JDA Software (JDAS) 8-K JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues and Successful Implementation of Cost Controls

Exhibit 99.1

	JDA Investor Relations Contacts:
Ÿ	Lawrence Delaney, Jr., The Berlin Group
Ÿ	Tel: 714-734-5000;larry@berlingroup.com
Ÿ JDA Software Group, Inc.	Kristen L. Magnuson, Executive Vice President & Chief
Ÿ	Financial Officer, JDA Software Group, Inc.
Ÿ NEWS RELEASE	Tel: 480-308-3000
Ÿ

JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues and
Successful Implementation of Cost Controls

Scottsdale, Ariz. – July 25, 2005 – JDA® Software Group, Inc.today announced financial results for the second quarter ended June 30, 2005. JDA reported total revenues of $54.9 million and software revenues of $15.3 million for second quarter 2005, compared to total revenues of $54.1 million and software revenues of $14.1 million for second quarter 2004, and total revenues of $50.3 million and software revenues of $10.2 million for first quarter 2005.

     JDA reported GAAP net income for the second quarter 2005 of $3.6 million, or $0.12 per share, as compared to GAAP net income of $604,000, or $0.02 per share in second quarter 2004. The Company reported adjusted non-GAAP earnings for second quarter 2005 of $0.17 per share, as compared to adjusted non-GAAP earnings per share of $0.04 for second quarter 2004. The non-GAAP earnings results exclude amortization of acquired software technology and intangibles, restructuring charges and adjustments to acquisition-related reserves, and net tax benefits resulting from revisions of tax estimates in prior years and certain foreign tax positions and contingencies, all of which are itemized in the attached schedule of non-GAAP measures of performance.

     “At the start of the quarter we talked about having a robust pipeline of opportunities. I am pleased to report that we have been able to convert a number of them into new business with a 50% sequential increase in software license sales delivering solid earnings growth during second quarter 2005,” commentedHamish Brewer, JDA Chief Executive Officer. “Of the 78 deals that we closed this past quarter, our wins included four deals over $1 million, 11 multi-product transactions and nine Portfolio Merchandise Operations transactions. With 78% of our software license sales coming from existing customers, our performance clearly proves the winning advantage that our large customer base and market leading product suite can deliver in this highly competitive environment.”

     “Additionally, I am delighted to be able to report that demand generation for our new PortfolioEnabled® products is proceeding very well. We signed our first major, tier one customer for our new portfolio enabled advanced replenishment application, PRO, since its release during the first quarter of 2005 and now have established an impressive list of opportunities. These facts position us very well to achieve more significant growth over the next eighteen months,” added Brewer.

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JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues

SECOND QUARTER 2005 HIGHLIGHTS

• Strong Acceptance of New Products on Microsoft .NET:JDA has enjoyed a strong reception for its first release of next generationJDA Portfolio®products. With another two deals closed this quarter for newPortfolioEnabled™applications, JDA is now in various stages of implementation with six companies and partnering with Microsoft on joint activities. JDA attributes the strong interest of its product strategy to several factors, including the company’s unique ability to deliver high quality, industry-specific software functionality; visionary technologies and comprehensive services proven to transform how retailers and their suppliers operate, compete and grow.

• Regional Sales Activity:JDA’s Americas; Europe, Middle East and Africa (EMEA) and Asia Pacific regions achieved strong sequential increases of 48%, 15% and 198%, respectively, in software license activity during second quarter 2005. The Americas closed $9.5 million in software license deals in Q2’05, compared to $6.5 million in Q1’05 and $9.9 million in Q2’04. EMEA closed $3.4 million in software license deals in Q2’05, compared to $3.0 million in Q1’05 and $2.9 million in Q2’04. Asia Pacific closed $2.3 million in software license deals in Q2’05, compared to $782,000 in Q1’05 and $1.3 million in Q2’04.

• New Chief Operating Officer Added to Senior Management Team:JDA appointedChristopher J. Koziolto the newly created position of Chief Operating Officer. Koziol,a seasoned technology industry veteran, is the former president and COO of MicroAge, Inc., a Fortune 500 technology systems integrator and wholesaler to leading sales and services organizations.

• Supply Chain Leadership Recognized by Industry:For the fifth consecutive year JDA or its customers have been selected as outstanding examples of strategic thinking and supply chain leadership by the Voluntary Inter-industry Commerce Standards (VICS) Association. JDA won the 2005 VICS Award forBest Third Party Providerfor enabling its customers to improve service levels, reduce inventory, increase sales and execute more efficient logistics. As a result of Q2’05 license activity, 275 trading partner pairs rely on JDA solutions to support over $4.5 billion in trade volume, up from more than 230 trading partner pairs in Q2’04.

