JDA Software (JDAS) 8-K JDA Software Announces Third Quarter 2009 Results

Exhibit 99.1

•		JDA Investor Relations Contacts:
•		Pete Hathaway, JDA Software Group
•		Executive Vice President
•		and Chief Financial Officer
•	JDA Software Group, Inc. NEWS RELEASE	Tel: (480) 308-3000
•		Lawrence Delaney, Jr., The Berlin Group
		Tel: (714) 734-5000; larry@berlingroup.com

JDA Software Announces Third Quarter 2009 Results

And Reiterates Second Half Guidance

Scottsdale, Ariz. — October 19, 2009 — JDA^® Software Group, Inc.(NASDAQ: JDAS) today announced financial results for the third quarter ended September 30, 2009. JDA reported total revenues of $95.9 million and software revenues of $17.3 million for third quarter 2009, compared to total revenues of $98.4 million and software revenues of $23.0 million for third quarter 2008. For the nine months ended September 30, 2009, JDA reported total revenues of $278.7 million and software revenues of $60.2 million, compared to total revenues of $284.1 million and software revenues of $58.6 million for the nine months ended September 30, 2008.

     “We guided to a sequentially lower third quarter software sales result, and the actual third quarter results closed in line with our expectations,” saidJDA CEO Hamish Brewer.“We also guided to a strong software sales result in the fourth quarter and today we can reiterate our guidance for second half 2009, including projected software sales between $26 million to $30 million for fourth quarter 2009. Supported by the strong performance from consulting services, I am pleased with the overall EBITDA margin of 25% and the $20.0 million of cash flow generated from operations in third quarter 2009.”

Third Quarter 2009 Financial Summary

§	Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $24.1 million in the third quarter 2009, compared to $27.0 million in third quarter 2008.
§	Adjusted non-GAAP earnings for third quarter 2009 were $0.40 per share, compared to $0.42 per share in third quarter 2008, and exclude amortization of acquired software technology and intangibles, restructuring charges, stock-based compensation and bank charges on a credit facility commitment for a prior year terminated acquisition. Adjusted non-GAAP earnings for third quarter 2009 also exclude $8.6 million of cash consideration paid in excess of carrying value on the repurchase of redeemable preferred stock.
§	GAAP income applicable to common shareholders for third quarter 2009 was a net loss of $2.3 million or ($0.07) per share, which includes $8.6 million of cash consideration paid in excess of carrying value on the repurchase of redeemable preferred stock, compared to GAAP income applicable to common shareholders of $8.2 million or $0.23 per share in third quarter 2008.

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§	Service revenues increased 16% to $33.6 million in third quarter 2009 compared to third quarter 2008, and service margins improved year-over-year from 21% in third quarter 2008 to 26% in third quarter 2009.
§	Cash flow from operations was $20.0 million in third quarter 2009, compared to cash flow of $18.8 million in third quarter 2008.
§	Cash and cash equivalents were $85.5 million at September 30, 2009, compared to $32.7 million at December 31, 2008, and there was no debt at the end of either period. During third quarter 2009, approximately $30.1 million in cash was used to repurchase redeemable preferred stock.

Third Quarter 2009 Highlights

• Regional Sales Performance:JDA closed a total of 57 new software deals during third quarter 2009, including one contract exceeding $1.0 million. The following presents a high level summary of regional performance:

§	JDA closed $12.6 million in software deals in its Americas region during third quarter 2009, compared to $17.5 million in third quarter 2008. Customers that signed licenses included: The Sports Authority, Ripley’s Comercial ECCSA S.A. and Grupo Comercial Chedraui, S.A. de C.V.
§	Software sales in JDA’s Europe, Middle East and Africa (EMEA) region were $4.1 million in third quarter 2009, compared to $3.5 million in third quarter 2008. New software deals in the EMEA region included: Co-operative Group Limited, Aspiag Service Italia, NorgesGruppen ASA and N.V. Trinfover S.A.
§	JDA’s Asia Pacific region posted software sales of $542,000 in third quarter 2009, compared to $2.0 million in third quarter 2008. Wins in this region included: CitiMart Philippines and Shanxi Meetall United Supermarket Co. Ltd.

