Manugistics Announces Strong Second Quarter Fiscal 2001 Results; Profitability Driven by License Fees Increase of 165 Percent Over Second Quarter Fiscal 2000; Manugistics Announces Agreement to Acquire Talus Solutions, Inc.
ROCKVILLE, Md., Sept. 21 /PRNewswire/ -- Manugistics Group, Inc.
(Nasdaq: MANU), a leading global provider of intelligent supply chain and
eBusiness solutions for enterprises and evolving trading networks, today
reported strong second quarter fiscal 2001 results powered by significant
client wins across key vertical markets. The company also announced it has
signed an agreement to acquire Atlanta, Ga.-based Talus Solutions, Inc.
For the three-month period ended August 31, 2000, license fees increased
165 percent to $28.5 million from $10.8 million in the same quarter of the
prior year. Total revenues increased 72 percent to $58.2 million from $33.8
million in the same quarter of the prior year. Net income before non-cash
stock compensation expense was $1.0 million, or $.04 per basic and $.03 per
diluted share. This net income before non-cash stock compensation expense
compares to the net loss of $3.4 million, or $.13 per basic and diluted share,
in the same quarter of the prior year. Including the non-cash stock
compensation expense associated with the re-priced stock options granted to
employees in January, 1999, the company reported a net loss of $19.7 million,
or $.69 per basic and diluted share.
"I am pleased to report strong second quarter results for Manugistics; we
delivered profitability on a pro-forma basis with significant wins across our
key vertical markets," said Greg Owens, Manugistics' president and chief
executive officer. "Our investments in products and solutions, technology
innovation and sales execution have driven license fee growth of 165 percent
over the same quarter last year. For the fifth consecutive quarter the average
size of our significant deals grew -- reaching an all-time high of $1.2
million, an increase of more than 120 percent over the same quarter last year.
And we are committed to continuing our aggressive growth strategy to capture a
greater share of the burgeoning B2B eCommerce marketplace."
"In our second quarter, we had significant wins in head-to-head
competitions in the electronics and high technology and motor vehicles and
parts markets -- complementing significant wins in the consumer packaged
goods, pharmaceutical, and process and chemical markets where Manugistics is
traditionally strong," Owens said. "Our differentiated solutions and our
proven ability to rapidly deliver real business results in the Internet
economy, have helped Manugistics rise above the B2B eCommerce clutter to
become a preferred choice of market leaders."
Second quarter deals with 3Com and Texas Instruments highlight
Manugistics' emergence as a leading contender in the electronics and high
technology market. "Our momentum in this market is growing," said Owens,
noting that "Manugistics has completed a large multi-million dollar deal with
Cisco Systems, Inc. to help it develop an extended global collaborative supply
chain network." The company noted that there was no revenue recognized from
the Cisco deal in Manugistics' second quarter, adding that revenue recognition
is expected to commence in Manugistics' third quarter, and continue into
future quarters.
"I am also excited to announce that Manugistics has signed an agreement
today to acquire Talus Solutions, Inc. of Atlanta, Ga. Talus Solutions is a
leading provider of pricing and revenue management optimization solutions
across key industry marketplaces such as automotive, high technology, and
transportation, travel and hospitality, with approximately $40 million revenue
in 1999. For more than 20 years Manugistics has helped companies to plan for
and deliver the 'right product at the right place at the right time.' With
this acquisition, we are extending our capabilities to help companies provide
products 'at the right price' -- the price that maximizes both revenue and
margin."
"This strategic acquisition builds on our business strategy to
aggressively invest in new products and solutions, to differentiate ourselves
in the market, and to deliver results to our clients," Owens concluded. The
company anticipates the Talus Solutions acquisition will be completed by the
end of Manugistics' third fiscal quarter. Additional details about
Manugistics' acquisition of Talus Solutions can be found in a separate
Manugistics-issued press announcement, released concurrently with the
company's second quarter fiscal 2001 earnings announcement.
For the six-month period ended August 31, 2000, Manugistics' license fees
increased 128 percent to $54.5 million from $23.9 million in the same six-
month period of the prior year. Total revenues grew 49 percent to $108.7
million from $73.0 million in the same six-month period last year. The net
loss before non-cash stock compensation expense was $124,000, or $.00 per
basic and diluted share. This pro-forma net loss compares to the net loss of
$3.0 million, or $.11 per basic and diluted share, in the six-month period
ended August 31, 1999. Including the non-cash stock compensation expense
associated with the re-priced stock options granted to employees in January,
1999, the company reported a net loss of $20.8 million, or $.73 per basic and
diluted share, for the six-month period ended August 31, 2000.
