SEC investigating past JDA's past fiscal years, stock falls

The company is pledging to cooperate fully with the SEC

JDA Software's stock is taking a hit after the supply-chain application vendor said Tuesday that it experienced a loss in the fourth quarter and the U.S. Securities and Exchange Commission is requesting information about past fiscal years.

The company reported a net loss of US$1.4 million in the fourth quarter ended Dec. 31 on revenue of $174.2 million. JDA's fourth quarter was impacted by a $54 million payment to settle a lawsuit filed by a customer, the Dillard's department store chain, over software it bought from i2, which JDA bought in 2010. For the full year, JDA reported $671.8 million in revenue, with net income of $71 million.

Meanwhile, JDA "has received notice from the U.S. Securities and Exchange Commission requesting information related to revenue recognition and other accounting and financial reporting matters for certain past fiscal years," it said in a statement Tuesday.

JDA's stock fell more than 18 percent in early trading Wednesday to about $24 on the news.

The SEC's inquiries include a "a comment letter from the commission's Division of Corporation Finance covering our 2010 10-K filing," CEO Hamish Brewer said during a conference call with analysts Tuesday. "Separately, we received a subpoena from the Division of Enforcement related to an investigation requesting documents for 2008, 2009 and 2010."

"We will of course work very transparently with the SEC to answer their questions and provide the documents that they've requested as quickly as possible," Brewer added.

JDA has pulled together a group that includes its legal counsel, auditor and "Big Four" accounting firms in order to collect the documents sought by the SEC, he added. This work should take several weeks and "at this stage, we do not know what this analysis will produce."

The company has "worked with the same Big Four audit firms for many years and we have not had any disagreements with them on revenue recognition," Brewer said. In addition, "at this point, this matter appears to be focused on the timing of revenue recognition rather than the existence of the revenue."

I2 also had high-profile run-ins with the SEC over revenue recognition issues.

But the SEC's requests for information don't "specify one company acquired versus JDA," said JDA CFO Peter Hathaway during the conference call. "It's pretty much focused on sort of a JDA umbrella, if you will."

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?