious optimism is only based upon one quarter’s data point; (d) we may experience difficulty successfully implementing for the first time the initial version of a large complex system such as Portfolio POS; and (e) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. As a result of these and other risks, actual results may differ materially from those predicted. We undertake no obligation to update information in this release.

"JDA” and “JDA Portfolio” are trademarks or registered trademarks of JDA Software Group. Any trade, product or service name referenced in this document using the name "JDA" is a trademark and/or property of JDA Software Group. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders’.

JDA Software,Inc.

Über die JDA Software Group, Inc.:

JDA Software Group, Inc. (Nasdaq: JDAS) bietet Komplettlösungen für die Optimierung von Handelsprozessen. Das JDA-Portfolio® umfasst Warenwirtschafts-, Filial- und umfangreiche Analyse-Systeme. Die internetfähigen Lösungen werden in über 60 Ländern branchenübergreifend von mehr als 4.600 Kunden aus Handel und Industrie genutzt. Multi-Channel Unternehmen können ebenfalls vom Einsatz der Lösungen profitieren. JDA Software verbessert sowohl unternehmensinterne Arbeitsabläufe sowie externe Abstimmungsprozesse. JDA beschäftigt über 1.200 Mitarbeiter, verteilt auf über 32 Niederlassungen in Großstädten in den USA, Südamerika, Europa, Asien und Australien. Mehr Information erhältlich unter www.jda.com, oder Email an info.de@jda.com.

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