JDA Software (JDAS) 8-K JDA Software Reports102% Sequential Increase in Software Revenue;Cash Flow From Operations Totals $12.9 Million in Second Quarter 2003

Exhibit 99.1 \

•		Investor Relations Contacts:
•	JDA Software Group, Inc.	Lawrence Delaney, Jr., The Berlin Group
•		Tel: 714-734-5000; larry@berlingroup.com
•	NEWS RELEASE	Kris Magnuson, Exec. VP/CFO
•		JDA Software Group, Inc; Tel: 480-308-3000

JDA Software Reports102% Sequential Increase in Software Revenue;

Cash Flow From Operations Totals $12.9 Million in Second Quarter 2003

Scottsdale, Ariz. – July 21, 2003 – JDA® Software Group, Inc.today announced financial results for the second quarter ended June 30, 2003. JDA reported second quarter 2003 revenues of $53.0 million versus $41.3 million in first quarter 2003 and $57.6 million in second quarter 2002. In second quarter 2003 product revenues, which include software licenses and maintenance services, were $32.8 million, a 36% increase over first quarter 2003 and 2% ahead of the prior year quarter.

     JDA achieved $0.09 adjusted non-GAAP earnings per share for second quarter 2003, excluding amortization of acquired software technology and intangibles, relocation costs, and gain on sale of office facility, surpassing analysts’ consensus earnings estimate of $0.03 per share. JDA reported adjusted non-GAAP earnings per share of $0.18 in second quarter 2002. The company reported GAAP net income of $1.3 million, or $.05 per share, in second quarter 2003 compared with a GAAP net income of $2.7 million, or $0.09 per share, in second quarter 2002, and a GAAP net loss of $2.2 million, or $(0.08) per share, in first quarter 2003. Cash flow from operations increased to $12.9 million for second quarter 2003, a 155% increase over first quarter 2003 and 2% ahead of the same period in 2002.

     “JDA’s better-than-anticipated second quarter results can be attributed to strong top-line performance – particularly in software licenses – and disciplined financial controls,” saidJDA CEO Jim Armstrong. “A key metric, DSOs, were 56 days in second quarter 2003, down significantly from 81 days last quarter and 100 days in the year-ago quarter.”

     “The Americas region, comprised of the U.S., Canada and Latin America, accounted for the bulk of the increase in sequential software license revenues in second quarter 2003. Software license revenues in the Americas totaled $11.1 million in second quarter 2003 compared with $4.6 million in first quarter 2003, an increase of 141% and represented the first year over year gain in license deals in this region in five quarters,” statedJDA President Hamish Brewer.

     “In addition, we closed four software license contracts each of $1 million or greater in second quarter 2003, which we regard as an important indication of increased willingness by our customers to invest in IT projects. Based on clients’ strong endorsement of the product direction for JDA Portfolio® at our annual user conference in May, coupled with early benefits starting to flow from our JDA Customer Value Program, we believe that our competitive position and business outlook are very positive,” added Brewer.

SECOND QUARTER 2003 HIGHLIGHTS

•	SALES:JDA closed $15.5 million in software licenses deals during the quarter, driven by 141% sequential and 28% year-over-year license revenue growth in the Americas region. Sales for Europe and Asia Pacific were down 54% over second quarter 2002 due primarily to business delays brought on by the SARS outbreak in Asia Pacific and continued weak economic conditions in Europe.
	In terms of product lines, Portfolio Space Management™ solutions featuring the Intactix brand enjoyed a record quarter, with sales up 166% sequentially and 59% over second quarter 2002. Portfolio Advanced Replenishment™ solutions featuring the E3 brand also posted a strong quarter, with sales up 211% sequentially and 12% over second quarter 2002.
•	COLLABORATIVE MARKET:In JuneCVS CorporationandThe Gillette Companywon the 2003 VICS Collaborative Commerce Achievement Award for “Best in VICS CPFR® Implementation,” marking the third consecutive year that trading pairs relying on Portfolio Collaborative Solutions™ received this prestigious award. Nearly 160 trading partners worldwide are live and operational on this collaborative solution, up over 70% from second quarter 2002.
•	PRODUCT DEVELOPMENT: Increasing product development spending to $12.6 million in second quarter 2003, up 21% over prior year’s quarter, JDA heavily invested in both its current product line, including the market leading E3 branded products, as well as its next generation of Microsoft.Net products. In the quarter, JDA announced the commercial availability of its new thin-client store system, Portfolio POS™.

