JDA Software Advances, Is the Company Up for Sale? (JDAS)

JDA Software Group (NASDAQ: JDAS) is best known in the worldwide software market for supplying customized applications and solutions to high-profile customers including the government, the hospitality industry, defense contractors and the media world.

Currently, the organization is possibly pursuing a sale opportunity and has hired the world famous financial conglomerate of JP Morgan Chase for spearheading the process. Since the company expressed its interest in a sale opportunity, the software group received proposals from several interested buyers, some of which are private equity firms. Though negotiations have reached an advanced stage, neither JP Morgan nor JDA representatives were available for any comment on this matter.

Earlier this Year: The Company’s 2011 Annual Report Delayed

Earlier this year, the company made a public disclosure to delay its annual report for the year ending on December 31, 2011, citing some irregularities observed in the company’s financial statements, which were under scrutiny from SEC’s Enforcement and Corporation Finance Division. Around the same time, New York-based Praesidium Investment Management Company declared that it acquired a stake in JDA Software and expected to be in discussion with the members of the company’s board of directors, shareholders and other stakeholders related to business operations. Later in August 2012, JDA Software restated its delayed financial statements. Praesidium Investment, owning the largest volume of shares of JDA software, currently has an equity stake of 8.9%.

Market Movement

With a market capitalization of $1.5 billion, JDA has consistently increased its revenues from $573.9 million to $667.8 million. The more notable point is that the company has been able to reduce the percentage of sales devoted to cost of goods sold from 39.7% to 36.1%. This was the key driver that increased the bottom-line growth from $2.1 million to $82.7 million. JDA closed the trading session on November 1 at $44.76.

Another company, K-Swiss (NASDAQ: KSWS), the famous California-based footwear company that designs, develops and markets a wide variety of products, reported a net loss of $1.93 million, or $0.05 per share, for the third quarter versus a net loss of $15.42 million, or $0.43 per share, for the previous year same quarter. The company also reported a sharp revenue decrease to $67.55 million from $80.46 million last year.

A High Flyer

A third company, Gentiva Health Services (NASDAQ: GTIV), the US-based home health and hospice services giant, reported third-quarter 2012 results today. The company reported that its Q3 adjusted income from continuing operations was $0.32 per share, surpassing the $0.28 per share consensus estimate. The company has also projected its 2012 full-year estimate for adjusted income from continuing operations within a range of $1.20 to $1.30 per share. Gentiva Health Service’s shares advanced steadily on November 1 and finished the day at $11.36. This stock has crossed a 50-day moving average and risen to a one-month high.

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Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing. http://www.facebook.com/ben.rouss