Manugistics Posts Record Revenue, Strong Net Income, Driven By License Fees Increase of 146 Percent Over Same Quarter Last Year
ROCKVILLE, Md., Dec 19, 2000 /PRNewswire via COMTEX/ -- Manugistics Group, Inc.
(Nasdaq: MANU), a leading global provider of intelligent supply chain and
eBusiness solutions for enterprises and marketplaces, today reported the results
of its record third quarter fiscal 2001 that reflect the company's growing
profitability and market momentum.
For the three-month period ended November 30, 2000, license fees increased 146
percent to $35.8 million from $14.6 million in the same quarter of the prior
year. Total revenues increased 96 percent to $70.0 million -- the largest amount
of total revenue for any fiscal quarter in the company's operating history --
from $35.8 million in the same quarter of the prior year. During the third
quarter, the company announced a two-for-one stock split of Manugistics common
stock, which began trading on a post-split basis on December 8, 2000.
For the three month period ended November 30, 2000, net income excluding
non-cash stock compensation benefit was $3.4 million -- or $.12 per basic and
$.10 per diluted share on a pre-split basis -- and $.06 per basic and $.05 per
diluted share on a two-for-one split-adjusted basis. All other per-share amounts
found in this announcement reflect the two-for-one stock split of Manugistics
common stock. This net income excluding non-cash stock compensation benefit of
$3.4 million compares to a net loss of $4.8 million, or $.09 per basic and
diluted share, in the same quarter of the prior year. Including the non-cash
stock compensation benefit associated with the re- priced stock options granted
to employees in January, 1999, the company reported net income of $9.4 million,
or $.16 per basic and $.14 per diluted share, for the three-month period ended
November 30, 2000.
"Our focused, vertical market approach, and the significant investments we've
made in our solutions, are two key factors propelling Manugistics success and
momentum in the market," said Greg Owens, Manugistics' chief executive officer
and chairman designate. "We are providing the industry- specific solutions our
clients need to give them a competitive advantage in the market, furthering our
goal of outpacing the market growth rate."
"Our eBusiness offerings continue to gain traction -- accounting for nearly 40
percent of our license fees this quarter," Owens continued. Key marketplace wins
include Elemica, a premier consortium-backed eMarketplace for the chemical
industry, and Instill, which is using Manugistics solutions to power a new
eBusiness offering for foodservice. Manugistics also continues to demonstrate
its dominance in transportation-related exchanges, signing new deals including
Agora Europe -- a new transportation marketplace -- and VALEPONTOCOM (an
investment of Companhia Vale do Rio Doce (CVRD)), which is nearing completion of
Multistrata, a South American logistics portal.
The company experienced continued strong demand in the third quarter for its
electronics and high technology solutions. In addition to the previously
announced deal with Cisco Systems to help it develop an extended global
collaborative supply chain network, Manugistics signed significant software
license contracts in the quarter with Emerson, Juniper Networks, Lexmark, and
NTT DoCoMo, Inc.
The company also signed significant new software licensing contracts in the
apparel, footwear and textiles; chemicals; consumer packaged goods; motor
vehicles and parts; transportation; and retail industries; and in the government
sector -- where the company signed the largest deal in its operating history, a
contract with Andersen Consulting in support of the Defense Logistics Agency's
Business Systems Modernization program.
Owens continued, "Upon completing the acquisition of Talus Solutions, Inc.,
Manugistics will assume the leadership position in pricing and revenue
optimization, substantially differentiating our solutions from those of our
competition. We are already seeing considerable interest for these solutions
from within our installed client base -- as well as in numerous joint sales
cycles -- which we expect will begin to translate into revenue early in our next
fiscal year. More importantly, the integration of Talus' products into
Manugistics' core offerings is on track to produce an entirely new category of
solutions designed to help enterprises and marketplaces increase revenue, lower
operating costs, enhance profitability and accelerate growth." The Talus
acquisition is expected to close on December 21, 2000, subject to the completion
of normal closing requirements.
Rich Bergmann, Manugistics' newly announced president, commented further,
"Manugistics' industry domain expertise, and best-of-breed solutions with their
proven ease and speed of implementation, are enabling us to win business across
key industry verticals around the world. Companies are increasingly recognizing
Manugistics' leadership position in supply chain optimization and B2B
infrastructure, and the return on investment that our solutions can quickly
deliver," said Bergmann. "Our market momentum and strong sales execution have
enabled us to grow our sales pipeline, increase quarterly sales visibility, and
win against the competition."
