JDA Software (JDAS) 8-K JDA Announces Second Quarter 2006 Results

Exhibit 99.1

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

JDA Announces Second Quarter 2006 Results

Scottsdale, Ariz. — July 24, 2006 — JDA^® Software Group, Inc.today announced financial results for the second quarter ended June 30, 2006. JDA reported total revenues of $51.8 million and software revenues of $10.4 million for second quarter 2006, compared to total revenues of $54.9 million and software revenues of $15.3 million for second quarter 2005.

     JDA reported GAAP net income for second quarter 2006 of $0.04 per share, as compared to a GAAP net income of $0.12 per share in second quarter 2005. The Company reported adjusted non-GAAP earnings for second quarter 2006 of $0.09 per share, which excludes amortization of acquired software technology and intangibles, and a restructuring charge, as compared to adjusted non-GAAP earnings per share of $0.17 for second quarter 2005, which excluded amortization of acquired software technology and intangibles, a restructuring charge and adjustments to acquisition-related reserves, and discrete tax item benefits.

     “As a consequence of our software performance in the second quarter, we have reduced our annual guidance. We now expect total revenues for 2006 to range from $290 million to $299 million, software revenues to range from $61 million to $70 million and adjusted non-GAAP earnings per share, excluding amortization of intangibles and restructuring charges, to range from $0.72 to $0.88 per share,” statedJDA CEO Hamish Brewer.

     “We believe our acquisition of Manugistics will have an immediate positive impact on earnings in the second half of 2006. We also look forward to more predictable earnings as our financial model has changed with the acquisition and we now expect over 45% of our total revenues to come from a stable maintenance base. This increased financial strength should enable us to drive accelerated innovation to our 5,500 customers and create a clear and sustained competitive differentiation for JDA,” added Brewer.

SECOND QUARTER 2006 HIGHLIGHTS

• Manugistics Acquisition:The Company announced its planned merger with Manugistics Group, Inc. during second quarter 2006 and subsequently completed the acquisition on July 5, 2006. With this acquisition, JDA is now uniquely positioned to offer the first vertically-focused optimization solution to the Global Supply and Demand Chain market that addresses mission critical requirements from raw materials flowing into production to end-consumer products at the shelf.

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• JDA FOCUS 2006:JDA hosted its most successful FOCUS global conference on May 7-10^th in Las Vegas. Over 1,400 registered representatives endorsed JDA’s growth initiatives and product roadmap. JDA announced an update on the evolution of the next generation of JDA Portfolio^® solutions and the planned release of Strategic Supply and Demand Management on the PortfolioEnabled^®framework.

• Regional Sales Activity:In Europe, Middle East and Africa, JDA closed $3.2 million in software license deals in second quarter 2006, compared to $1.7 million in first quarter 2006 and $3.4 million in second quarter 2005. Asia Pacific closed $2.1 million in software license deals in second quarter 2006, compared to $131,000 in first quarter 2006 and $2.3 in second quarter 2005. The Americas closed $5.1 million in software license deals in second quarter 2006, compared to $5.3 million in first quarter 2006 and $9.5 million in second quarter 2005.

• Software Deals:JDA signed 74 new software deals during the second quarter, including five deals for two or more JDA Portfolio software applications and two deals greater than $1 million. Essar Information Technology Limited, a multi-billion Indian conglomerate signed a software license for applications from eight JDA product families including Enterprise Planning by Arthur®, a next generation application that operates on the PortfolioEnabled® framework. JDA also signed additional licenses in second quarter 2006 with existing customers including American Eagle Outfitters, Inc., Carrefour Belgium, Farmacias Ahumada, S.A. and Northern Tool & Equipment Co.

• Strong Cash Generation:JDA ended second quarter 2006 with $130.8 million in cash and marketable securities as compared to $111.5 million at December 31, 2005. JDA generated $13.3 million in cash flow from operations during second quarter 2006 as compared to $1.7 million in second quarter 2005. DSOs were 64 days at the end of second quarter 2006, compared to 81 days at the end of first quarter 2005 and 66 days at the end of second quarter 2005.

SIX-MONTH 2006 RESULTS

     For the six months ended June 30, 2006, total revenues were $99.6 million compared with $105.1 million for the same period in 2005. Software license revenues decreased 31% to $17.5 million for the first half of 2006, as compared to $25.5 million in the first half of 2005. JDA reported GAAP net income of $1.6 million or $0.05 per share in the first half of 2006, as compared to GAAP net income of $4.3 million or $0.15 per share in the first half of 2005.

