MANU beats the street!!!!
Manugistics Posts Positive First Quarter Results
PR Newswire - June 22, 1999 16:16
ROCKVILLE, Md., June 22 /PRNewswire/ -- Manugistics Group, Inc. (Nasdaq: MANU), today
reported quarterly revenues and earnings for the three- month period ended May 31, 1999.
Manugistics generated revenues of $39.2 million for the quarter ended May 31, 1999. The Company
reported net income for the quarter of approximately $0.4 million, or approximately $0.01 earnings
per basic and diluted share, compared to a net loss of $8.5 million or $0.33 loss per basic and diluted
share in the quarter ending May 31, 1998.
"With our return to profitability in the first quarter, we believe that we are turning the corner and are
well positioned for the future. We are pleased that our positive performance reaffirms the confidence
of our customers, employees, and partners. Building on this momentum, we intend to move swiftly to
energize the company by adding new talent, delivering enhanced solutions, and creating a world-class
sales organization," said Greg Owens, president and chief executive officer of Manugistics. "I joined
Manugistics because of my strong conviction in the value of the franchise based upon the strength of its
products, domain expertise of its people, and early leadership in providing supply chain solutions for
e-business. These beliefs have been reinforced in my first two months with the Company."
"As the Global Managing Partner of the Andersen Consulting Supply Chain Management Practice, I
gained significant insight into all the principal supply chain management software vendors and learned
the capabilities of each. This knowledge, coupled with my recent experiences at Manugistics, makes
me more excited about the Company's future. I'm particularly excited about the introduction of our
new e-Chain Solutions and their compelling value as the 'open solution' for e-business," Owens added.
"These e-Chain Solutions build on Manugistics' scalable architecture and the Company's early focus on
packaged, re-usable integration. These solutions are unique, enabling clients to transform their
traditional supply chains to e-chains without a major 'back office' overhaul. We intend to aggressively
build on our leadership in e- business by targeting these solutions for key growth industries, building
momentum through customer success."
Building Momentum
Recent Company highlights include:
-- Manugistics e-Chain Solutions: Introduction of Manugistics e-Chain
Solutions for e-commerce -- Supply Chain Communities, Supply Chain
Fulfillment, and Virtual Service Provider -- providing collaboration,
robust optimization, and synchronization for extended supply chains.
-- Leadership in Integration: The extension of Manugistics Open
Application Integration(TM) with the future release of OAI/Net -- a new
integration product that will simplify business-to-business integration.
Manugistics' use of proven third-party integration technologies will enable
the achievement of rapid results for the extended supply chain.
-- Domain Expertise: The introduction of e-Compass(TM), a roadmap to
transform a traditional supply chain to an e-chain based on the proven
business framework of Manugistics' Supply Chain Compass(TM). e-Compass
reduces the inherent risks in implementation of supply chain management
practices by providing an organizational strategy for e-business initiatives.
About Manugistics
Headquartered in Rockville, MD, Manugistics Group, Inc. is a leading provider of solutions for
customer-centric supply chain optimization and has the largest global client base of any supply chain
provider. The company's solutions are used by nearly 900 companies to improve the flow of product
within and among companies from raw materials or parts through manufacturing to delivery of product
to the end customer. Manugistics' solutions allow its clients to create and optimize their supply chains
around their customers and are quick to implement, adapt easily to change, and deliver rapid results.
Its clients include Campbell Soup Company, Compaq, DuPont, General Electric, Georgia-Pacific,
Harley-Davidson, Imation, K-Mart, Mobil, Nestle, Starbucks, Timberland, United Distillers and
Vintners, and Wal-Mart.
