A recent savvy purchase has helped JDA Software Group (NASDAQ:JDAS), a developer of supply chain software, hold its own against tough competition.

In its ongoing battle with king-sized rivals such as Oracle (NASDAQ:ORCL) and SAP (NYSE:SAP), JDA has gotten a significant boost from its $211 million buyout of Manugistics in April 2006. In yesterday's fiscal second-quarter earnings report, JDA reported a 75% surge in revenue, to $90.8 million. About $40.1 million of that increase came from Manugistics.

JDA added 71 new customers in the quarter, snaring four contracts in excess of $1 million each. Its 5,500 customers include major players such as PetSmart (NASDAQ:PETM), Office Depot (NYSE:ODP), and Borders (NYSE:BGP).

JDA posted $4.8 million in net income, or $0.14 per share, up from $1.1 million, or $0.04 per share, a year ago. It also enjoyed healthy cash flows, generating roughly $18.4 million in Q2. That extra cash has helped the company cut its debt from $141.1 million to $106.1 million so far this year.

On its conference call, management was upbeat about demand for JDA's products. The company changed its full-year guidance on license revenues from $58 million to $64 million to $65 million to $75 million. Executives also predicted that Manugistics will continue to yield both cross-selling opportunities and cost savings. Among its other assets, JDA sports a ramped-up sales force and several major products on their way to market.

Pulling off a major software acquisition is not easy, but so far, JDA's done well. In fact, the success of the Manugistics deal has management considering further buyout deals. It shouldn't be in any hurry to expand, though. As I said in reviewing the company's first-quarter report, JDA should have abundant momentum for the rest of the fiscal year.

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Borders is a Motley Fool Inside Value pick, while PetSmart is a Motley Fool Stock Advisor selection. Try any of our Foolish newsletters free for 30 days.

Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is currently ranked 2,374 out of more than 60,000 total participants in Motley Fool CAPS.