JDA Software


said its third-quarter revenue rose 60% year over year, it still missed Street targets.

The maker of software for retail, manufacturing and wholesale-distribution customers on a GAAP basis earned $921,000, or 3 cents a share, a dime less than a year ago, or $3.75 million.

Excluding nonrecurring items, the company earned 20 cents a share, 5 cents worse than Thomson First Call consensus, but 3 cents better than the same period a year ago.

After hours, investors immediately sent the shares down 12%, to $14.40; recently they were off 6.2% to $15.35.

For the quarter ended Sept. 30, 2006, revenue jumped to $89.2 million from $55.6 million last year, while software sales totaled $13.7 million, a decrease from $17.4 million a year ago.

Consensus was for total revenue of $93.4 million.

The Scottsdale, Ariz.-based-company said its


acquisition, which closed on July 5, added $36.7 million to revenue, including $3.2 million of software revenue during the third quarter.

Expenses for the quarter increased to $48 million, up 63% from $29.4 million last year.

JDA CEO Hamish Brewer said the company "expects to reach the lower end of its EBITDA

earnings before interest, taxes, depreciation and amortization guidance for the second half of 2006 of approximately $35 million."

The software maker said it might incur a noncash charge to GAAP third-quarter earnings of about $3.4 million depending on whether JDA records the conversion option of preferred stock issued to Thomas Cressey on July 5.