For the quarter, total revenues are expected to be in the range of $225 million to $235 million, which is flat compared to $232 million posted in the same period a year ago, the Denver-based firm said in a statement released yesterday. It also expects to report an operating loss between $20 million and $25 million primarily due to lower-than-anticipated margins on software license sales and investments made for sales and marketing efforts.
In the past year, J.D. Edwards has struggled to reinvent itself for the Internet and has faced sagging financial results. Last month, the company announced the resignation of chief executive Doug Massingill, who was it touted to be the leader who would successfully reposition J.D. Edwards.
Like other makers of enterprise resource planning (ERP) software such as Oracle, SAP, PeopleSoft and Baan, J.D. Edwards has been busy making the transition to focus on the Net, offering more Web-friendly front office applications to its customers as the demand for back office software continue to slow. Historically, ERP companies have made revenues selling flagship back office software, applications that automate a company's financials, human resources and manufacturing needs.
In an effort to grab new revenues, J.D. Edwards and its rivals have tapped other markets. The company, for example, looks to expand into customer relationship management software and business e-commerce software. More nimble software players, including Siebel Systems, Commerce One and Ariba, have done well in the sector, gaining favor on the Street.
J.D. Edwards, which is expected to report second-quarter results on May 24, said that the company remains financially "very healthy" with approximately $400 million in cash and investments.