JDA Software Group Inc, the Phoenix, Arizona-based provider of retail sales software and services, said international sales of new software licenses had fallen by 40% from last year’s third quarter as customers deferred major purchases. License revenues fell sharply in JDA’s European, Latin American and Asian divisions, although domestic sales had remained strong in the quarter the company said. No reason was given by the company for the sudden disappearance of international license sales. Third quarter net profits were up 19% at $3.9m while total revenues rose 64% to $38.9m but analysts were expecting more from the company this quarter. Service revenues contributed $26.5m of the overall figure, more than twice the income from new license sales. This is compared to a more even 60-40 split last time, showing how software sales have declined. Additionally, license revenues this quarter should have received a boost from the recently purchased Arthur Retail unit of Comshare Inc that reported revenues of at least $5m per quarter prior to its acquisition. JDA wrote off more than 90% of the acquisition cost of the Arthur Retail unit as in process R&D, an accounting maneuver which last week caused Cabletron Systems Inc to have to restate its past two quarters results at the request of the Securities and Exchange commission.