"Beginning this past February, we have consistently advised as to the
potential non-cash impact commencing in our second quarter fiscal 2001, and
continuing into future quarters, of FASB Interpretation No. 44," said Raj
Rajaji, Manugistics' executive vice president and chief financial officer.
"The increase in our common stock market price since the FASB-mandated
measurement date of July 1, 2000 has resulted in a non-cash stock compensation
expense of $20.7 million being recorded for the second quarter. In each future
quarter, Manugistics will record the additional expense or benefit related to
the re-priced stock options still outstanding based on the change in
Manugistics' common stock price as compared to the measurement date."
Second Quarter Highlights:
Executing Across Key Vertical Markets: The company is executing across
key vertical markets, signing significant software license agreements
with companies such as 3Com Corporation, eConnections, Inc. and Texas
Instruments Incorporated in the electronics and high technology market,
and Deere & Co. and Mitsubishi Motor Sales of America, Inc. in the motor
vehicles and parts market. Other clients that signed significant new
software license agreements include Bristol-Myers Squibb Company,
Campbell Soup Company, K-Swiss, Inc., Matrix Essentials, Mitsui
Chemicals, Inc., Newroads, Inc., Novartis Consumer Health S.A., Roundy's,
Inc., Sara Lee Corporation, Spalding Sports Worldwide, Inc. and United
Distillers and Vintners (HP).
Executing On Government Strategy: Manugistics' approval for inclusion in
the U.S. General Services Administration's (GSA) schedule for information
technology software vendors signaled the company's strategic move into
federal government markets. The Defense Logistics Agency's (DLA) Business
Systems Modernization program was awarded to the Andersen Consulting
team, which plans to incorporate Manugistics NetWORKS(TM) in its
solution. Manugistics has been chosen by the Naval Transportation Support
Center (NAVTRANS) to help create an intelligent global transportation
network designed to improve customer service and cut costs. And
Manugistics and Electronic Data Systems Corporation have been selected to
help optimize the Navy's aviation maintenance, repair, and overhaul
operations under the Navy Supply Aviation Systems Command's Enterprise
Resource Planning and Supply Chain Management project.
enVISION2000: The company's award-winning eBusiness and supply chain
management conference enVISION2000 in Orlando, Fla. proved to be its most
successful to date -- drawing more customers, sponsors, exhibitors and
total attendees than previous years. More than 100 sessions and
exhibitors showcased solutions across most key markets including apparel-
footwear-textiles, consumer packaged goods, electronics and high
technology, food and agriculture, healthcare, logistics, mid-market,
motor vehicles and parts, pharmaceutical, process and chemical, and
retail.
Technology Innovations: Manugistics continues to deliver innovative
eInfrastructure offerings that are designed to enable one-to-many or
many-to-many trading partners to share, view and execute mission-critical
business decisions -- all in real time. Enhancing Manugistics'
configurable exchange platform -- Manugistics ExchangeWORKS(TM) -- the
company announced a strategic alliance with Moai Technologies, Inc. to
provide additional online negotiation and strategic sourcing capabilities
that can help enable organizations to reduce the cost of materials and
increase efficiencies across their supply chains.
New Solutions: The company announced the commercial availability of the
Intelligent Purchasing Solution. The solution strengthens eProcurement by
providing the intelligence behind key supplier decisions -- such as
strategic supplier sourcing and the optimization of material decisions --
to help companies streamline and improve their supply chain visibility
from procurement to transport to product destination.
Strategic Alliances: Continuing a strategy to work with complementary
technology providers, the company announced new business relationships
with BEA Systems, Inc., Moai Technologies, Inc. and Xelus, Inc. (formerly
LPA, Inc.).
Manugistics has scheduled a simultaneous conference call and Web-cast for
Thursday, September 21, 2000 at 5:00 PM Eastern Daylight Time to discuss the
company's performance in its second quarter of fiscal 2001. Interested parties
may listen to the Web-cast by going to manugistics.com.
About Talus Solutions, Inc.