• Strong Cash Position:JDA ended Q2’05 with $93.9 million in cash and marketable securities as compared to $97.1 million at December 31, 2004. JDA generated $1.7 million in cash flow during Q2’05 as compared to $8.2 million in Q2’04. DSOs were 66 days at the end of Q2’05, compared to 65 days at the end of Q1’05 and 61 days in Q2’04. During Q2’05 JDA also repurchased 590,500 shares of its common stock for $6.5 million.

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JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues

SIX-MONTH 2005 RESULTS

     For the six months ended June 30, 2005, total revenues were $105.1 million compared with $109.3 million for the same period in 2004. Software license revenues decreased 11% to $25.5 million for the first half of 2005, versus $28.7 million in the first half of 2004. JDA reported GAAP net income of $4.3 million or $0.15 per share, as compared to GAAP net income of $167,000 or $0.01 per share in the first half of 2004.

     Adjusted non-GAAP earnings for the first half of 2005 were $0.25 per share, as compared to $.11 per share in the first half of 2004. The non-GAAP earnings results exclude amortization of acquired software technology and intangibles, restructuring charges and adjustments to acquisition-related reserves, and net tax benefits resulting from revisions of tax estimates in prior years and certain foreign tax positions and contingencies, all of which are itemized in the attached schedule of non-GAAP measures of performance.

     Cash flow from operations was $7.5 million for the first half of 2005 as compared to $15.0 million for the first half of 2004.

Earnings Conference Call Information for Today’s Announcement

     JDA will hold its regularly scheduled conference call today, July 25, 2005, 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 2005 Earnings.” A replay of the conference call will begin immediately following the call and will end on August 25, 2005 at 12:00 am EDT. Callers can hear the replay by dialing 1-877-519-4471 (United States) or 1-973-341-3080 (International) using access code 6186863.

     To participate in a live Web cast of the call, visit the following web page at the time of the conference call: http://viavid.net/dce.aspx?sid=00002685. An archived version of the Web cast will be accessible from the same link for one year from the conference date.

About JDA Software

     With more than 4,800 retail, manufacturing and wholesale customers 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 approximately 1,100 associates operating from 26 offices in major cities throughout North America, South America, Europe, Asia and Australia. For more information, visit www.jda.com, emailinfo@jda.com or call 1-800-479-7382.

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JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues

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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. Such forward-looking statements include Mr. Brewer’s statements that we have established an impressive list of opportunities for our Enabled products and expect to achieve more significant growth over the next eighteen months. Future events may involve risks and uncertainties, including, but not limited to: (i) uncertainties inherent in predicting closure of software transactions based upon interest, particularly in the case of products such as our Enabled products that are in early stages of availability and roll-out and have few, if any, production reference sites; (ii) risks related to increased competitive activity by companies such as Oracle and SAP that have greater financial and marketing resources than us; (iii) the risk that general worldwide economic conditions could deteriorate significantly over the period in which we hope to achieve significant growth; and (iv) other risks detailed from time to time in the “Risk Factors” section of our filings with the Securities and Exchange Commission. As a result of these and other risks, actual results may differ materially from those predicted. We undertake no obligation to update information in this release.

“JDA,” “JDA Portfolio,” and “PortfolioEnabled” 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’.

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JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues

JDA SOFTWARE GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

	June 30,			December 31,
	2005			2004
	(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	57,746		$	61,344
Marketable securities		36,137			35,778
Total cash and marketable securities		93,883			97,122
Accounts receivable, net		40,274			39,524
Deferred tax asset		3,693			3,578
Prepaid expenses and other current assets		9,959			8,242
Promissory note receivable		1,536			2,736
Total current assets		149,345			151,202
Property and Equipment, net		45,465			48,324
Goodwill		69,901			69,901
Other Intangibles, net:
Customer lists		26,649			28,347
Acquired software technology		18,186			20,749
Trademarks		2,591			2,591
		47,426			51,687
Deferred Tax Asset		12,101			11,453
Total assets	$	324,238		$	332,567
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	3,144		$	3,104
Accrued expenses and other liabilities		18,624			24,645
Income tax payable		784			215
Deferred revenue		29,978			28,418
Total current liabilities		52,530			56,382
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 29,680,019 and 29,596,697 shares, respectively		297			296
Additional paid-in capital		249,599			248,633
Retained earnings		36,298			32,012
Accumulated other comprehensive loss		(1,275	)		(204	)
		284,919			280,737
Less treasury stock, at cost, 1,162,202 and 414,702 shares, respectively		(13,211	)		(4,552	)
Total stockholders’ equity		271,708			276,185
Total liabilities and stockholders’ equity	$	324,238		$	332,567

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JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues

