6/21....MANU...Announces First Quarter Fiscal 2001 Results; Revenue Growth Driven by 98 Percent Increase in License Fees Over First Quarter Fiscal 2000
ROCKVILLE, Md., June 21 /PRNewswire/ -- Manugistics Group, Inc. (Nasdaq: MANU - news), a leading global provider of intelligent supply chain solutions for enterprises and evolving eBusiness trading networks, today reported revenues and earnings for the three-month period ended May 31, 2000. Manugistics' license fees grew 98 percent to $26.0 million from $13.1 million, and total revenues grew 29 percent to $50.5 million from $39.2 million, as compared to the quarter ended May 31, 1999. The company reported a net loss for the quarter of $1.2 million, or $0.04 per basic and diluted share, compared to net income of $0.4 million, or $0.01 per basic and diluted share, in the same quarter in the prior year.
``Our continuing aggressive investments in strengthening and growing our sales organization, in marketing initiatives and in technology innovation are paying off with our license fees growing nearly 100 percent from the same quarter last year. These investments have increased our marketshare and have positioned us as an eCommerce business-to-business (B2B) leader in direct materials and eInfrastructure,'' said Greg Owens, Manugistics' president and chief executive officer. ``Significant deals averaged nearly $1 million, a growth of 141 percent over the same quarter last year.''
``Commerx has chosen Manugistics to power advanced collaborative solutions for its eMarketplaces, including Commerx PlasticsNet. In addition, Manugistics has been chosen to enhance connectivity for The National Transportation Exchange (NTE). Commerx PlasticsNet and NTE were recently ranked as two of the top 10 independent trading exchanges by AMR Research(*),'' Owens continued. ``These impressive client wins are echoed in other B2B wins like the selection of our solutions to help power eConnections, an electronics industry eMarketplace. Manugistics was also selected this quarter to power global fulfillment for the number one business-to-consumer (B2C) e-tailing powerhouse Amazon.com. These wins validate the criticality of the Manugistics solutions in eCommerce.''
``As we build market presence and mindshare, we have continued to launch comprehensive new offerings, such as Manugistics ExchangeWORKS(TM) which facilitates the eInfrastructure of many-to-many exchanges. By addressing the needs of the world's emerging trading networks and leveraging our expertise, our people and our solutions, Manugistics is well-positioned to capitalize on today's dynamic marketplace,'' Owens concluded.
First Quarter Highlights:
* Client Wins: The company entered into significant software
license agreements with many new clients. Notable new client wins
include Amazon.com, ASMe (Advantage Sales and Marketing e, LLC),
Bradlees Stores, Inc., Minnesota Corn Processors, Inc., Publix
Supermarkets, Inc., Tnuva Ltd. and YKK (USA), Inc. Existing clients
that entered into significant additional software licensing
agreements include BP Amoco plc, Canadian Tire Corporation (CTC),
Rohm & Haas Company, and Staples, Inc.
Significant eMarketplace wins include Commerx, Inc., developers of
Commerx PlasticsNet and Commerx Metals(TM); eConnections, an
intelligent B2B hub dedicated to the electronics industry; and The
National Transportation Exchange, a trading exchange for the North
American ground transportation industry.
* Existing Client Initiatives: Building on its commitment to help
existing clients fully realize their objectives, Manugistics is on
schedule in its support of FreightWise, Inc.'s plan to offer a
comprehensive electronic marketplace for buyers and sellers of
transportation services and information. The Manugistics powered
FreightWise eMarketplace will automate transportation and logistics
processes, reviewing and selecting the most effective and efficient
transportation services across a virtual enterprise. Canadian Tire
Corporation has completed its pilot phase and begun rollout of its
Manugistics' powered-and-hosted collaborative network connecting
Canada's leading mass-merchandiser to its key suppliers.
* eBusiness Solutions: Consistent with its strategy to provide
clients with a comprehensive eBusiness trading environment, the
company announced Manugistics ExchangeWORKS -- an advanced,
configurable exchange platform for integrated supply chains and
intelligent eMarketplaces. ExchangeWORKS helps facilitate
sustainable, real-time trading environments that address mission
critical eBusiness requirements. Designed to enable recurring trade
among buyers and sellers in a many-to-many trading environment, the
platform helps clients develop and benefit from complex, online
business relationships.
