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Our presentation also includes certain non-GAAP measures, which JDA uses internally in budgeting and performance monitoring activities to gauge our business performance. We believe these measures provide useful information to our investors in evaluating JDA’s ongoing business results. We prepared a reconciliation of each of these measures to the most directly comparable GAAP measures in our press release, which we will post on our website at www.jda.com.This afternoon, JDA reported strong revenue and earnings results for the second quarter of 2010. Adjusted EBITDA increased to $41.3 million or 26% of revenue in the current quarter from $28.7 million or 29% of revenue in Q2 2009. The decline in margin is primarily due to the revenue mix in Q2 2009 which was more heavily weighted to higher margin software and maintenance revenues. On a sequential basis, EBITDA margins increased 200 basis points from 24%. Adjusted earnings per share increased to $0.48, compared to $0.47 for the second quarter of 2009. Adjusted EBITDA and adjusted EPS figures include the conventional items related to the amortization of identifiable intangible assets, stock-based compensation expense and the i2 acquisition transition and restructuring charges which are separately identified in the tear sheet attached to the press release. GAAP EPS was $0.19 for Q2 2010, compared to $0.25 in the same period in 2009, due to higher operating earnings including approximately 5.4 million of acquisition transition and restructuring charges in the current quarter, offset by a higher amortization and interest expense resulting from the i2 acquisition. Total revenues increased to a record $158.4 million for the quarter, including software and subscription revenues of $38 million as compared to total revenues of 99.5 million in software and subscription revenues of $27.6 million for the second quarter of 2009. During the second quarter, approximately 43% of software and subscription sales were from i2 products. As you may recall, Q2 2009 included a significant software sale in the Asia-Pacific region.
As a percentage of total revenue, this was a very large deal that significantly impacted total company margins for 2009. We closed 54 new software deals in the quarter compared to 68 in the second quarter of 2009 including six large transactions of $1 million or more in Q2 2010 compared to 5 in Q2 2009.Our average selling price for the trailing 12 months ended June 30, 2010 was $608,000 compared to $618,000 in the first quarter of 2010, the seventh consecutive quarter our trailing 12 month ASP has exceeded $600,000. On average, we continue to close more large transactions and we expect this trend to continue. Maintenance revenue increased to $60.6 million compared to $44.4 million in the second quarter of 2009 and the maintenance gross margin increased to almost 77% from 75% in Q2 of 2009. Second quarter 2010 maintenance revenues include a 25% contribution from the acquired i2 product line. The gross margin increase was driven by the combined strength in our software license to sales over the last year that generated new maintenance revenue streams. In addition, our customer retention rate on expiring maintenance contracts continued to be strong during the second quarter as we reported 97.3% annualized retention rate as compared to a 93.8% annualized retention rate in Q2 of 2009. While overall retention is exceeding our expectations, separately for i2, maintenance renewals are lagging but not outside of our expectation. At June 30, we had four million of maintenance revenue suspended until future periods when customer negations are complete. We currently believe the majority of this amount should be recognized over the remaining two quarters of this year. Lastly, included in maintenance revenue is a favorable year-over-year change in foreign currency rates of approximately $700,000. Services revenue increased to $59.8 million from $27.5 million in Q2, 2009. Billable hours increased by 30% from Q1 2010 and the utilization rate from 4/2/2010 increased from 57% in Q2 2009 while it is comparable to our first quarter at 59%. Read the rest of this transcript for free on seekingalpha.com