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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2005		2004			2005		2004
REVENUES:
Software licenses	$	15,307	$	14,085		$	25,524	$	28,664
Maintenance services		21,496		19,819			43,202		39,126
Product revenues		36,803		33,904			68,726		67,790
Consulting services		16,733		18,523			33,647		38,537
Reimbursed expenses		1,361		1,656			2,775		2,935
Service revenues		18,094		20,179			36,422		41,472
Total revenues		54,897		54,083			105,148		109,262
COST OF REVENUES:
Cost of software licenses		491		701			716		1,379
Amortization of acquired software technology		1,263		1,299			2,562		2,560
Cost of maintenance services		5,709		4,865			11,322		9,833
Cost of product revenues		7,463		6,865			14,600		13,772
Cost of consulting services		13,142		13,691			26,093		28,036
Reimbursed expenses		1,361		1,656			2,775		2,935
Cost of service revenues		14,503		15,347			28,868		30,971
Total cost of revenues		21,966		22,212			43,468		44,743
GROSS PROFIT		32,931		31,871			61,680		64,519
OPERATING EXPENSES:
Product development		10,744		13,412			22,420		27,182
Sales and marketing		9,671		11,787			19,073		22,709
General and administrative		6,936		6,270			12,465		12,487
Amortization of intangibles		849		849			1,698		1,690
Restructuring charge and adjustments to acquisition- related reserves		880		—			2,439		2,824
Total operating expenses		29,080		32,318			58,095		66,892
OPERATING INCOME (LOSS)		3,851		(447	)		3,585		(2,373	)
Other income, net		627		222			1,143		970
INCOME (LOSS) BEFORE INCOME TAXES		4,478		(225	)		4,728		(1,403	)
Income tax provision (benefit)		895		(829	)		442		(1,570	)
NET INCOME	$	3,583	$	604		$	4,286	$	167
BASIC EARNINGS PER SHARE	$	.12	$	.02		$	.15	$	.01
DILUTED EARNINGS PER SHARE	$	.12	$	.02		$	.15	$	.01
SHARES USED TO COMPUTE:
Basic earnings per share		28,757		29,053			28,953		29,045
Diluted earnings per share		29,023		29,518			29,273		29,634

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JDA Reports Substantial Earnings Growth on Sequential Increase in License Revenues

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2005			2004			2005			2004
NON-GAAP OPERATING INCOME
Operating income (loss) (GAAP BASIS)	$	3,851		$	(447	)	$	3,585		$	(2,373	)
Adjustments for non-GAAP measures of performance:
Add back amortization of acquired software technology		1,263			1,299			2,562			2,560
Add back amortization of intangibles		849			849			1,698			1,690
Add back restructuring charge and adjustments to acquisition-related reserves		880			—			2,439			2,824
Adjusted non-GAAP operating income	$	6,843		$	1,701		$	10,284		$	4,701
NON-GAAP OPERATING INCOME, as a percentage of revenue
Operating income (loss) (GAAP BASIS)		7	%		(1	%)		3	%		(2	%)
Adjustments for non-GAAP measures of performance:
Amortization of acquired software technology		2	%		2	%		3	%		2	%
Amortization of intangibles		1	%		2	%		2	%		2	%
Restructuring charge and adjustments to acquisition-related reserves		2	%		—			2	%		2	%
Adjusted non-GAAP operating income		12	%		3	%		10	%		4	%
NON-GAAP EARNINGS PER SHARE
Diluted earnings per share (GAAP BASIS)	$	.12		$	.02		$	.15		$	.01
Adjustments for non-GAAP measures of performance, net of tax:
Add back amortization of acquired software technology		.03			.03			.05			.05
Add back amortization of intangibles		.02			.02			.04			.04
Add back restructuring charge and adjustments to acquisition-related reserves		.02			—			.05			.06
Net tax benefits resulting from revisions of tax estimates in prior years and certain foreign tax positions and contingencies		(.02	)		(.03	)		(.04	)		(.05	)
Adjusted non-GAAP diluted earnings per share	$	.17		$	.04		$	.25		$	.11
CASH FLOW INFORMATION
Net cash provided by operating activities	$	1,708		$	8,225		$	7,549		$	15,045
Net cash used in investing activities:
Purchase of corporate office facility	$	—		$	—		$	—		$	(23,767	)
Purchase of Timera Texas, Inc.		—			—			—			(13,574	)
Purchase of other property and equipment		(979	)		(2,037	)		(2,558	)		(5,754	)
Other, net		85			11,244			606			12,218
	$	(894	)	$	9,207		$	(1,952	)	$	(30,877	)
Net cash provided by financing activities:
Purchase of treasury stock	$	(6,508	)	$	—		$	(8,659	)	$	—
Other, net		205			90			843			422
	$	(6,303	)	$	90		$	(7,816	)	$	422

JDA Software Group, Inc.
14400 N. 87th Street
Scottsdale, AZ 85260