• Positioned for Growth and Scale:JDA announced changes to its senior management team during the quarter, including Pete Hathaway who joined JDA as Executive Vice President and Chief Financial Officer, and Jason Zintak who assumed the role of Executive Vice President of Sales and Marketing. Mr. Hathaway and Mr. Zintak are seasoned executives who have the talent, experience and leadership abilities to support JDA’s long-term growth plans.

• China Growth Strategy Underway:Just one quarter after announcing an initiative to drive growth in China through a combination of organic expansion and a wider partner network, JDA has secured its first major win with Shanxi Meetall. This promising start to JDA’s program of growth

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supports the belief that the Chinese market is now ready and willing to buy advanced planning and optimization solutions.

Nine Month 2009 Results

• Adjusted EBITDA increased to $69.5 million for the nine months ended September 30, 2009, compared to $69.3 million for the nine months ended September 30, 2008.

• Adjusted non-GAAP earnings for the nine months ended September 30, 2009 were $1.24 per share, compared to adjusted non-GAAP earnings per share of $1.04 for the nine months ended September 30, 2008, and exclude amortization of acquired software technology and intangibles, restructuring charges, stock-based compensation and banking charges on a credit facility commitment for a prior year terminated acquisition. Adjusted non-GAAP earnings for the nine months ended September 30, 2009 also exclude $8.6 million of cash consideration paid in excess of carrying value on the repurchase of redeemable preferred stock.

• GAAP income applicable to common shareholders for the nine months ended September 30, 2009 was $9.2 million or $0.26 per share, which includes $8.6 million of cash consideration paid in excess of carrying value on the repurchase of redeemable preferred stock, compared to GAAP income applicable to common shareholders of $16.7 million or $0.47 per share in the nine months ended September 30, 2008.

• Cash flow from operations in the first nine months of 2009 was $80.5 million, compared to $70.7 million for the nine months ended September 30, 2008.

Conference Call Information

          JDA Software Group, Inc. will host a conference call at 4:45 p.m. (Eastern) today to discuss earnings results for its third quarter ended September 30, 2009. To participate in the call, dial 1-877-941-2068 (United States) or 1-480-629-9712 (International) and ask the operator for the “JDA Software Group, Inc. Third Quarter 2009 Earnings Conference Call.” To participate in the webcast, visit the following web page at the time of the conference call:http://viavid.net/dce.aspx?sid=00006AB3.

          A replay of the conference call will begin Monday, October 19, 2009 at 7:45 p.m. (Eastern) and will end on Thursday, November 19, 2009 at 11:59 p.m. (Eastern). You can hear the replay by dialing 1-800-406-7325 (United States) or 1-303-590-3030 (International) using access 4164779.

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About JDA Software Group, Inc.

          JDA^® Software Group, Inc. (NASDAQ: JDAS) is the world’s leading supply chain solutions provider, helping companies optimize operations and improve profitability. JDA drives business efficiency for its global customer base of more than 5,800 retailers, manufacturers, wholesaler-distributors and services industries companies through deep domain expertise and innovative solutions. JDA’s combination of unmatched services, together with its integrated yet modular solutions for merchandising, supply chain planning and execution and revenue management, leverage the strong heritage and knowledge capital of market leaders including Manugistics, E3, Intactix and Arthur. When supply chain results matter, companies turn to JDA. For more information about JDA, visitwww.jda.com or contact us atinfo@jda.com or call +1.800.479.7382 / +1.480.308.3000.

“Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995

          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. Forward-looking statements are generally accompanied by words such as “will,” and “expect” and other words with forward-looking connotations. In this press release, such forward-looking statements include, without limitation, Mr. Brewer’s statement that the Company is reiterating its guidance for second half 2009 including projected software sales between $26 million to $30 million for fourth quarter 2009. The occurrence of future events may involve a number of risks and uncertainties, including, but not limited to: (i) the possibility that the current economic downturn will persist and cause a decline in the demand for our solutions, thereby negatively impacting our financial results; and, (ii) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. Additional information relating to the uncertainty affecting our business is contained in our filings with the SEC. As a result of these and other risks, actual results may differ materially from those predicted. JDA is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information

          This press release and the related conference call contain non-GAAP financial measures. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement consolidated financial statements prepared under GAAP. Management’s presentation of non-GAAP financial measures is intended to be supplemental in nature and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures.

