what slowdown? Manugistics Posts Record Fourth Quarter And Annual Revenue In Fiscal 2001
Annual Software License Fees Up 131 Percent on Strong Global Demand for Supply Chain Management and Pricing and Revenue Optimization Solutions
ROCKVILLE, Md. — March 26, 2001 — Manugistics Group, Inc. (NASDAQ: MANU), the leading global provider of Enterprise Profit Optimization™ (EPO) solutions – the powerful combination of supply chain management and pricing and revenue optimization solutions – for enterprises and eMarketplaces, today reported record revenue for its fourth quarter and year ended February 28, 2001, highlighting the company’s continued growth and market momentum. Total revenue for the fourth quarter increased 105 percent to $89.3 million from the prior year. Total annual revenue increased 76 percent from the prior year to $268.0 million.
The company reported annual adjusted net income of $8.0 million, or $.14 per basic and $.12 per diluted share. The company reported fourth quarter adjusted net income of $3.7 million, or $.06 per basic and $.05 per diluted share. Adjusted net income and earnings per share, for all periods referred to herein, exclude the following items: amortization of intangibles, purchased research and development charges related to acquisitions, non-cash stock compensation charges or benefits and restructuring benefit – together with the related income tax effects. Fiscal 2001 and fourth quarter results include operations related to the acquisitions of Talus Solutions, Inc., which closed December 21, 2000, and STG Holdings, Inc., which closed January 16, 2001. All basic and diluted earnings per share in this announcement reflect the two-for-one stock split that became effective on December 7, 2000.
"I am pleased to report record revenue for Manugistics’ fiscal year – a year in which we more than doubled our license fees," said Greg Owens, Manugistics chairman and chief executive officer. "Our record fourth quarter results were just as exceptional, with software license fee growth of 123 percent over the same quarter last year. Our differentiated solutions, solid execution at all levels of our business, balanced sales across key industry verticals, and increasing sales strength from our global operations are the key factors driving our market momentum and profitability – allowing us to overcome current market trends."
"We continue to see robust demand for our solutions even in the current economic environment," added Owens. "We believe that focused, strong ROI-based solutions – such as the quick-to-implement supply chain management and pricing and revenue optimization solutions offered by Manugistics – are the critical initiatives most likely to be funded by leading companies in the current market environment."
Fourth Quarter Results:
For its fourth quarter ended February 28, 2001, Manugistics generated record software license fees of $49.0 million, an increase of 123 percent from $22.0 million in the quarter ended February 29, 2000. In addition, fourth quarter software license fees increased 37 percent sequentially from the third quarter ended November 30, 2000. Total revenue increased 105 percent to a record $89.3 million from $43.7 million in the same quarter of the prior year.
For the fourth quarter ended February 28, 2001, adjusted net income was $3.7 million, or $.06 per basic and $.05 per diluted share compared to an adjusted net loss of $1.2 million, or $.02 per basic and diluted share, in the same quarter of the prior year. The company reported an actual net loss of $16.7 million, or $.26 per basic and diluted share, for the fourth quarter ended February 28, 2001, compared to an actual net loss of $1.1 million, or $.02 per basic and diluted share, in the same quarter of the prior year.
"In our fourth quarter, Manugistics signed deals with prestigious companies located around the world, across a balanced portfolio of industry verticals, including: Barilla, DaimlerChrysler Corporation, Fairchild Semiconductor, Haworth, Ixedius AG (a SAirGroup venture), Johnson & Johnson Consumer Companies, Rohm and Haas, Subaru of America and Vodafone," said Rich Bergmann, Manugistics president. "We continue to have significant wins against the competition and believe that Manugistics solutions will continue to be sought after by companies looking to enhance organizational efficiencies and maximize operating margins."
"In addition, we continue to deliver value across our deep base of transportation, travel and hospitality clients," added Bergmann. "We have expanded our relationships in the quarter with leaders such as Delta Air Lines, Japan Airlines, Japan Air Systems, La Quinta Inns, Princess Cruises, SAirGroup and UPS. And we continue to develop and deliver innovative solutions to help companies such as these drive cost efficiencies and increase revenue."
Fiscal Year Results:
For the year ended February 28, 2001, Manugistics generated record software license fees of $139.3 million; an increase of 131 percent from $60.4 million for the year ended February 29, 2000. For the year ended February 28, 2001, Manugistics generated record total annual revenue of $268.0 million; an increase of 76 percent from $152.4 million from the prior year. Adjusted net income totaled $8.0 million, or $.14 per basic and $.12 per diluted share, compared to an adjusted net loss of $8.4 million, or $.15 per basic and diluted share, for the year ended February 29, 2000. The company reported an actual net loss for the year ended February 28, 2001 of $28.1 million, or $.48 per basic and diluted share, compared to an actual net loss of $8.9 million, or $.16 per basic and diluted share, for the year ended February 29, 2000.
Fourth Quarter Highlights:
Global Client Wins: The company’s supply chain management and pricing and revenue optimization client-base passed 1,100 during the quarter – strong evidence that Manugistics is successfully driving demand globally for solutions designed to maximize revenue, reduce costs and improve customer service.
