Manugistics Announces Second Quarter Results
ROCKVILLE, Md., Sept. 15 /PRNewswire/ -- Manugistics Group, Inc.
(Nasdaq: MANU) today reported quarterly revenues and earnings for the period
ended August 31, 1999. For its second quarter, Manugistics generated revenues
of $33.8 million. The company reported a net loss for the quarter of
approximately $3.4 million, or $.13 per basic and diluted share compared to a
net loss of $6.0 million, or $.23 per basic and diluted share, in the same
quarter in the prior year.
"Manugistics continues to move forward with its transition with an
infusion of new leadership, a shift to solution selling and the rebuilding of
the global sales organization. These changes are necessary to position
Manugistics for future growth, and I am encouraged by our progress," said Greg
Owens, president and chief executive officer of Manugistics. "While I am
disappointed in our second quarter performance, my belief in the value of this
franchise has increased based upon the strength of our solutions, the domain
expertise of Manugistics employees and the significant value that we provide
for our clients."
"I am also excited by the interest in our e-Chain solutions that is fueled
by general trends in eBusiness," continued Owens. "As we move forward, we
will focus on completing our transition plan, growing software license
revenues, and continuing to prudently manage expenses."
For the six-month period ending August 31, 1999, Manugistics generated
revenues of $73.0 million. The company reported a net loss for the six months
of approximately $3.0 million, or $0.11 per basic and diluted share, compared
to a net loss of $14.5 million, or $.55 per basic and diluted share, in the
same period of the prior year.
Second Quarter Highlights
New Executive Leadership: As previously announced during the quarter,
three new executives have joined the management team -- Terry Austin,
executive vice president of electronics and high technology; Rich Bergmann,
executive vice president of global sales and services; and Jeff Jeter, senior
vice president of global marketing.
Client Wins: New and existing client wins for the quarter include Avon,
Fleming Foods, General Electric, Gillette, Kraft, Merial, Oxford Industries,
Ross Stores, Seiko Epson, Shell, and Wincanton Logistics.
Successful Implementations of Manugistics e-Chain Solutions: Manugistics
introduced its e-Chain Solutions in June 1999. Since this announcement,
clients such as Avnet, Compaq, Excel Logistics, and Mitsubishi Motors have
implemented these solutions.
Product Innovation: During Manugistics' annual conference, Working as
One'99, the Company launched Manugistics6, which contains significant new
functionality with Constraint-Based Master Planning (CBMP), Real-Time ATP+
(RTA+), and an enhanced user experience (VIEWpoint(TM). These Manugistics6
enhancements, coupled with the Open Application Integration(TM) (OAI(TM))
strategy, are generating demand.
Additional Information
Effective August 31, 1999, Peter Q. Repetti, chief financial officer,
resigned from Manugistics to pursue other opportunities. The Company has been
actively recruiting for a replacement while retaining a senior financial
consultant to assist management during the transition.
About Manugistics
Headquartered in Rockville, MD, Manugistics Group, Inc. is a leading
provider of solutions for customer-centric supply chain optimization and has
the largest global client base of any supply chain provider. The company's
solutions are used by nearly 900 companies to improve the flow of product
within and among companies from raw materials or parts through manufacturing
to delivery of product to the end customer. Manugistics' solutions allow its
clients to create and optimize their supply chains around their customers and
are quick to implement, adapt easily to change, and deliver rapid results.
Its clients include Campbell Soup Company, Compaq, DuPont, General Electric,
Georgia-Pacific, Harley-Davidson, Imation, K-Mart, Mobil, Nestle, Nokia,
Starbucks, Timberland, United Distillers and Vintners, and Wal-Mart.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to
risks and uncertainties, and there are important factors that could cause
actual results to differ materially from those anticipated by such statements.
Certain of such statements may be identified by use of words such as
"anticipate," "believe," "estimate," "intend," "expect," or "future." A
discussion of these factors is set forth in the Company's Form 10-K for the
year ended February 28, 1999, and other reports and documents filed with the
Securities and Exchange Commission which are publicly available, copies of
which may also be obtained by contacting the Company's Investor Relations
department at 301-984-5409. The Company assumes no obligation to update the
information contained in this press release.
MANUGISTICS GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
August 31, Feb 28,
1999 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 22,432 $ 20,725
Marketable securities 23,885 22,637
Accounts receivable - net 40,029 50,987
Other current assets 13,068 14,805
Total current assets 99,414 109,154
PROPERTY AND EQUIPMENT - NET 16,351 21,832
NONCURRENT ASSETS:
Software development costs - net 19,252 20,540
Intangibles and other assets - net 10,391 11,564
Deferred tax asset 9,913 9,240
TOTAL $ 155,321 $ 172,330
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,870 $ 8,142
Accrued liabilities 17,589 21,875
Restructuring Accruals 9,058 13,789
Line of Credit 9,500 9,500
Deferred revenue 24,742 24,710
Total current liabilities 65,759 78,016
LONG-TERM LIABILITIES 455 454
LONG-TERM RESTRUCTURING ACCRUAL 3,716 8,138
STOCKHOLDERS' EQUITY 85,391 85,722
TOTAL $ 155,321 $ 172,330
MANUGISTICS GROUP, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
August 31, August 31,
1999 1998 1999 1998
REVENUES:
License fees $ 10,754 $ 25,771 $ 23,852 $ 43,252
Services 23,041 27,169 49,136 50,811
Total revenues 33,795 52,940 72,988 94,063
OPERATING EXPENSES:
Cost of license fees 3,053 3,445 5,910 6,286
Cost of services 10,295 12,867 21,914 24,514
Sales and marketing 14,299 24,774 28,138 48,072
Product development 7,467 13,868 14,461 25,794
General and administrative 3,900 5,231 7,840 11,067
Acquisition-related expenses -- 3,095 -- 3,095
Restructuring costs (764) -- (682) --
Total operating expenses 38,250 63,280 77,581 118,828
LOSS FROM OPERATIONS (4,455) (10,340) (4,593) (24,765)
OTHER INCOME-NET 517 640 874 1,731
NET LOSS BEFORE INCOME TAXES (3,938) (9,700) (3,719) (23,034)
BENEFIT FOR INCOME TAXES (503) (3,734) (673) (8,530)
NET LOSS $ (3,435) $ (5,966) $ (3,046) $ (14,504)
NET LOSS PER SHARE-BASIC $ (0.13) $ (0.23) $ (0.11) $ (0.55)
NET LOSS PER SHARE-DILUTED $ (0.13) $ (0.23) $ (0.11) $ (0.55)
SHARES USED IN SHARE
COMPUTATION
BASIC 27,291 26,415 27,151 26,167
DILUTED 27,291 26,415 27,151 26,167
Manugistics and the Manugistics logo are registered trademarks and
Manugistics NetWORKS, e-Compass, Open Application Integration, Supply Chain
Compass, and VIEWPoint are trademarks of Manugistics, Inc. Additional
information about Manugistics can be found at the Company's site on the World
Wide Web, at www.manugistics.com .
SOURCE Manugistics Group, Inc.
CO: Manugistics Group, Inc.
ST: Maryland
IN: CPR
SU: ERN
09/15/1999 07:45 EDT prnewswire.com |
