Shares of JDA Software (JDAS) are down $2.92, or almost 10%, at $26.55 despite the company reporting Q4 results ahead of expectations, as the company disclosed it received a notice from the Securities & Exchange Commission that the SEC would like some information about the company’s accounting practices with respect to revenue recognition.

Revenue in the three months ended in December rose 3%, year over year, to $174.2 million, yielding EPS of 65 cents. Analysts had been modeling $1.73 billion and 63 cents.

The company said a 31% decline in Americas region software and subscription revenue prompted a 10% drop in overall subscription and software revenue.

The company remarked,

JDA has received notice from the U.S. Securities and Exchange Commission requesting information related to revenue recognition and other accounting and financial reporting matters for certain past fiscal years. JDA is actively cooperating with the SEC and is committed to addressing any questions the SEC may have.

JDA management is hosting a conference call with analysts at 4:45 pm, Eastern, and you can catch the webcast of it here.

Update: Briefing.com points out that on the company’s call, JDA management has made note of the fact that the SEC request relates to the timing of the recognition of revenue, to the existence of revenue itself.