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JDA Software Announces Second Quarter 2002 Client Activity
Diversity of JDA Portfolio Attracts Several Multi-Billion Dollar Companies, Propels Repeat Business and Strengthens Pipeline
Scottsdale, Ariz. - July 22, 2002 - JDA® Software Group, Inc. (Nasdaq:JDAS) announced a sampling of the companies that signed JDA Portfolio® contracts in second quarter 2002. JDA’s diverse Portfolio offering was the force behind a significant new tier one contract with $8.30 billion Castorama-Dubois Investissements, Europe’s largest and the world’s third largest DIY retailer. JDA also increased its presence in the global food industry by signing JDA Portfolio deals with companies such as $1.9 billion Sheetz Incorporated convenience store, $2 billion Rema 1000 Norge AS food wholesaler and retailer, Lowe’s Food Stores, Inc., a division of $1.8 billion Alex Lee Inc., and $3.2 billion The Homeworld Group, Inc. hypermarket and supermarket retailer. In addition to repeat business with such prominent companies as Michaels Stores, Inc., Universal Studios Home Video LLC and Sport Chalet, Inc., deals with multi-billion dollar manufacturers Campbell Soup Company, The Gillette Company, Revlon Consumer Products Corporation, and Cadbury Schweppes reinforced the proliferation of Portfolio Collaborative Solutions™ as the leading choice for manufacturers and their retail trading pairs.
“Our collaborative solutions strategy is working well by generating the fastest growth area in our business while enabling us to strengthen relationships with some of the world’s leading manufacturers,” stated JDA president Hamish Brewer. “Compounded with this fact, the release of Portfolio 2003 in June 2002 marked the culmination of a four-year process to consolidate the leading brand name applications in the retail systems market. Representing a third of the market, our retail customer base continues to vote for JDA with 48 percent of our second quarter license fees coming from existing clients. Now, with Portfolio 2003, the opportunities in our pipeline to expand our customer relationships have just increased by an order of magnitude.”
Commenting on the market outlook, Brewer added, “We currently estimate that less than 50 percent of the Tier One and Tier Two retail market is penetrated by packaged application providers. We are confident that JDA is positioned better than any other vendor in this industry to execute on this substantial opportunity.”
Michaels and Designs, Inc. Choose JDA Advanced Replenishment
Three existing clients increased their JDA investment by licensing Portfolio Advanced Replenishment Solutions by E3®: $2.5 billion Michaels Stores, Inc., the largest specialty retailer of arts and crafts merchandise in the U.S., Designs, Inc., operator of Levi’s® Outlet by Designs, Dockers® Outlet by Designs and Candie’s® outlet stores and Universal Studios Home Video, a unit of $51.1 billion Vivendi UNIVERSAL Entertainment. Universal Studios Home Video also licensed Portfolio Space Management by Intactix™.
Numerous manufacturing and wholesaling companies will also tap the proven capabilities of Portfolio Replenishment™ to achieve bottom line results. In North America, these companies include Carhartt, Inc., a multi-channel clothing manufacturer and Neptune Food Service, Inc., British Columbia’s top foodservice distributor. In Europe, new Portfolio Replenishment clients include Rema 1000 Norge AS, a Norwegian food wholesaler and retailer, Qvale Logistik Danmark A/S, a Denmark-based provider of distribution and logistics services for Duty Free products, and ME Group Ltd., the largest tax and duty free wholesaler in the Nordic countries.
Additionally, Coach Leatherware Co., Stewart & Stevenson Services, Inc., Western Power Sports, Inc., Onninen Finland, Iwan Budnikowsky GmBH & Co. KG, Icopal AS, LGL Holdings Pty. Ltd. and Farmotodo, C.A. expanded their Portfolio Replenishment licenses.
Campbell Soup Company Licenses Portfolio Collaborative Solution
Several manufacturing companies will begin using or have expanded their use of the Portfolio Collaborative Solutions to conduct Collaborative Planning, Forecasting and Replenishment (CPFR®) with their retail trading partners who are also JDA clients. A sampling of these manufacturers in North America includes Campbell Soup Company, The Gillette Company, Revlon Consumer Products and Schering-Plough Healthcare. In Europe these companies include Cadbury Schweppes, Cott Beverage, Kelloggs and Nestlé UK Ltd. With JDA clients such as $15.1 billion Rite Aid Corporation and one of its key trading partners winning the 2002 VICS Collaborative Commerce Achievement Award for “Best in VICS CPFR Implementation,” the number of trading pairs using JDA’s Marketplace Replenish™ web-based private exchange will continue to grow.
“While other vendors are conducting pilots or working with their clients on partial aspects of collaboration, JDA is leading the market with 94 retailer/manufacturer business partners currently relying on our award winning collaborative products to handle significant transaction volumes and fulfill consumer needs profitably on reduced inventory levels,” remarked JDA’s Kevin Stadler, senior vice president of collaborative solutions.
