Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of JDA Software (Nasdaq: JDAS) are getting crushed today, down by 19% at the low, after the company announced fourth-quarter earnings.

So what: Fourth-quarter sales inched up 3% to $174.2 million, with earnings per share rising 7% to $0.65. For the full year 2011, revenue added up to $671.8 million, resulting in a profit of $2.20 per share.

Now what: The most important aspect of the release snuck in at the very end of the press release, where JDA drops the bombshell that the SEC is now requesting information related to revenue recognition and other accounting policies for certain past fiscal years. The company says it is actively cooperating with the SEC and is committed to addressing any questions that the regulator may have. Any inkling of SEC scrutiny always brings out the bears, so that tidbit is driving investors to run for the hills.

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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.