Headquartered in Atlanta with offices in Silicon Valley and London, Talus
Solutions offers innovative software systems that have delivered billions of
dollars in incremental revenue and profits to its customers. More information
about Talus Solutions is available at talussolutions.com.
About Manugistics Group, Inc.
Headquartered in Rockville, Md., Manugistics Group, Inc. is a leading
global provider of intelligent supply chain and eBusiness solutions for
enterprises and evolving 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.
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," "continue," "estimate," "expect," "foresee,"
"future," "intend," "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, and the Company's subsequent
Quarterly Reports on Form 10-Q (in each case 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 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 is a registered trademark, and the Manugistics logo, the
phrase "Leveraged Intelligence," ExchangeWORKS and NetWORKS 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
MANUGISTICS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
August 31, February 29,
2000 2000
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $23,758 $34,051
Marketable securities 11,091 17,496
Accounts receivable - net 64,205 38,705
Other current assets 8,347 9,252
Total current assets 107,401 99,504
PROPERTY AND EQUIPMENT - NET 14,382 14,157
NONCURRENT ASSETS:
Software development costs - net 16,484 16,514
Intangibles and other assets - net 10,576 9,477
Deferred tax asset 17,669 12,776
TOTAL $166,512 $152,428
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 5,932 $5,792
Accrued liabilities 23,814 19,024
Restructuring Accruals 2,381 5,130
Line of Credit 6,000 6,000
Deferred revenue 29,176 26,727
Total current liabilities 67,303 62,673
LONG-TERM LIABILITIES 187 283
LONG-TERM RESTRUCTURING ACCRUAL 2,415 2,754
STOCKHOLDERS' EQUITY 96,607 86,718
TOTAL $166,512 $152,428
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,
2000 1999 2000 1999
REVENUES:
License fees $28,510 $10,754 $54,483 $23,852
Services 16,572 12,247 28,539 27,163
Solution support 13,068 10,794 25,647 21,973
Total revenues 58,150 33,795 108,669 72,988
OPERATING EXPENSES:
Cost of license fees 4,336 3,053 9,593 5,910
Cost of services 13,614 10,295 25,292 21,914
Sales and marketing 25,157 14,299 48,134 28,138
Product development 8,445 7,467 16,215 14,461
General and
administrative 5,306 3,900 10,310 7,840
Restructuring costs -- (764) -- (682)
Total operating
expenses 56,858 38,250 109,544 77,581
INCOME (LOSS)
FROM OPERATIONS 1,292 (4,455) (875) (4,593)
OTHER INCOME-NET 432 517 715 874
NET INCOME (LOSS)
BEFORE INCOME TAXES
AND NON-CASH STOCK
COMPENSATION EXPENSE 1,724 (3,938) (160) (3,719)
PROVISION (BENEFIT)
FOR INCOME TAXES 697 (503) (36) (673)
NET INCOME (LOSS)
BEFORE NON-CASH STOCK
COMPENSATION EXPENSE 1,027 (3,435) (124) (3,046)
NON-CASH STOCK
COMPENSATION EXPENSE 20,711 -- 20,711 --
NET LOSS $(19,684) $(3,435) $ (20,835) $(3,046)
NET LOSS PER
SHARE -BASIC $ (0.69) $(0.13) $(0.73) $(0.11)
NET LOSS PER
SHARE -DILUTED $ (0.69) $(0.13) $(0.73) $(0.11)
SHARES USED IN
SHARE COMPUTATION
BASIC 28,649 27,291 28,541 27,151
DILUTED 28,649 27,291 28,541 27,151
PER SHARE EXCLUDING
NON-CASH STOCK
COMPENSATION EXPENSE
NET INCOME (LOSS)
PER SHARE -BASIC $0.04 $(0.13) $0.00 $(0.11)
NET INCOME (LOSS)
PER SHARE -DILUTED $0.03 $(0.13) $0.00 $(0.11)
SHARES USED IN
SHARE COMPUTATION
BASIC 28,649 27,291 28,541 27,151
DILUTED 31,913 27,291 28,541 27,151
SOURCE Manugistics Group, Inc.
CO: Manugistics Group, Inc.; Talus Solutions, Inc.
ST: Maryland, Georgia
IN: CPR MLM
SU: ERN TNM
09/21/2000 16:20 EDT prnewswire.com |