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 such as "anticipate,"
"believe," "estimate," "intend," "expect," or "future.") Most importantly, there are a number of important
factors that could affect the Company's performance. Demand for the Company's supply chain
management software products and the Company's quarterly operating results could be affected by
business conditions or the general economy in domestic and international markets, the timely
availability and acceptance of the Company's products, technological change, the timing and results of
the Company's longer-term initiatives, concerns of prospective customers with Year 2000 issues, the
response of prospective customers to announced or commercially available products or pricing,
competitors' announcements and other marketing activities, acquisitions or marketing relationships, the
length of the Company's sales cycles (which lengthened in fiscal 1999), or the Company's ability to
integrate acquired operations and technologies rapidly and effectively. The Company's expense levels
are based largely on its expectations of future revenues, and if revenues were to be below expectations
(as occurred in fiscal 1999), the Company's operating results would be affected. The timing of releases
of the Company's software products can be affected by client needs, marketplace demands,
technological advances, and competitors' activities. The Company's operations in foreign markets,
including the Asia/Pacific and South America regions, might be affected by general economic
conditions in foreign countries, difficulties in staffing and managing international operations, changes in
foreign currency exchange rates, and political and economic instability. The Company's future
operating results and financial condition could also be affected by the Company's ability to continue to
successfully implement its restructuring actions (including reducing its expenditures), the Company's
ability to attract, motivate, and retain employees, including new senior management, and the effects of
significant adverse publicity resulting from the losses incurred by the company in fiscal 1999. For
further information, please refer to the Company's Form 10-K for the year ended February 28, 1999,
and other reports and documents filed with the Securities and Exchange Commission which are
publicly available, copies of which 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 28,
1999 1999
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $20,709 $20,725
Marketable securities 25,050 22,637
Accounts receivable -- net 46,765 50,987
Other current assets 12,588 14,805
Total current assets 105,112 109,154
PROPERTY AND EQUIPMENT -- NET 18,093 21,832
NONCURRENT ASSETS:
Software development costs -- net 20,419 20,540
Intangibles and other assets -- net 11,106 11,564
Deferred tax asset 9,710 9,240
TOTAL $164,440 $172,330
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $4,119 $8,142
Accrued liabilities 18,108 21,875
Restructuring Accruals 11,679 13,789
Line of Credit 9,500 9,500
Deferred revenue 27,553 24,710
Total current liabilities 70,959 78,016
LONG-TERM LIABILITIES 409 454
LONG-TERM RESTRUCTURING ACCRUAL 6,185 8,138
STOCKHOLDERS' EQUITY 86,887 85,722
TOTAL $164,440 $172,330
MANUGISTICS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)
Three Months Ended
May 31,
1999 1998
REVENUES:
License fees $13,097 $17,481
Services 26,096 23,642
Total revenues 39,193 41,123
OPERATING EXPENSES:
Cost of license fees 2,857 2,841
Cost of services 11,619 11,647
Sales and marketing 13,839 23,298
Product development 6,994 11,926
General and administrative 3,940 5,836
Restructuring costs 82 -
Total operating expenses 39,331 55,548
LOSS FROM OPERATIONS (138) (14,425)
OTHER INCOME-NET 357 1,091
NET INCOME (LOSS) BEFORE INCOME TAXES 219 (13,334)
BENEFIT FOR INCOME TAXES (170) (4,795)
NET INCOME (LOSS) 389 (8,539)
NET INCOME (LOSS) PER SHARE-BASIC $0.01 ($0.33)
NET INCOME (LOSS) PER SHARE-DILUTED $0.01 ($0.33)
SHARES USED IN SHARE COMPUTATION
BASIC 27,011 26,253
DILUTED 27,279 26,253
Manugistics and the Manugistics logo are registered trademarks and Synchronized Supply Chain
Management, Manugistics NetWORKS, e-Compass, Open Application Integration, Supply Chain
Compass, and VSP are trademarks of Manugistics, Inc. Additional information about Manugistics can
be found at the Company's site on the World Wide Web, at www.manugistics.com.
SOURCE Manugistics Group, Inc.
/CONTACT: Peter Q. Repetti, Chief Financial Officer, 301-984-5087, or
Nate Wallace, Director, Investor Relations, 301-984-5059, both of Manugistics
Group, Inc./
/Web site: manugistics.com
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