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EXHIBIT 99.1
- - INVESTOR RELATIONS CONTACT:
- - JDA SOFTWARE GROUP, INC. Lawrence Delaney, Jr The Berlin Group
- - NEWS RELEASE PH: (310) 577-5282; Email: larry@berlingroup.com
- -
- - JDA PUBLIC RELATIONS CONTACT:
- - Maureen N. Tuskai, Director, Corporate Communications
- - Phone: (480) 308-3233; Email: maureen.tuskai@jda.com
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JDA RESPONDS TO RETAILERS' MULTI-BILLION CO-OP AD COLLECTION
CHALLENGES WITH THE PURCHASE OF ZAPOTEC
JDA TO DELIVER ADDED VALUE TO RETAILER/MANUFACTURER COLLABORATION ON TRADE
ADVERTISING AND PROMOTIONS
SCOTTSDALE, ARIZ. - FEBRUARY 5, 2001 - JDA(R) SOFTWARE GROUP, INC. (Nasdaq:
JDAS) announced today that it has completed the purchase of all the software
products of ZAPOTEC SOFTWARE, INC., a niche leader in the trade allowance
management segment, for an undisclosed sum. The purchase furthers JDA's position
as the premier provider of ROI-driven solutions for the retail and CPG industry
by adding Zapotec's applications that manage and streamline the laborious set
up, calculation and collection of co-operative advertising and promotion
expenditures between retailers and their manufacturing partners. The transaction
was accounted for as a purchase transaction and is not material to the Company's
financial position.
"According to NAPAA, the Promotional Allowance Association, retailers
are missing opportunities of up to $20 billion of available
manufacturer-sponsored promotional and advertising funds," commented JDA CEO JIM
ARMSTRONG. "Without the tools to track and manage manufacturer trade allowances,
many retailers are simply not aware of how much co-op advertising funds and
vendor rebates that they are leaving on the table. With our expansive client
base and successful back-selling track record, we see a tremendous opportunity
to license the Zapotec products to our existing and prospective clients, who
will welcome the time-savings benefits that these products can deliver."
"Retailers and manufacturers have a common goal in maximizing gross
margin while improving inventory productivity," commented KEVIN STADLER, SENIOR
VICE PRESIDENT, COLLABORATIVE BUSINESS SOLUTIONS. "By integrating the Zapotech
applications with JDA's Portfolio solutions we enhance the ability of all supply
chain partners to more effectively collaborate on promotional effectiveness,
ensure higher customer satisfaction and better ROI.
" As a result of the purchase, JDA will add Zapotec's 75 clients to its
list, including current JDA client's London Drugs and GART Sports.
JDA GAINS ROI-DRIVEN PRODUCTS
Zapotec set the standard for trade allowance management systems with
the 1997 launch of ProMax, an integrated software solution that enables
retailers, suppliers and distributors to manage their trade allowance programs
by automating the contract fulfillment, claim generation and accounts receivable
processes.
For Immediate Release Continued
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In addition to ProMax, JDA will also gain Zapotec's Ad Plan
application, designed to transform the management of advertising and promotion
programs. Currently in development, Ad Plan will integrate all facets of
advertising and promotional planning, such as budgeting, secondary research,
media buying, merchandise content and trade allowance tracking, within a
community of resellers, suppliers, advertising agencies and media companies.
By combining the Zapotec applications with its existing JDA
Portfolio(TM) functions such as competitive and expert pricing, auto progressive
markdowns, and price modeling and simulation, JDA continues its leadership in
delivering superior margin-management applications for both retailers and
manufacturers. JDA believes that the integration of ProMax with its Merchandise
Management System(TM), Open DataBase Merchandise System(TM) and other JDA
Portfolio applications will be finalized in the first half of 2001. Since
Zapotec applications were developed using complementary technologies to several
of JDA's existing products, the Company expects the integration to be completed
with ease.
ZAPOTEC CO-FOUNDER JOINS JDA
As part of the purchase, JDA has hired Zapotec co-founder Jennifer
French. An industry veteran with over 16 years of product technology,
development and delivery experience, French will join JDA's new product
development organization.
