JD Edwards reports $48m operating loss
- 05 June, 2000 12:01
The red-ink news for business applications vendor JD Edwards in its second fiscal quarter wasn't quite as bad as some analysts had feared. But the Denver-based company has the sale of some equity investments to thank for that.
JD Edwards (JDE) last week reported a $US2.3 million ($4.05 million) net loss for its second quarter ended April 30, compared with a $10.4 million loss for the same period a year ago. But the operating loss for this year's second quarter totalled $27.3 million ($48 million), a figure that was reduced in part by a $17.9 million gain from selling off some unspecified equity investments.
JDE, which announced earlier that it was pulling out of the ASP sector and laying off 800 of its 5400 employees (CW, p1, May 29) - was originally expected to report a small profit for the second quarter. But earlier this month, the company warned that a loss was likely instead.
Second-quarter revenue was flat with last year's level, coming in at $231 million. The announcement of the financial results also follows last month's abrupt resignation of CEO Doug Massingill, who was replaced by co-founder and chairman Edward McVaney. McVaney had given up the CEO job to Massingill in late 1998.
But all of the recent troubles shouldn't spell the end of JJDE, said Ed Markowitz, an analyst and editor of the ERP Strategy newsletter.