Manugistics Announces Fourth Quarter and Fiscal Year Results; Sequential Increase in License Fee Revenue of 51 percent from Third Quarter
ROCKVILLE, Md., March 23 /PRNewswire/ -- Manugistics Group, Inc.
(Nasdaq: MANU) today reported revenues and earnings for the three- and twelve-
month periods ended February 29, 2000. For its fourth quarter, Manugistics
generated license fee revenues of approximately $22.0 million (representing a
51 percent sequential increase from license revenues of approximately $14.6
million in the prior quarter ended November 30, 1999 and a 45 percent increase
from license fee revenues of approximately $15.2 million in the quarter ended
February 28, 1999). For its fourth quarter, total revenues were $43.7 million.
The company reported a net loss for the quarter of approximately $1.1 million,
or $.04 per basic and diluted share, compared to a net loss of $71.2 million,
or $2.66 per basic and diluted share, in the same quarter in the prior year.
"As demonstrated by the results of our fourth quarter, the company is
tracking ahead of the strategic plan that I established as the new chief
executive officer in June 1999. We have completed the turnaround and are fully
focused on our business-to-business (B2B) growth strategy. Our delivery of
Web-based solutions, our position as a premier provider of intelligent
decisions for eBusiness, and our execution as a management team positions us
well for the future," said Greg Owens, Manugistics' president and chief
executive officer.
Rich Bergmann, the company's executive vice president of global sales and
services continued, "I joined Manugistics to develop a world-class sales and
services organization, and to build upon the strengths of Manugistics
solutions, domain expertise of the employees, and the value proposition we
could deliver to the market. We will continue to focus on delivering
intelligent eBusiness solutions, enhancing our execution with global clients,
and increasing our strength and capabilities to execute."
For the twelve-month period ending February 29, 2000, Manugistics
generated revenues of $152.4 million. The company reported a net loss for the
twelve-month period of approximately $9.0 million, or $.33 per basic and
diluted share, compared to a net loss of approximately $96.1 million, or $3.64
per basic and diluted share, for the twelve-month period ending February 28,
1999.
"Our market presence as a B2B eCommerce solutions provider, our improved
brand recognition, and our sales execution are driving solid growth. We are
very optimistic about our ability to increase growth based upon our current
momentum, the strength of our solutions, and our ability to deliver customer
value in a burgeoning Internet economy," concluded Owens.
Fourth Quarter Highlights:
Client Wins: The company entered into significant software license
agreements with 27 clients. Notable client wins include Avon Products,
Inc., Brown & Williamson Tobacco Corporation, eDefined Ltd., Fuji Photo
Film B.V., Netherlands, Fuji Photo Film USA, Inc., FreightWise, Inc., GE
Lighting, GE Plastics, Inc., Glaxo Wellcome PLC, Lowe's Companies, Inc.,
Philips Lighting B.V., Tektronix, Inc., The Gillette Company, The Great
Atlantic & Pacific Tea Company, Inc., Koninklijke Wessanen nv (Tree of
Life) and Unilever Company Limited.
Existing Client Initiatives: The company is focused on building and
enhancing the value of Manugistics solutions for existing clients. As a
result of these initiatives, attendance at the company's semi-annual
client steering committee held this past February increased by 120
percent. For the past two quarters, license revenues from existing
clients have accounted for more than 50 percent of license revenues.
eBusiness Solutions: Building on more than 15 years of experience in
supply chain management solutions, the company aggressively focused on
providing intelligent decisions for evolving eBusiness trading networks.
The company showcased this vision at the Manugistics eVision Summit on
January 25th in Boston.
During the eVision Summit, the company announced new eBusiness solutions.
These solutions included a sponsored intelligent trading network --
bstreamz.com(TM) with options for application hosting using Manugistics
hosted solution -- b-networks.com(TM). Clients for these new offerings
included Canadian Tire Corporation Limited, eDefined Ltd. and
FreightWise, Inc.
The company's eBusiness offerings generated more than 30 percent of
license fees from new and existing clients.
Completing the Executive Management Team: The company successfully
recruited seasoned executive talent, completing the executive management
team. Raghavan (Raj) Rajaji has joined as executive vice president and
chief financial officer, Timothy T. Smith has joined as senior vice
president and general counsel and Daniel S. Stoks has joined as senior
vice president of Americas sales.