Use and Economic Substance of Non-GAAP Financial Measures Used by JDA

     The Company uses non-GAAP measures of performance, including adjusted operating income, EBITDA (earnings before interest, taxes, depreciation and amortization) and earnings per share, in its public statements. Management uses, and chooses to disclose, these non-GAAP financial measures because (i) such measures provide an additional analytical tool to clarify the Company’s results from operations and help the Company to identify underlying trends in its results of operations; (ii) the Company uses non-GAAP earnings measures, including EBITDA, as a measure of profitability because such measures help the Company compare its performance on a consistent basis across time periods; and (iii) these non-GAAP measures are employed by the Company’s management in its own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting. The Company also internally uses adjusted EBITDA measures for determining (a) compliance with certain financial covenants in its credit agreement and (b) executive and employee compensation. Set forth below are additional reasons why specific items are excluded from the Company’s non-GAAP financial measures:

§ Amortization charges for acquired technology are excluded because they result from prior acquisitions, rather than ongoing operations, and absent additional acquisitions, are expected to decline over time.

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§	Amortization charges for other intangibles are excluded because they are non-cash expenses, and while tangible and intangible assets support our business, we do not believe the related amortization costs are directly attributable to the operating performance of our business.
§	Restructuring charges and adjustments to acquisition-related reserves are significant non-routine expenses that cannot be predicted and typically relate to a change in our business model or to a change in our estimate of the costs to complete a plan to exit an activity of an acquired company. The exclusion of these charges promotes period-to-period comparisons and transparency. Such charges are primarily related to severance costs and/or the disposition of excess facilities driven by the changes to our business model.
§	Stock-based compensation is not an expense that typically requires or will require cash settlement by the Company.

Material Limitations (and Compensation thereof) Associated with the Use of Non-GAAP Financial Measures

          Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company’s GAAP results. In the future, the Company expects to continue reporting non-GAAP financial measures excluding items described above and the Company expects to continue to incur expenses similar to the non-GAAP adjustments described above. Accordingly, exclusion of these and other similar items in our non-GAAP presentation should not be construed as an inference that these costs are unusual, infrequent or non-recurring.

Some of the limitations in relying on non-GAAP financial measures are:

§	Amortization of acquired technology and intangibles, though not directly affecting our current cash position, represent the loss in value as the technology in our industry evolves, is advanced or is replaced over time. The expense associated with this loss in value is not included in the non-GAAP net income presentation and therefore does not reflect the full economic effect of the ongoing cost of maintaining our current technological position in our competitive industry which is addressed through our research and development program.
§	The Company may engage in acquisition transactions in the future. In addition, we incur other restructuring charges from time to time when necessary to adjust our business model. Restructuring related charges may therefore continue to be incurred and should not be viewed as non-recurring.
§	Stock-based compensation is an important component of our incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future.
§	Other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative measure.

     We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP financial measures only supplementally. We also provide reconciliations of each non-GAAP financial measure to our most directly comparable GAAP measure, and we encourage investors to review carefully those reconciliations.

Usefulness of Non-GAAP Financial Measures to Investors

          The Company believes that the presentation of these non-GAAP financial measures is warranted for several reasons. First, such non-GAAP financial measures provide investors and management an additional analytical tool for understanding the Company’s financial performance by excluding the impact of items which may obscure trends in the core operating performance of the business. Second, since the Company has historically reported non-GAAP results to the investment community, the Company believes the inclusion of non-GAAP numbers provides consistency and enhances investors’ ability to compare the Company’s performance across financial reporting periods.

