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JDA Software Announces Second Quarter 2003 Client Activity
Dollar Tree Stores and The Bombay Company License Portfolio Applications
“The comprehensive restructuring JDA undertook at the end of 2002 with our Customer Value Program has begun to produce tangible results. In second quarter 2003, a record 92 percent of software license revenues came from our existing clients,” commented JDA president Hamish Brewer. “By focusing on our most important asset - our client base of more than 4,800 retailers and their suppliers - we’ve generated substantial repeat business, which provides a self-sustaining revenue base for our entire company,” stated Brewer.
“Our collaborative solutions strategy is also starting to deliver substantial benefits. In the second quarter, this new segment of our business generated over $13 million in revenue. JDA’s award winning solutions are now starting to deliver substantial benefits to the industry and revenues to our business,” added Brewer.
JDA Strengthens Leading Market Position with Key E3 Replenishment Deals
By closing several significant deals for Portfolio Advanced Replenishment by E3® this quarter, JDA continues to lead the market with its solutions proven to help companies optimize in-stock and service levels on a reduced inventory investment. To help further improve sales and inventory management while better utilizing labor costs, existing JDA client Dollar Tree Stores, Inc., the nation’s largest $1.00 discount variety store chain, licensed Advanced Store Replenishment by E3®. Other clients that signed for Store Replenishment™ include Booker Cash & Carry Ltd, the UK’s largest wholesaler to independent retailers and caterers, and Grupo Comercial Chedraui, a Mexico-based supermarket chain.
ATK Ammunition and Related Products Group, a division of $2.1 billion Alliant Techsystems aerospace and defense company, licensed Vendor Managed Replenishment by E3® to more efficiently replenish its small caliber ammunition products on its retail partners’ store shelves. ATK Ammunition also expanded its Space Planning by Intactix™ license.
Two food industry companies signed deals to expand the use of JDA’s Advanced Warehouse Replenishment by E3® application across their respective enterprises: GFS Canada Company, Inc., a division of $2.7 billion Gordon Food Service, and. $1.3 billion D&S, S.A., Chile’s largest supermarket retailer. D&S also signed an enterprise contract for Store Replenishment™ and the network optimization capability of Warehouse Replenishment™.
Other companies expanding their Portfolio Replenishment licenses include: The Elder-Beerman Stores Corp. and L.L. Bean in North America; Amgros, Axfood IT AB, Centros Comerciales Carrefour S.A., Conforama Management Services, Iceland Foods Plc, and Co-operative Group in Europe; and Wellcome Supermarkets and Brazin Limited in Asia Pacific.
With leading companies such as Headland Foods Ltd., American Air Filter, Wilson Industries and US Gypsum Co./USG Interiors Inc. striving to better manage their supply chains, JDA increased its number of trading partners relying on Portfolio Collaborative Solutions™ to nearly 160 trading pairs in second quarter, up over 70 percent from second quarter 2002.
Existing Clients Invest in Additional Portfolio Applications
Several JDA clients licensed additional Portfolio applications to drive more value from their JDA investment. The Bombay Company, an international retailer of home accessories, wall decor and furniture, and Telstra Corporation Ltd., Australia’s premier telecommunications, mobile and information services company, significantly expanded their licenses for Arthur planning applications. The Bombay Company also licensed JDA’s Space Planning™ and Floor Planning™ applications.
JDA client The Bargain Shop Holdings, Inc., a Canadian based discount merchandise retailer, signed for Performance Analysis by IDEAS™ data warehouse and $1.4 billion PETCO Animal Supplies, Inc. licensed Win/DSS® in-store system to use in an unlimited number of stores. Also, Office Depot expanded its Win/DSS contract to support additional locations in Mexico, France, Spain and Japan.
Price Chopper, a division of $3.2 billion Associated Wholesale Grocers, the nation’s second largest retailer-owned grocery wholesaler, signed for VistaRetail™, one of the applications that JDA acquired on May 5, 2003 from Vista Software Solutions. VistaRetail allows retailers to receive and respond to product and promotion information from suppliers based on subscriptions managed in the application.
Margaritaville Holdings, operator of retail and restaurant locations within Universal Studios theme parks, is a new JDA client that signed for Portfolio Merchandise Management System-i™.
Portfolio Space Management License Activity Remains Strong
Numerous JDA clients expanded their investment in JDA’s space management solutions. A sampling of these companies include L’Oréal USA for its Maybelline division, Revlon, Inc., Bayer Corporation, The Dannon Company, Church & Dwight Company, Inc., Fresh Express, Henkel Corporation’s Henkel’s Consumer Adhesives division, Pfizer, Inc. and Sara Lee Corporation. European based Nestle Cereals, Prym Consumer GmbH & Co. and Constance Carroll Holdings Ltd. and Australia based Barloworld Coatings Pty Ltd. and Peters & Brownes Foods Ltd. also expanded their JDA space management agreements.
A partial listing of consumer goods companies that licensed JDA’s space management solutions for the first time include: Gateway, Inc., LeapFrog Enterprises, Inc., Top-Flite Golf Company, Pinnacle Foods Corporation, and Pacific Cycle LLC. An example of retailers worldwide that expanded their JDA space management licenses include Autozone, Inc., Wickes Building Supplies and Coles Supermarkets.
Several other companies signed for one or more Portfolio products, or expanded their license agreements with JDA in second quarter 2003. Due to the competitive advantages of implementing JDA’s Portfolio solutions, these companies have requested confidentiality.
About JDA Software Group, Inc.
With more than 4,800 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 1,200 associates operating from 32 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 that our repeat business provides a self-sustaining revenue base, our statement that VMR will increase efficiencies, and other statements concerning our future prospects for business growth. Future events may involve risks and uncertainties, including, but not limited to, uncertainties include the fact that our existing client base may not continue to license new products from us, the risk that not all users will enjoy the same benefits from using our products, 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, Portfolio Merchandise Management System-I, VistaRetail, Win/DSS, Performance Analysis by IDEAS, Advanced Warehouse Replenishment by E3, Advanced Store Replenishment by E3, Space Planning by Intactix, Space Planning, Floor Planning, Vendor Managed Replenishment by E3, Portfolio Collaborative Solutions 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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