Strategic Alliances: Consistent with the strategy to work with
complementary software providers, the company announced a strategic
partnership with Siebel Systems, Inc. in January 2000. There are several
other alliances to be announced in the near future.
About Manugistics, Inc.
Headquartered in Rockville, Md., Manugistics Group, Inc. is the leading
provider of eBusiness solutions that enable intelligent decisions across
trading networks. With more than 900 clients, Manugistics solutions power
intelligent decisions for profitable growth in leading companies such as Coca-
Cola Bottling Co. Consolidated, Compaq Computer Corporation, E.I. DuPont
Company, General Electric Company, Harley-Davidson, Inc., Hormel Foods
Corporation, Mobil Oil Company, Nestle USA, The Timberland Company, Unilever
Company Limited, United Distillers and Vintners, and Wal-Mart Stores, Inc.
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," "future,"
"optimistic," or "will." A discussion of these factors is set forth in the
Company's Annual Report on Form 10-K for the year ended February 28, 1999, and
the Company's subsequent Quarterly Reports on Form 10-Q (in each case under
the caption "Factors That May Affect Future Results" and elsewhere in the
reports) and other reports and documents filed with the Securities and
Exchange Commission which are publicly available. Copies of these documents
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)
February 29, February 28,
2000 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $34,051 $20,725
Marketable securities 17,496 22,637
Accounts receivable - net 38,705 51,143
Other current assets 9,252 14,649
Total current assets 99,504 109,154
PROPERTY AND EQUIPMENT - NET 14,157 21,832
NONCURRENT ASSETS:
Software development costs - net 16,514 20,540
Intangibles and other assets - net 9,477 11,564
Deferred tax asset 12,776 9,240
TOTAL $152,428 $172,330
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 5,792 $8,142
Accrued liabilities 19,021 21,875
Restructuring Accruals 5,133 13,789
Line of Credit 6,000 9,500
Deferred revenue 26,727 24,710
Total current liabilities 62,673 78,016
LONG-TERM LIABILITIES 283 454
LONG-TERM RESTRUCTURING ACCRUAL 2,754 8,138
STOCKHOLDERS' EQUITY 86,718 85,722
TOTAL $152,428 $172,330
MANUGISTICS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended Fiscal Year Ended
February 29 or 28, February 29 or 28,
(Unaudited) (Unaudited)
2000 1999 2000 1999
REVENUES:
License fees $21,998 $15,185 $60,421 $73,802
Services 21,653 25,272 92,012 103,762
Total revenues 43,651 40,457 152,433 177,564
OPERATING EXPENSES:
Cost of license fees 4,089 3,780 13,685 13,415
Cost of services 12,273 12,852 44,976 50,585
Sales and marketing 17,597 29,672 60,809 103,006
Product development 7,173 11,883 29,150 49,389
General and
administrative 4,101 4,075 15,837 19,828
Acquisition-related
expenses -- -- -- 3,095
Restructuring costs (807) 33,074 (1,506) 33,775
Total operating
expenses 44,426 95,336 162,951 273,093
LOSS FROM OPERATIONS (775) (54,879) (10,518) (95,529)
OTHER INCOME-NET 155 80 1,390 2,362
NET LOSS BEFORE
INCOME TAXES (620) (54,799) (9,128) (93,167)
PROVISION (BENEFIT)
FOR INCOME TAXES 474 16,401 (183) 2,945
NET LOSS (1,094) (71,200) (8,945) (96,112)
NET LOSS PER SHARE-
BASIC $(0.04) $(2.66) $(0.33) $(3.64)
NET LOSS PER SHARE-
DILUTED $(0.04) $(2.66) $(0.33) $(3.64)
SHARES USED IN
SHARE COMPUTATION
BASIC 28,051 26,755 27,486 26,402
DILUTED 28,051 26,755 27,486 26,402
Manugistics, the Manugistics logo, solutions, are registered trademarks
while bstreamz.com, b-networks and Manugistics NetWORKS solutions are
trademarks of Manugistics, Inc. All other product or company names mentioned
are used for identification purposes only, and may be trademarks of their
respective owners. Additional information about Manugistics can be found at
the company's site on the World Wide Web, at manugistics.com.
SOURCE Manugistics Group, Inc.
CO: Manugistics Group, Inc.; Siebel Systems, Inc.
ST: Maryland
IN: MLM
SU: ERN
03/23/2000 16:12 EST prnewswire.com |
