The second quarter of J.D. Edwards Inc. (Nasdaq: JDEC) wasn't quite as red as Wall Street expected it to be.
But as previously warned, the enterprise software vendor did lose money. In fiscal second quarter results released after market close Wednesday, J.D. Edwards posted a net loss of $10.4 million, or 10 cents a share. First Call's survey of 14 analysts predicted a loss of 12 cents.
Second quarter sales rose 11 percent year-over-year, to $231.6 million from $209 million. J.D. Edwards earned $12.3 million, or 11 cents a share in the year-ago period.
License fee revenue was $67.2 million -- actually above the range the company previously expected -- in the second quarter, compared to license fee revenue of $76.4 million a year earlier. Services revenue rose 24 percent over the same period, to $164.4 million.
Earlier this month, J.D. Edwards warned it would post an operating loss for the second quarter, as corporate clients worried about Y2K problems reduced spending on back office software. The company has recently said it would try to boost its sales to government customers, and also announced plans to resell front office applications of Siebel Systems.
Shares of J.D. Edwards fell 7/8 to 19 in trading prior to the quarterly report. Of 16 analysts polled by Zack's Investment Research, 10 maintain the equivalent of "hold" ratings on the J.D. Edwards, four rate the stock a "moderate buy", two recommned it as a "strong buy".>