"We are very pleased to join the market leader and believe our unique
applications will serve as another competitive advantage for JDA," commented
French. "With JDA's history of significant research and development
expenditures, we will be able to accelerate our enhancement and development of
Zapotec applications to keep pace with technology advances and market demands. I
am confident that this purchase will greatly benefit Zapotec's current
associates, business partners, and most importantly, our valued customers."
Zapotec's business will now operate as JDA Software, Inc. In addition
to French, JDA has hired former Zapotec sales, consulting, development and
support staff, all of whom will relocate from Zapotec's Golden, Colorado office
to new facilities, enabling JDA to run this office more efficiently.
ABOUT JDA SOFTWARE GROUP
With more than 1,000 retail and 2,500 manufacturing clients, JDA
Software Group, Inc. (NASDAQ:JDAS) is the global leader in providing integrated
software and professional services that address real-world issues to help
multi-channel companies manage their mission critical operations. By
capitalizing on its market position and financial strength, JDA commits
significant resources in furthering its next generation of retail intelligent
solutions that exploit the power of the Internet to meet emerging business
needs. Founded in 1985, JDA is headquartered in Scottsdale, Arizona and employs
approximately 1,100 associates
[JDA LETTERHEAD]
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operating from 27 offices in major cities throughout North America, South
America, Europe, Asia and Australia. For more information, visit JDA at
http://www.jda.com.
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 statements regarding: (i) our
plans to back-sell Zapotec's products into our existing customer base; (ii) our
plans to integrate Zapotec's products to our products, particularly MMS and
ODBMS in the first half of 2001, to offer a product that will increase our
client's profits; and (iii) our plans to complete the development of Ad Plan.
Future events may involve risks and uncertainties, among which are uncertainties
related to: (a) the demand of our customer base and the retail market in general
for Pro Max, particularly since the market for trade allowance management
software is not mature, and since Zapotec did not market or license ProMax
significantly in 2000 because it was focussed on the development of
internet-based products; (b) the amount of work necessary to fully integrate
ProMax with MMS and ODBMS, which is difficult to assess prior to actually
beginning such integration work; (c) the amount of work necessary to complete
the development of Ad Plan, which may be significantly more than we currently
anticipate even though the technologies appear to be complementary; and (d)
other risks detailed in the prospectuses relating to the our 1998 public
offering, and which are and will be detailed from time to time in SEC reports
filed by the Company. JDA undertakes no obligation to update information in this
release.
In addition to the specific risks identified in the proceeding paragraph,
acquisitions involve a number of special risks, including diversion of
management's attention to the assimilation of the operations and personnel of
acquired businesses, costs related to the acquisition and the integration of
acquired businesses, products, technologies and employees into our business and
product offerings. Achieving the anticipated benefits of any acquisition will
depend, in part, upon whether the integration of the acquired business,
products, technology, or employees is accomplished in an efficient and effective
manner, and there can be no assurance that this will occur. The difficulties of
such integration may be increased by the necessity of coordinating
geographically disparate organizations, the complexity of the technologies being
integrated, and the necessity of integrating personnel with disparate business
backgrounds and combining different corporate cultures. The inability of
management to successfully integrate any acquisition we may pursue, and any
related diversion of management's attention, could have a material adverse
effect on our business, operating results and financial condition. Moreover,
there can be no assurance that any products acquired will gain acceptance in our
markets, that we will be able to penetrate new markets successfully or that we
will obtain the anticipated or desired benefits of such acquisitions. Any
acquisition we pursue or consummate could result our incurring debt and
contingent liabilities, amortization of goodwill and other intangibles,
purchased research and development expense, other acquisition-related expenses
and the loss of key employees, any of which items could have a material adverse
effect on our business, operating results and financial condition.
JDA is a registered trademarks with the United States Patent and Trademark
Office. JDA Portfolio, Merchandise Management System, Open Database
Merchandising System, and ProMax are trademarks of JDA Software Group, Inc.. All
other company, product or services names referenced in this release may be
registered trademarks or trademarks of their respective owners.
[JDA LETTERHEAD]