J.D. Edwards Jumps on Q2 Outlook

J.D. Edwards (Nasdaq: JDEC) jumped US$1 to $8.22 in morning trading Friday, after the software maker said it expects results for the quarter ending April 30th to be "significantly better" than a year earlier.

The company also said that it laid off 400 employees, or 8 percent of its workforce, in streamlining operations.

Edwards said it expects revenue of $210 million to $215 million for the fiscal second quarter, including about $63 million in license revenue.

Earnings per share from "normalized operations" will be better than the 5-cent-per-share loss predicted by analysts, the Denver, Colorado-based company said.

"I'm pleased with the considerable progress we've made on the revitalization plan over the past 90 days," Edwards chairman, president and chief executive officer Ed McVaney said, adding that action by company managers "has already delivered positive results."

The company said that the job cuts will help it meet its target of saving $75 million over 18 months. Among the other moves being made are consolidation of Edwards' "global operating theaters," restructuring of field sales, service operations and the marketing division, and elimination of layers of management.

Edwards announced a management shakeup in February, appointing a new chief operating officer and chief marketing officer.

In March, the software maker barely topped analyst first-quarter estimates, posting income from "normalized operations" of $191,000, or breakeven per share. Revenue slipped to $217.7 million from $231.7 million a year earlier.

The company plans to report second-quarter results after the close of trading May 23rd.