Manugistics Beats Fourth-Quarter Estimates
(03/27/01, 2:21 p.m. ET) InformationWeek
Manugistics Group Inc. beat fourth-quarter revenue projections, alleviating investor anxiety that a malaise had fallen over the enterprise software market.
The supply-chain automation company reported $89.3 million in revenue for the quarter ending Feb. 28, up 105 percent from a year ago and beating First Call estimates of $81.3 million. Earnings per share were 6 cents.
"It is great to see a bright spot in software," said equities analyst Brent Thill of Credit Suisse First Boston.
Manugistics (stock: MANU) signed 36 new deals during the quarter and said its average agreement size grew slightly to $1.3 million.
The company won several major automotive contracts, including deals with Daimler-Chrysler and Harley Davidson, indicating that even in an industry hit particularly hard by the economic slowdown, supply-chain projects remain high priority.
Companies remain willing to invest in high-impact projects that promise to reduce inventory and speed product delivery, said Manugistics CEO Greg Owens.
"Supply-chain management fares well through these cycles," Owens said. "No sector is recession resistant, but supply-chain management is as recession resilient as any I know."
The company finished the year at $268 million in revenue, up 76 percent from 1999.
The company widened its losses, however, reporting a net loss for the year of $28.1 million, or 48 cents per share, compared to a net loss of $8.9 million, or 16 cents per share in 1999.
The company remains conservative in its outlook for 2001, projecting 35 percent to 40 percent growth for the year, driven by new applications and product enhancements. |
