Manugistics, Inc. (MANU) Message Board

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Technology Stocks : Manugistics, Inc. (MANU)

MANU 16.59

-0.4%

Jan 14 3:59 PM EST

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To: Sabrejet who wrote (670)	5/26/1998 12:48:00 AM
From: Clam Clam	Read Replies (1) of 1670

Agree with you secebra, it is not unusual for share sales after every quarterly report. Whether the CFO sold 2/3 of his shares or 0/3 of his shares, these guys will probably get sued. Screw ups this bad after such a huge quarter need to be looked into. That they are actually guilty of something (other than incompetence) is not a high probability but you have to wonder if they reported the number they did in the February quarter just so that they could call themselves the largest company in supply-chain management (the number they reported was $1mm higher than i2's Q4). They might have wanted to be able to make this claim for marketing purposes in anticipation of increased competition vs i2. Gibson has in the past stressed execution like few other CEO's I have ever seen so I am just at a loss to understand just how badly he could underestimate what it would take to hit Q1 numbers. Risk/reward dictates you guide analysts to a beatable estimate and you hide excess revenues to make sure you beat it consistently. Something just doesn't add here. I understand the challenges of hypergrowth companies and back-end loaded software companies in particular but this one just smells wrong. I have seem quite a few blow-ups over the last few years (including a few I owned) but I have usually been able to realize what risk I overlooked and learned something from it... until now. I agree it needs to be looked into and a better explanation provided. 'A more complex selling cycle due to the Promira acquisition enlargin deal sizes' isn't enough to explain the $10mm upside in Q4 and subsequent shortfall.

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