JDA Software ( JDAS) said its second-quarter revenue declined year over year, and the company, which recently acquired Manugistics, cut its forecast for 2006.

Revenue for the quarter fell to $51.8 million from $54.9 million last year, while software sales dropped to $10.4 million from $15.3 million a year ago.

JDA, a maker of software for retail, manufacturing and wholesale-distribution customers, said earnings reached only about one-third of the level achieved in the prior year, falling to $1.1 million, or 4 cents a share, from $3.6 million and 12 cents a share.

Excluding the amortization of acquired software technology and intangibles, as well as a restructuring charge, JDA would have earned 9 cents a share in the second quarter. Analysts were looking for a profit of 8 cents a share with revenue of $51.2 million.

As a consequence of its software segment's performance, JDA reduced its full-year total revenue projection to between $290 million and $299 million. Software revenue should be $61 million to $70 million. The company is expecting earnings before items of 72 cents to 88 cents a share.

Wall Street's full-year earnings estimate is 74 cents, and the revenue target is $292.4 million.

"We believe our acquisition of Manugistics will have an immediate positive impact on earnings in the second half of 2006," JDA said of the transaction that closed July 5. "We also look forward to more predictable earnings as our financial model has changed with the acquisition, and we now expect over 45% of our total revenues to come from a stable maintenance base."

Shares of JDA slipped 8 cents to $13.60 in extended trading Monday.