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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts, unaudited)

	September 30,			December 31,
	2009			2008
ASSETS
Current Assets:
Cash and cash equivalents	$	85,477		$	32,696
Accounts receivable, net		60,236			79,353
Income tax receivable		2,298			316
Deferred tax asset		23,221			22,919
Prepaid expenses and other current assets		18,292			14,223
Total current assets		189,524			149,507
Non-Current Assets:
Property and equipment, net		41,608			43,093
Goodwill		135,275			135,275
Other Intangibles, net:
Customer lists		104,848			121,719
Acquired software technology		21,206			24,160
Trademarks		326			1,335
Deferred tax asset		35,996			44,815
Other non-current assets		7,272			4,872
Total non-current assets		346,531			375,269
Total Assets	$	536,055		$	524,776
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	8,574		$	3,273
Accrued expenses and other liabilities		39,381			52,090
Deferred revenue		71,852			62,005
Total current liabilities		119,807			117,368
Non-Current Liabilities:
Accrued exit and disposal obligations		7,269			8,820
Liability for uncertain tax positions		7,447			7,093
Total non-current liabilities		14,716			15,913
Total Liabilities		134,523			133,281
Redeemable Preferred Stock		—			50,000
Stockholders’ Equity:
Preferred stock, $.01 par value; authorized 2,000,000 shares; none issued or outstanding		—			—
Common stock, $.01 par value; authorized, 50,000,000 shares; issued 36,269,083 and 32,458,396 shares, respectively		363			325
Additional paid-in capital		361,740			305,564
Deferred compensation		(7,681	)		(2,915	)
Retained earnings		65,517			56,268
Accumulated other comprehensive income (loss)		3,589			(2,017	)
Less treasury stock, at cost, 1,774,006 and 1,307,317 shares, respectively		(21,996	)		(15,730	)
Total stockholders’ equity		401,532			341,495
Total liabilities and stockholders’ equity	$	536,055		$	524,776

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JDA SOFTWARE GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except earnings per share data, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
REVENUES:
Software licenses	$	17,250		$	23,011		$	60,160		$	58,593
Maintenance services		45,010			46,388			132,378			138,843
Product revenues		62,260			69,399			192,538			197,436
Consulting services		30,852			26,437			78,965			78,901
Reimbursed expenses		2,747			2,610			7,174			7,780
Service revenues		33,599			29,047			86,139			86,681
Total revenues		95,859			98,446			278,677			284,117
COST OF REVENUES:
Cost of software licenses		580			613			2,417			2,009
Amortization of acquired software technology		966			1,309			2,954			4,270
Cost of maintenance services		10,883			11,513			32,416			34,145
Cost of product revenues		12,429			13,435			37,787			40,424
Cost of consulting services		22,219			20,315			61,732			61,084
Reimbursed expenses		2,747			2,610			7,174			7,780
Cost of service revenues		24,966			22,925			68,906			68,864
Total cost of revenues		37,395			36,360			106,693			109,288
GROSS PROFIT		58,464			62,086			171,984			174,829
OPERATING EXPENSES:
Product development		12,495			13,288			37,732			40,196
Sales and marketing		15,888			15,899			46,310			47,738
General and administrative		12,305			10,440			35,001			32,406
Amortization of intangibles		5,753			6,075			17,880			18,227
Restructuring charges and adjustments to acquisition- related reserves		2,543			399			6,705			3,954
Total operating expenses		48,984			46,101			143,628			142,521
OPERATING INCOME		9,480			15,985			28,356			32,308
Interest expense and amortization of loan fees		(346	)		(2,353	)		(971	)		(7,313	)
Interest income and other, net		1,006			51			886			2,127
INCOME BEFORE INCOME TAXES		10,140			13,683			28,271			27,122
Income tax provision		3,877			5,441			10,429			10,451
NET INCOME	$	6,263		$	8,242		$	17,842		$	16,671
Consideration paid in excess of carrying value on the repurchase of redeemable preferred stock		(8,593	)		—			(8,593	)		—
INCOME APPLICABLE TO COMMON SHAREHOLDERS	$	(2,330	)	$	8,242		$	9,249		$	16,671
EARNINGS PER SHARE APPLICABLE TO COMMON SHAREHOLDERS:
Basic earnings per share	$	(.07	)	$	.24		$	.26		$	.49
Diluted earnings per share	$	(.07	)	$	.23		$	.26		$	.47
SHARES USED TO COMPUTE EARNINGS PER SHARE:
Basic earnings per share		33,505			34,528			35,076			34,223
Diluted earnings per share		33,505			35,432			35,329			35,261