     At June 30, 2003, JDA had $114.3 million in cash and marketable securities compared with $101.9 million at December 31, 2002, an increase of 12%. The company had no long-term debt and $27.3 million in deferred revenue at June 30, 2003.

SIX-MONTH 2003 RESULTS

     For the six months ended June 30, 2003, total revenues were $94.2 million compared with $116.7 million for the same period in 2002. Product revenues were $56.9 million versus $64.8 million in 2002. JDA reported $0.06 adjusted non-GAAP earnings per share, excluding amortization of acquired software technology and intangibles, relocation costs, and gain on sale of office facility, versus $0.37 adjusted non-GAAP earnings per share for the six months ended June 30, 2002, excluding amortization of acquired software technology and intangibles, in-process research and development costs, and restructuring, asset disposition and other changes. JDA reported a GAAP net loss of $947,000, or $(0.03) per share compared

with GAAP net income of $7.2 million, or $0.25 per share, for the same period in 2002. Cash flow from operations was $18.0 million for the first six months of 2003 versus $17.4 million for the same period in 2002.

CONFERENCE CALL INFORMATION

     JDA will hold a conference call discussing financial results for the second quarter and first half 2003 today at approximately 4:45 pm Eastern Time. To participate in the call, dial 1-800-921-9431 (United States) or 1-973-935-8505 (International) and ask the operator for the “JDA Second Quarter 2003 Earnings Conference Call.” A replay of the conference call will begin July 21, 2003 at 9:00 p.m. Eastern Time and will end on August 4, 2003 at 12:00 a.m. Eastern Time. Callers can hear the replay by dialing 1-877-519-4471 (United States) or 1-973-341-3080 (International) using Replay Pin Number 4018628.

ABOUT JDA SOFTWARE

     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 1,300 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 emailinfo@jda.com.

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     This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, Mr. Brewer’s statements that we regard the closure of four software license contracts each of $1 million or greater in second quarter 2003 as an important indication of increased willingness by our customers to invest in IT projects, and the belief that our competitive position and business outlook are very positive based upon our client’s strong endorsement of the product direction for JDA Portfolio® at our annual user conference and the early benefits starting to flow from our Customer Value Program, have forward-looking implications. The occurrence of future events may involve a number of risks and uncertainties, including but limited to: the risk to our operating results of ongoing uncertain economic conditions and the inherent unpredictability on a quarterly basis of retailers’ demand for our products and services; the risk that the CVP initiative will not result in expected benefits; and other risks detailed from time to time in the “Risks Factors” section of our filings with the Securities and Exchange Commission. As a result of these and other factors, actual results may differ materially from those predicted. We undertake no obligation to update information in this release. We also do not adopt or endorse any of the analysts’ reports that form the basis for the consensus earnings estimate referenced in the second paragraph of the press release.

     “JDA” and “JDA Portfolio” are trademarks or registered trademarks of JDA Software Group. Any trade, product or service name referenced in this document using the name “JDA” is a trademark and/or property of JDA Software Group. All other trade, product, or service names referenced in this release may be trademarks or registered trademarks of their respective holders’.

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

			June 30,		December 31,
			2003		2002
CASH AND INVESTMENTS			$	114,347	$	101,855
ACCOUNTS RECEIVABLE, net				32,926		47,077
OTHER CURRENT ASSETS				24,093		25,322
PROPERTY AND EQUIPMENT, net				21,128		21,337
GOODWILL AND OTHER INTANGIBLES, net				117,402		116,436
PROMISSORY NOTE RECEIVABLE				2,948		3,017
		Total assets	$	312,844	$	315,044
DEFERRED REVENUE			$	27,270	$	23,331
OTHER CURRENT LIABILITIES				24,355		29,977
DEFERRED TAX LIABILITY				2,944		4,980
STOCKHOLDERS’ EQUITY				258,275		256,766
	Total liabilities and stockholders’ equity		$	312,844	$	315,054