     Adjusted non-GAAP earnings for the first half of 2006 were $0.16 per share, as compared to $0.25 per share in the first half of 2005. The non-GAAP earnings results excludes amortization of acquired software technology and intangibles, restructuring charges and adjustments to acquisition-related reserves and discrete tax item benefits, all of which are itemized in the attached schedule of non-GAAP measures of performance.

     Cash flow from operations was $18.4 million for the first half of 2006 as compared to $7.5 million for the first half of 2005.

Conference Call and Webcast Information for Today’s Announcements

     JDA will host a conference call at 4:45 pm Eastern today to discuss its earnings results. 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 Software Group Second Quarter 2006 Earnings Conference Call.” A replay of the conference call will begin today at 6:45 pm (Eastern) and will end on August 24, 2006 at Midnight (Eastern). A replay will be available by dialing 1-877-519-4471 (United States) or 1-973-341-3080 (International) using pin number 7571207.

     To participate in the live Web cast of the call, visit the following web page at the time of the conference call http://viavid.net/dce.aspx?sid=000032E9. A replay of the Web cast will be available approximately 10 minutes after the conclusion of the event.

ABOUT JDA SOFTWARE

     With its acquisition of Manugistics on July 5, 2006, JDA^® Software Group, Inc. (Nasdaq:JDAS) is the global leader in helping more than 5,500 retail, manufacturing and wholesale-distribution customers in 60 countries realize real demand chain results. By capitalizing on its industry position and financial strength, JDA commits significant resources to advancing the JDA Portfolio^® suite of supply and demand chain solutions. JDA Portfolio software enables high-performance business process optimization and execution from the manufacturer’s plant, through distribution to an end customer or a retailer’s shelf. With offices in major cities around the world, JDA employs the industry’s most experienced supply and demand chain experts to develop, deliver and support its solutions. For more information, visitwww.jda.com, email info@jda.com or call 1-800-479-7382.

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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 JDA has reduced its annual guidance and expects total revenues for 2006 to range from $290 million to $299 million, software revenues to range from $61 million to $70 million and adjusted non-GAAP earnings per share to range from $0.72 to $0.88 per share, that the acquisition of Manugistics will have an immediate positive impact on earnings in the second half of 2006, that JDA’s earnings will be more predictable as a result of a larger maintenance base, that the larger maintenance base provides increased financial strength that should enable JDA to drive accelerated innovation to its customers and create a clear and sustained competitive differentiation, and the attendance and feedback of our FOCUS user conference and any implication that it will lead to additional sales. Future events may involve risks and uncertainties, including, but not

limited to, uncertainties inherent in predicting closure of software transactions and future earnings results based upon sales pipelines, competitive win rates and interest expressed at events such as a users conference, particularly in volatile markets and industries such as our own, the risk that even with the Manugistics acquisition our quarterly earnings will continue to be volatile, the risk that we may have difficulty integrating Manugistics and 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” 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.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)

	June 30,			December 31,
	2006			2005
ASSETS	(Unaudited)
Current Assets:
Cash and cash equivalents	$	125,859		$	71,035
Marketable securities		4,950			40,472
Total cash and marketable securities		130,809			111,507
Accounts receivable, net		36,896			42,415
Deferred tax asset		4,174			4,361
Prepaid expenses and other current assets		11,774			8,142
Promissory note receivable		—			1,213
Total current assets		183,653			167,638
Property and Equipment, net		41,119			42,825
Goodwill		60,531			60,531
Other Intangibles, net:
Customer lists		22,991			24,775
Acquired software technology		13,336			15,739
Trademarks		2,391			2,391
		38,718			42,905
Deferred Tax Asset		17,039			16,673
Total assets	$	341,060		$	330,572
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	1,522		$	1,768
Accrued expenses and other liabilities		19,084			18,677
Income tax payable		1,332			1,386
Deferred revenue		32,956			26,775
Total current liabilities		54,894			48,606
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 30,373,567 and 30,222,983 shares, respectively		304			302
Additional paid-in capital		259,252			257,816
Deferred compensation		(636	)		(725	)
Retained earnings		40,534			38,972
Accumulated other comprehensive loss		62			(1,188	)
		299,516			295,177
Less treasury stock, at cost, 1,172,890 and 1,162,202 shares, respectively		(13,350	)		(13,211	)
Total stockholders’ equity		286,166			281,966
Total liabilities and stockholders’ equity	$	341,060		$	330,572