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JDA SOFTWARE GROUP, INC.
NON-GAAP MEASURES OF PERFORMANCE
(in thousands, except share data, unaudited)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
NON-GAAP OPERATING INCOME AND ADJUSTED EBITDA
Operating income (GAAP BASIS)	$	9,480		$	15,985		$	28,356		$	32,308
Adjustments for non-GAAP measures of performance:
Add back amortization of acquired software technology		966			1,309			2,954			4,270
Add back amortization of intangibles		5,753			6,075			17,880			18,227
Add back restructuring charges		2,543			399			6,705			3,954
Add back stock-based compensation		2,845			911			6,412			3,135
Adjusted non-GAAP operating income		21,587			24,679			62,307			61,894
Add back depreciation		2,482			2,352			7,209			7,412
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization)	$	24,069		$	27,031		$	69,516		$	69,306
NON-GAAP OPERATING INCOME AND ADJUSTED EBITDA, as a percentage of revenue
Operating income (GAAP BASIS)		10	%		16	%		10	%		12	%
Adjustments for non-GAAP measures of performance:
Amortization of acquired software technology		1	%		2	%		1	%		2	%
Amortization of intangibles		6	%		6	%		6	%		6	%
Restructuring charges		3	%		—	%		3	%		1	%
Stock-based compensation		3	%		1	%		2	%		1	%
Adjusted non-GAAP operating income		23	%		25	%		22	%		22	%
Depreciation		2	%		2	%		3	%		2	%
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization)		25	%		27	%		25	%		24	%
NON-GAAP EARNINGS PER SHARE
Income before income taxes	$	10,140		$	13,683		$	28,271		$	27,122
Add back amortization of acquired software technology		966			1,309			2,954			4,270
Add back amortization of intangibles		5,753			6,075			17,880			18,227
Add back restructuring charges		2,543			399			6,705			3,954
Add back stock-based compensation		2,845			911			6,412			3,135
Add back bank charges on credit facility commitment		—			637			—			637
Adjusted income before income taxes		22,247			23,014			62,222			57,345
Adjusted income tax expense		8,009			8,285			22,261			20,644
Adjusted net income	$	14,238		$	14,729		$	39,961		$	36,701
Adjusted non-GAAP diluted earnings per share	$	0.40		$	0.42		$	1.24		$	1.04
Shares used to compute non-GAAP diluted earnings per share		35,678			35,432			32,348			35,261

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	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2009			2008			2009			2008
CASH FLOW INFORMATION
Net cash provided by operating activities	$	20,019		$	18,761		$	80,528		$	70,672
Net cash used in investing activities:
Payment of direct costs related to acquisitions	$	(2,945	)	$	(2,911	)	$	(4,431	)	$	(5,434	)
Purchase of other property and equipment		(4,134	)		(1,568	)		(5,541	)		(6,065	)
Proceeds from disposal of property and equipment		8			46			62			115
	$	(7,071	)	$	(4,433	)	$	(9,910	)	$	(11,384	)
Net cash provided by financing activities:
Issuance of common stock under equity plans	$	9,882		$	307		$	14,524		$	6,014
Redemption of Series B convertible preferred stock		(28,068	)		—			(28,068	)		—
Purchase of treasury stock		(2,367	)		(239	)		(6,266	)		(1,902	)
Principal payments on term-loan agreement		—			(437	)		—			(19,086	)
Loan origination fees		—			(3,375	)		—			(3,375	)
Other, net		—			—			—			(1,638	)
	$	(20,553	)	$	(3,744	)	$	(19,810	)	$	(19,987	)