Castorama, Europe’s Largest DIY Retailer, Selects Portfolio Space Management
Contributing to JDA’s record software license revenue in Europe was a sizable Portfolio Space Management Solutions deal with $8.30 billion Castorama-Dubois Investissements, Europe’s largest and the world’s third largest do-it-yourself retailer.
US-based food companies Sheetz and Lowe’s Food as well as China-based The Homeworld Group licensed one or more of the Portfolio Space Management applications. An existing client for Portfolio Merchandise Management System-i™ (MMS®) and Win/DSS® in-store system, The Homeworld Group also signed for Performance Analysis by IDEAS™ and JDA PRISM™ for portable in-store system support. Also in Asia, Puregold Price Club, Inc., a hypermarket chain store retailer based in the Philippines, licensed MMS and Win/DSS.
Other existing JDA clients to license Portfolio Space Management are Canadian Tire Corporation Limited, Canada’s largest hard goods retailer, and Murray’s Discount Auto Stores, Inc. Murray’s also licensed Win/DSS. JDA retail clients that expanded their Portfolio Space Management licenses include $1.4 billion General Nutrition Companies (GNC); Home Hardware Stores, Ltd.; and Ulta Salon, Cosmetics and Fragrance. Réno-Dépôt, Inc., also signed a new contract for Portfolio Space Management as well as for Portfolio Advanced Replenishment. The Canadian home improvement retailer also expanded its IDEAS license.
Consumer goods clients expanding their Portfolio agreements include International Paper Company and Oneida Ltd. A sampling of other clients expanding their investments include: Avery Dennison, Bausch & Lomb, GlaxoSmithKline plc, Sara Lee Household and Body Care and Sara Lee Intimate Apparel. JDA also welcomed to its family of clients Brach’s Confections, Inc., Pilgrim’s Pride Corp., Scholastic Corp., The Robert Mondavi Corporation and Tyson Foods, Inc.
Westlake Hardware, Inc. and Sports Chalet Select JDA’s Advanced Optimization
Existing clients Westlake Hardware, Inc., the largest Ace Hardware dealer in the U.S. and Sport Chalet, a leading specialty sporting goods superstore retailer, signed license agreements for the Portfolio Advanced Optimization solution, JDA Intellect™. Several other existing JDA clients licensed additional JDA Portfolio applications in second quarter. Grupo Attie, S.A. de C.V., a Mexico-based women’s apparel and accessories retailer, licensed Portfolio Advanced Planning Solutions by Arthur™. Carlyle & Co. Jewelers, Inc. upgraded its in-store system license to the latest version of Win/DSS and The Forzani Group, Ltd., Canada’s largest retailer of sporting goods, added Computer Based Training for Win/DSS. Also in Canada, Fly América, Inc. signed for Customer Order Management-i™.
Additionally, Irving Oil Corporation, a refining and energy marketing company, licensed JDA’s Vendor Incentive Management™ application.
Office Depot Among Clients to Expand Agreements
The world’s largest seller of office products, $11.1 billion Office Depot, Inc., expanded its Portfolio Store Systems™ licenses for its operations in France, Japan, Mexico and Guatemala. A number of other companies also expanded their original JDA Portfolio contracts including Foschini, The Pier (Retail) Ltd., Signet Group PLC in JDA’s Europe region and Orient Group Inc. in Asia.
Given the large number of deals that JDA reported this quarter, JDA continues to generate broad appeal, with a diverse series of applications, on a worldwide basis. Several other companies signed for one or more JDA Portfolio products, or expanded their license agreements with JDA in second quarter 2002. Due to the competitive advantages of implementing JDA Portfolio solutions, these companies have requested confidentiality.
About JDA Software Group, Inc.
With more than 4,600 retail, wholesale and manufacturing 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 1,400 associates operating from 36 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 firstname.lastname@example.org.
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: Mr. Brewer’s statement regarding our investments in Portfolio 2003 and client support services continuing to pay off with customer sales; and Mr. Brewer’s statement regarding the substantial strength of our pipeline and our confidence in JDA’s market opportunity. Future events may involve risks and uncertainties, including, but not limited to: our ability to leverage our investments in our products and support services into new customer sales; our ability to close sales that are in our pipeline, particularly during this period of uncertain information technology spending by businesses; and our ability to accurately forecast our market opportunity, particularly in this period of general economic uncertainty; and 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, JDA Portfolio, E3, Intactix, MMS, IDEAS, Win/DSS, Intellect, Arthur, PRISM, Customer Order Management-I, Marketplace Replenish, Portfolio Collaborative Solutions, Portfolio Advanced Replenishment Solutions by E3, Portfolio Replenishment, Portfolio Collaborative Solutions, Portfolio Space Management Solutions by Intactix, Portfolio Space Management, Portfolio Advanced Planning Solutions by Arthur, Portfolio Store Systems, Portfolio Advanced Optimization and Vendor Incentive Management are trademarks or registered trademarks of JDA Software Group, Inc. Any trade, product or service name referenced in this document using the name "JDA" is a trademark and/or property of JDA Software Group, Inc. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders.
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