J.D. Edwards shifted deeper into the "lagging ERP vendor" category yesterday, as falling licensing revenue led to a drop in overall revenue and net losses in the company's third quarter, ended July 31.
For the period, J.D. Edwards reported revenue of $232 million, down from last year's third-quarter revenue of $240 million. While licensing revenue fell quarter over quarter from $98 million last year to $75 million this year, the company was saved from total disaster by an 11% increase in services revenue to $157 million, compared with $141 million in third-quarter 1998.
Net losses for the quarter weren't as great as analysts' anticipated 9 cents per share. Excluding charges, J.D. Edwards reported a net loss of $7.2 million, or 7 cents per share, vs. a net income of $18.1 million, or 16 cents per share, last year.
Before releasing the report, J.D. Edwards closed up 1-5/16, or 7.9%, to 18.