For the nine-month period ended November 30, 2000, Manugistics' license fees
increased 135 percent to $90.3 million from $38.4 million in the same nine-month
period of the prior year. Total revenue grew 64 percent to $178.7 million from
$108.8 million in the same nine-month period last year. Net income excluding
non-cash stock compensation expense was $3.2 million or $.06 per basic and $.05
per diluted share, for the nine-month period ended November 30, 2000. This
pro-forma net income compares to the net loss of $7.9 million, or $.14 per basic
and diluted share, in the nine-month period ended November 30, 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 $11.4 million, or $.20 per basic and diluted share, for the nine-month period
ended November 30, 2000.
Third Quarter Highlights:
Strong Sales Execution in the United States: The company signed significant
software license agreements with U.S.-based corporations such as Cisco Systems,
Inc., The Astec Power Division of Emerson, FreightWise, Inc., Harley-Davidson,
Inc., Juniper Networks, Inc., Lexmark International, Inc., Levi Strauss & Co.,
Scholastic, Inc. and the Vulcan Chemical Business Group of Vulcan Materials
Company.
Increased Market Penetration Globally: In addition to key wins in the United
States, the company signed significant software license agreements throughout
the rest of the Americas, across Europe, and in Asia and Australia, with
companies such as Agora Europe S.A., Arnott's Biscuits Limited, Cabot
Corporation, Diamant Boart S.A., Elemica Holdings Limited, Fabrica Nacional de
Lija, S.A. de C.V, Geodis Logistics France, Elektra S.A. de C.V., Mitsui
Chemicals, Inc., NTT DoCoMo, Inc., Parmalat Food, Inc., Unipart Group Ltd., and
VALEPONTOCOM S.A.
The company also executed an important strategic move into European government
markets, announcing this past week that it had been awarded a Basic Order
Agreement (BOA) by the NATO Consultation, Command and Control Agency (NC3A). The
agreement gives NATO's 19 member nations, 27 partner countries, and numerous
governmental agencies -- including NC3A -- direct access to Manugistics'
solutions.
Successful Convertible Note Placement: During the third quarter, Manugistics
successfully completed a private placement of $250 million principal amount of
5% Convertible Subordinated Notes due 2007. The company received total net
proceeds of approximately $242 million from the completed offering. As
previously announced, the company expects to use the net proceeds for working
capital and general corporate purposes, including capital expenditures and
research and development. The company may also use portions of the net proceeds
to acquire businesses, products, and technologies that complement or expand its
business.
Leadership developments: As previously announced, company founder William M.
Gibson, chairman of the board of directors, plans to retire at the end of the
company's fiscal year on February 28, 2001. With the recommendation of Gibson,
the board named Greg Owens chairman designate, to succeed Gibson upon his
retirement. Owens continues to serve as chief executive officer, relinquishing
the title of president.
The company also made two key leadership appointments.
Richard F. Bergmann was named president of the company. Prior to becoming
president, Bergmann was Manugistics' executive vice president of global sales
and services, leading a team recognized for world-class sales execution and
delivery of Manugistics' supply chain and eBusiness solutions.
The company named Gregory C. Cudahy executive vice-president of pricing and
revenue management. In this new position, Cudahy will be responsible for the
Talus pricing and revenue optimization solutions and integrating them into
Manugistics' core business. In addition, he will provide leadership for
Manugistics strategic consulting efforts on a global basis. Cudahy was formerly
the partner responsible for the North American practice of Andersen Consulting's
Supply Chain Management (SCM) Line of Business.
enVISION2000 Europe and Japan: Manugistics built on the success of its
enVISION2000 client conference held this past July in Orlando, Fla., holding two
additional conferences in Europe (Cannes) and Japan (Tokyo). Attendance at the
three-day European event was more than double last year's, with strong partner
and client presence representing 19 countries - evidence of Manugistics'
increased momentum across the region. In Japan, attendance jumped 50 percent at
the event over last year. The event was sponsored by such leading Japanese
companies as Fujitsu, NEC, NTT Communications, and Nippon Steel.
Conference Call Information
Manugistics has scheduled a simultaneous conference call and Web-cast for
Tuesday, December 19, 2000 at 5:00 PM Eastern Standard Time to discuss the
company's performance in its third quarter of fiscal 2001. Interested parties
may listen to the Web-cast by going to the Web-cast by going to
manugistics.com
A recording of the call will be available from 7:00 PM EST Tuesday, December
19th through 7:00 PM EST Thursday, December 21st. 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 17162597.
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
marketplaces. With nearly 1000 clients, Manugistics helps power intelligent
decisions for profitable growth in leading companies such as 3Com, Amazon.com,
BP, Brown & Williamson, Coca-Cola Bottling, Compaq, DuPont, eConnections,
FreightWise, General Electric, Harley-Davidson, Hormel, Nestle, Texas
Instruments and Unilever. |