* Professor Hau L. Lee Appointed to Board of Directors: The company
appointed Stanford University Professor Hau L. Lee, Ph.D., to its
Board of Directors. Widely recognized as a leading authority on
supply chain integration and coordination, Dr. Lee is providing
strategic insight to Manugistics as it continues to implement its
B2B growth initiatives.
* Strategic Alliances: Continuing a strategy to work with
complementary technology providers, the company announced new
business relationships with IBM, Intelisys Electronic Commerce,
Inc., Extricity, Inc., Management Information Systems Group, Inc.
(MISG), and The Cap Gemini Group.
About Manugistics Group, Inc.
Headquartered in Rockville, Md., Manugistics Group, Inc. is a leading global provider of intelligent supply chain solutions for enterprises and evolving eBusiness trading networks. With more than 900 clients, Manugistics helps power intelligent decisions for profitable growth in leading companies such as Amazon.com, Coca-Cola Bottling, Commerx, Compaq, DuPont, eConnections, FreightWise, General Electric, Harley-Davidson, Hormel, Nestle, Timberland and Unilever.
(*) RESOURCE: AMR Research Report on E-Commerce Applications for March 2000; Evaluating the Independent Trading Exchanges by Scott Latham.
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 or phrases such as ``anticipate,'' ``believe,'' ``estimate,'' ``intend,'' ``expect,'' ``foresee,'' ``future,'' ``optimistic,'' ``positioned,'' ``well-positioned'' 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 29, 2000 (under the caption ``Factors That May Affect Future Results,'' within the section titled ``Management's Discussion and Analysis of Financial Condition and Results of Operations'' and elsewhere in the report) 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)
May 31, February 29,
2000 2000
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $24,071 $34,051
Marketable securities 18,877 17,496
Accounts receivable - net 47,072 38,705
Other current assets 7,900 9,252
Total current assets 97,920 99,504
PROPERTY AND EQUIPMENT - NET 13,935 14,157
NONCURRENT ASSETS:
Software development costs - net 15,756 16,514
Intangibles and other assets - net 10,111 9,477
Deferred tax asset 15,462 12,776
TOTAL $153,184 $152,428
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $5,216 $5,792
Accrued liabilities 19,996 19,024
Restructuring accruals 3,456 5,130
Line of credit 6,000 6,000
Deferred revenue 26,908 26,727
Total current liabilities 61,576 62,673
LONG-TERM LIABILITIES 235 283
LONG-TERM RESTRUCTURING ACCRUAL 2,582 2,754
STOCKHOLDERS' EQUITY 88,791 86,718
TOTAL $153,184 $152,428
MANUGISTICS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
May 31,
(Unaudited)
2000 1999
REVENUES:
License fees $25,973 $13,097
Services 24,546 26,096
Total revenues 50,519 39,193
OPERATING EXPENSES:
Cost of license fees 5,257 2,857
Cost of services 11,678 11,619
Sales and marketing 22,977 13,839
Product development 7,770 6,994
General and administrative 5,004 3,940
Restructuring costs -- 82
Total operating expenses 52,686 39,331
LOSS FROM OPERATIONS (2,167) (138)
OTHER INCOME-NET 283 357
NET (LOSS) INCOME BEFORE INCOME TAXES (1,884) 219
BENEFIT FOR INCOME TAXES (733) (170)
NET (LOSS) INCOME $(1,151) $389
NET (LOSS) INCOME PER SHARE-BASIC $(0.04) $0.01
NET (LOSS) INCOME PER SHARE-DILUTED $(0.04) $0.01
SHARES USED IN SHARE COMPUTATION
BASIC 28,433 27,011
DILUTED 28,433 27,279
Manugistics is a registered trademark, and the Manugistics logo, the phrase ``Leveraged Intelligence,'' and ExchangeWORKS 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.
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