The company signed significant software license agreements across key vertical industries with corporations such as ChemLogix, LLC, eCPG3 LLC, Fairchild Semiconductor, Harley-Davidson, Inc., Haworth Inc., IKON Office Solutions, Inc., Johnson & Johnson Consumer Companies, Rohm and Haas Company, Sanmina Corporation, Subaru of America, Inc., and Unilever Home & Personal Care North America.
Sales were balanced throughout the Americas, Europe and Asia, with significant new global wins including Barilla Alimentare, S.p.A., Campanhia Siderúrgica de Tubarao, CMB LogiFlow, Guiness United Distillers and Vintners Ltd., Ixedius AG, SATO Corporation, Skis Rossignol S.A., Tronicus Inc. and Vodafone Limited.
Acquisitions: Manugistics further differentiated its robust product and solutions suite – completing separate acquisitions of technology innovators Talus Solutions, Inc. and STG Holdings, Inc.
With these acquisitions, Manugistics assumed the leadership position in pricing and revenue optimization, and enhanced its core supply chain solutions – adding new advanced strategic, tactical and operational planning, scheduling and simulation capabilities for single factory and multi-factory enterprises.
New Solutions: At its February 13, 2001 Strategy Summit in San Francisco, Manugistics showcased to the press and analyst communities its new EPO solutions – including Profitable Demand Management, Profitable-to-Promise, Promotional Demand Management, and Life Cycle Profitability Management. Manugistics expects to begin rolling out these new solutions this summer.
Rapid Implementation: Manugistics’ strong ROI solutions can be implemented quickly – typically within 6-9 months. Manugistics has been investing significant resources towards accelerating implementation timetables in order to more quickly deliver value to its clients. Cisco Systems’ Supply Chain eHub pilot – the Manugistics-powered extended global collaborative supply chain network linking Cisco with its contract manufacturers, distributors and suppliers – went live after just three months.
Alliance Initiatives: Manugistics, Microsoft, and KPMG Consulting announced a joint initiative to provide comprehensive supply chain solutions designed to enable Global 2000 customers to rapidly integrate trading partners, enhance supply chain visibility, and reduce operating expenses.
Manugistics also launched its Commerce Management solutions, the next phase of an aggressive technology strategy. The solutions combine Manugistics collaborative, marketplace and optimization solutions with our best-of-breed partner offerings – from companies such as Agile Software, Mētiom, NetVendor, webMethods, Xelus and others – helping to ensure that the transactional requirements of both private and public marketplaces can be seamlessly integrated across the supply-demand network.
Leadership developments: In addition to Greg Owens assuming the role of Manugistics chairman, the company made several key leadership appointments:
Dr. Robert L. Phillips was named chief technology officer. Phillips, an internationally recognized expert in pricing and revenue management, is driving key Manugistics technology initiatives, including the commercialization of Manugistics’ innovative EPO solutions for broad industry application.
Michael G. Simonetto was named senior vice president of channels and alliances, charged with expanding Manugistics’ relationships with leading systems integrators and strategy consultancies on a global basis.
In addition, Esther Dyson, chairman of EDventure Holdings – publisher of computer industry literature and a sponsor of national and international computer industry forums – and Steven A. Denning, Executive Managing Member of General Atlantic Partners, LLC, were appointed to the Manugistics board of directors.
Conference Call Information:
Manugistics has scheduled a simultaneous conference call and Web-cast for Monday, March 26, 2001 at 5:00 PM Eastern Standard Time to discuss the company’s financial performance for its fourth quarter and full year of fiscal 2001. Interested parties may listen to the Web-cast by going to manugistics.com
A recording of the call will be available from 7:00 PM EST Monday, March 26th through 7:00 PM EST Thursday, March 29th. To listen to the recording, callers within North America may call 1-800-633-8284. Callers outside North America may call 858-812-6440. Callers to the recording will be required to enter the access number for this call, which is 18316704. In addition, the Web-cast will be archived from 7:00 PM EST Monday, March 26th through 7:00 PM EST Thursday, March 29th.
About Manugistics Group, Inc.
Manugistics is the leading global provider of Enterprise Profit OptimizationÔ (EPO) solutions – the first solutions to simultaneously optimize a company’s supply- and demand-side functions. Manugistics EPO and eMarketplace solutions help companies lower operating costs, enhance profitability and accelerate growth. The company’s list of clients includes industry leaders such as 3Com, Amazon.com, Boeing, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Ford, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Texas Instruments, Timberland, Unilever, and United Airlines. For more information, go to www.manugistics.com.
>>View Financials (.pdf file)
FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301-984-5330.
Investor Contacts:
Nate Wallace
Manugistics Group, Inc.
Vice President, Investor Relations
301-984-5059
Raj Rajaji
Manugistics Group, Inc.
Chief Financial Officer
301-984-5087
Press Contacts:
Didi Blackwood
Manugistics Group, Inc.
dblackwo@manu.com
301-984-5330
Eamon Bobowski
Ogilvy PR (For Manugistics)
eamon.bobowski@ogilvypr.com
202-736-1652 |