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,
	2006		2005		2006		2005
REVENUES:
Software licenses	$	10,353	$	15,307	$	17,496	$	25,524
Maintenance services		21,673		21,496		43,326		43,202
Product revenues		32,026		36,803		60,822		68,726
Consulting services		17,865		16,733		35,273		33,647
Reimbursed expenses		1,871		1,361		3,520		2,775
Service revenues		19,736		18,094		38,793		36,422
Total revenues		51,762		54,897		99,615		105,148
COST OF REVENUES:
Cost of software licenses		370		491		762		716
Amortization of acquired software technology		1,150		1,263		2,403		2,562
Cost of maintenance services		6,965		5,709		12,928		11,322
Cost of product revenues		8,485		7,463		16,093		14,600
Cost of consulting services		12,715		13,142		24,769		26,093
Reimbursed expenses		1,871		1,361		3,520		2,775
Cost of service revenues		14,586		14,503		28,289		28,868
Total cost of revenues		23,071		21,966		44,382		43,468
GROSS PROFIT		28,691		32,931		55,233		61,680
OPERATING EXPENSES:
Product development		11,245		10,744		22,003		22,420
Sales and marketing		9,292		9,671		17,508		19,073
General and administrative		6,347		6,936		13,312		12,465
Amortization of intangibles		891		849		1,784		1,698
Restructuring charge and adjustments to acquisition-related reserves		521		880		521		2,439
Total operating expenses		28,296		29,080		55,128		58,095
OPERATING INCOME		395		3,851		105		3,585
Other income, net		1,294		627		2,224		1,143
INCOME BEFORE INCOME TAXES		1,689		4,478		2,329		4,728
Income tax provision		614		895		767		442
NET INCOME	$	1,075	$	3,583	$	1,562	$	4,286
BASIC EARNINGS PER SHARE	$	.04	$	.12	$	.05	$	.15
DILUTED EARNINGS PER SHARE	$	.04	$	.12	$	.05	$	.15
SHARES USED TO COMPUTE:
Basic earnings per share		29,172		28,757		29,139		28,953
Diluted earnings per share		29,648		29,023		29,661		29,273

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,
	2006			2005			2006			2005
NON-GAAP OPERATING INCOME AND ADJUSTED EBITDA
Operating income (GAAP BASIS)	$	395		$	3,851		$	105		$	3,585
Adjustments for non-GAAP measures of performance:
Add back amortization of acquired software technology		1,150			1,263			2,403			2,562
Add back amortization of intangibles		891			849			1,784			1,698
Add back restructuring charge and adjustments to acquisition-related reserves		521			880			521			2,439
Adjusted non-GAAP operating income	$	2,957		$	6,843		$	4,813		$	10,284
Add back depreciation		1,865			2,436			3,803			4,800
Add back stock-based compensation		228			31			445			31
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization	$	5,050		$	9,310		$	9,061		$	15,115
NON-GAAP OPERATING INCOME AND AJDUSTED EBITDA, as a percentage of revenue
Operating income (GAAP BASIS)		1	%		7	%		—	%		3	%
Adjustments for non-GAAP measures of performance:
Amortization of acquired software technology		2	%		2	%		2	%		3	%
Amortization of intangibles		2	%		1	%		2	%		2	%
Restructuring charge and adjustments to acquisition-related reserves		1	%		2	%		1	%		2	%
Adjusted non-GAAP operating income		6	%		12	%		5	%		10	%
Depreciation		4	%		5	%		4	%		4	%
Stock-based compensation		—	%		—	%		—	%		—	%
Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization		10	%		17	%		9	%		14	%
NON-GAAP EARNINGS PER SHARE
Diluted earnings per share (GAAP BASIS)	$	.04		$	.12		$	.05		$	.15
Adjustments for non-GAAP measures of performance, net of tax:
Amortization of acquired software technology		.02			.03			.06			.06
Amortization of intangibles		.02			.02			.04			.04
Restructuring charges and adjustments to acquisition-related reserves		.01			.02			.01			.05
Discrete tax item benefits		—			(.02	)		—			(.05	)
Adjusted non-GAAP diluted earnings per share	$	.09		$	.17		$	.16		$	.25

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2006			2005			2006			2005
CASH FLOW INFORMATION
Net cash provided by operating activities	$	13,319		$	1,708		$	18,386		$	7,549
Net cash used in investing activities:
Net (purchases) sales and maturities of marketable securities	$	42,010		$	103		$	35,484		$	(324	)
Payment received on promissory note receivable		—			148			1,213			1,200
Purchase of other property and equipment		(1,230	)		(979	)		(1,972	)		(2,558	)
Other, net		47			(166	)		(59	)		(270	)
	$	40,827		$	(894	)	$	34,666		$	(1,952	)
Net cash provided by financing activities:
Purchase of treasury stock	$	(92	)	$	(6,508	)	$	(139	)	$	(8,659	)
Other, net		104			205			1,004			843
	$	12		$	(6,303	)	$	865		$	(7,816	)

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