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

			Three Months Ended				Six Months Ended
			June 30,				June 30,
			2003		2002		2003			2002
REVENUES:
	Software licenses		$	15,529	$	18,286	$	23,232		$	37,819
	Maintenance services			17,258		14,008		33,702			27,024
		Product revenues		32,787		32,294		56,934			64,843
	Consulting services			18,357		23,172		33,958			47,743
	Reimbursed expenses			1,821		2,118		3,328			4,148
		Service revenues		20,178		25,290		37,286			51,891
		Total revenues		52,965		57,584		94,220			116,734
COST OF REVENUES:
	Cost of software licenses			182		713		423			1,124
	Amortization of acquired software technology			1,101		1,072		2,170			2,109
	Cost of maintenance services			4,372		3,450		8,288			6,848
		Cost of product revenues		5,655		5,235		10,881			10,081
	Cost of consulting services			14,119		14,769		28,179			32,599
	Reimbursed expenses			1,821		2,118		3,328			4,148
		Cost of service revenues		15,940		16,887		31,507			36,747
		Total cost of revenues		21,595		22,122		42,388			46,828
GROSS PROFIT				31,370		35,462		51,832			69,906
OPERATING EXPENSES:
	Product development			12,608		10,404		22,788			20,805
	Sales and marketing			10,217		11,265		17,784			20,655
	General and administrative			6,267		7,258		11,576			14,735
	Amortization of intangibles			732		712		1,444			1,426
	Relocation costs to consolidate development and client support activities			578		—		1,260			—
	Purchased in-process research and development			—		800		—			800
	Restructuring, asset disposition and other charges			—		1,295		—			1,295
		Total operating expenses		30,402		31,734		54,852			59,716
OPERATING INCOME (LOSS)				968		3,728		(3,020	)		10,190
	Gain on sale of office facility			639		—		639			—
	Other income, net			379		421		924			1,002
		Total other income		1,018		421		1,563			1,002
INCOME (LOSS) BEFORE INCOME TAXES				1,986		4,149		(1,457	)		11,192
	Income tax provision (benefit)			695		1,472		(510	)		3,970
NET INCOME (LOSS)			$	1,291	$	2,677	$	(947	)	$	7,222
BASIC EARNINGS (LOSS) PER SHARE			$	.05	$	.10	$	(.03	)	$	.26
DILUTED EARNINGS (LOSS) PER SHARE			$	.05	$	.09	$	(.03	)	$	.25
SHARES USED TO COMPUTE:
	Basic earnings (loss) per share			28,506		28,071		28,479			27,729
	Diluted earnings(loss) per share			28,659		29,437		28,479			29,180

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

		Three Months						Six Months
		Ended June 30,						Ended June 30,
		2003			2002			2003			2002
NON-GAAP OPERATING INCOME (LOSS)
Operating income (loss) (GAAP BASIS)		$	968		$	3,728		$	(3,020	)	$	10,190
Adjustments for non-GAAP measures of performance:
	Add back amortization of acquired software technology		1,101			1,072			2,170			2,109
	Add back amortization of intangibles		732			712			1,444			1,426
	Add back relocation costs to consolidate development and client support activities		578			—			1,260			—
	Add back in-process research and development costs		—			800			—			800
	Add back restructuring, asset disposition and other charges		—			1,295			—			1,295
Adjusted non-GAAP operating income (loss)		$	3,379		$	7,607		$	1,854		$	15,820
NON-GAAP OPERATING INCOME (LOSS), as a percentage of revenue
Operating income (loss) (GAAP BASIS)			2	%		6	%		(3	%)		9	%
Adjustments for non-GAAP measures of performance:
	Amortization of acquired software technology		2	%		2	%		2	%		2	%
	Amortization of intangibles		1	%		1	%		2	%		1	%
	Relocation costs to consolidate development and client support activities		1	%		—			1	%		—
	In-process research and development costs		—			1	%		—			1	%
	Restructuring, asset disposition and other charges		—			2	%		—			1	%
Adjusted non-GAAP operating income (loss)			6	%		13	%		2	%		14	%
NON-GAAP EARNINGS (LOSS) PER SHARE
Diluted earnings (loss) per share (GAAP BASIS)		$	.05		$	.09		$	(.03	)	$	.25
Adjustments for non-GAAP measures of performance, net of tax:
	Add back amortization of acquired software technology	$	.02		$	.02		$	.05		$	.05
	Add back amortization of intangibles	$	.02		$	.02		$	.03		$	.03
	Add back relocation costs to consolidate development and client support activities	$	.01			—		$	.03			—
	Add back in-process research and development costs		—		$	.02			—		$	.02
	Add back restructuring, asset disposition and other charges		—		$	.03			—		$	.03
	Add back gain on sale of office facility	$	(.01	)		—		$	(.01	)		—
Adjusted non-GAAP earnings per share		$	.09		$	.18		$	.06		$	.37
CASH FLOW INFORMATION
	Net cash provided by operating activities	$	12,932		$	12,703		$	17,995		$	17,430
	Net cash provided by (used in) investing activities		2,733			(15,842	)		(6,273	)		(25,194	)
	Net cash provided by financing activities		128			2,384			1,618			14,064