MANH 4/26 (great run ! .. $26 up +5 $33) Software Fees up 56% and Adjusted Net Income of $0.17, up 71% over Prior Year
siliconinvestor.com
ATLANTA, April 26 /PRNewswire/ -- Manhattan Associates, Inc., (Nasdaq: MANH - news), a global leader in providing supply chain execution and collaborative commerce solutions, today announced earnings for the first quarter ended March 31, 2001.
Software fees for the first quarter ended March 31, 2001, were $7.8 million, an increase of 56% over software fees of $5.0 million for the first quarter of 2000. Services revenue for the first quarter ended March 31, 2001, was $23.5 million, an increase of 34% over services revenue of $17.5 million for the first quarter of 2000. Total revenue for the first quarter ended March 31, 2001, was $36.1 million, an increase of 27% over revenue of $28.3 million for the first quarter ended March 31, 2000.
Adjusted net income for the first quarter of 2001, which excludes the effect of amortization expense for acquisition-related intangibles, increased by 71% over the first quarter of 2000. Adjusted net income for the quarters ended March 31, 2001, and March 31, 2000, was $5.1 million, or $0.17 per diluted share, and $3.0 million, or $0.10 per diluted share, respectively.
``We are pleased with our business during the quarter. We significantly increased our core revenues and profits from one year ago, made excellent progress with new products and infrastructure and managed our costs appropriately,'' said Richard Haddrill, Manhattan Associates' CEO and president. ``Our industry-leading technology, which provides a strong Return on Investment (ROI) for customers, along with our solid financial position and loyal install base, served us well this quarter and should continue to do so going forward.''
Key achievements in the quarter for Manhattan Associates include:
Formed an alliance with Manugistics Group, Inc., the leading global provider of Enterprise Profit Optimization(TM) (EPO) solutions -- the powerful combination of supply chain management and pricing and revenue optimization solutions -- for enterprises and eMarketplaces. Under this alliance, Manugistics will embed Manhattan Associates' PkMS(TM) advanced warehouse management system within Manugistics fulfillment offerings. The aim is to provide companies with an integrated end-to- end fulfillment management and execution system for both new and existing distribution channels.
Entered into a partnership with Intentia, a leading global supplier of ERP solutions. This worldwide strategic alliance provides customers with one fully integrated suite of ERP and supply chain execution solutions and provides customers with shared domain expertise. Manhattan Associates also signed a global reseller agreement with Intentia, calling for them to resell Manhattan Associates solutions, which will result in added exposure into key European and Asia-Pacific marketplaces such as Germany, France Italy, Sweden and Japan.
Achieved ISO 9001 Certification, making Manhattan Associates one of the first U.S. software development companies to achieve ISO 9001 certification under the recently approved version 2000 of the standard. The Company implemented the process of becoming audit ready in an extremely short timeframe -- only 15 weeks. Furthermore, the audit results were 78% higher than the industry average.
Increased momentum for the new infolink(TM) product by signing six new customers, developing a prototype for infolink source and adding Nike Team Sports, Inc. and Polo Ralph Lauren to the infolink Advisory Board, which was formed to foster collaboration between today's leading retailers and suppliers and to ensure the infolink solution addresses the business issues facing each supply chain participant.
Signed significant new customers including Belkin Components; Bob Evans Farms, Inc.; Healthcare Logistics Limited; Hibbett Sporting Goods, Inc.; Russ Berrie and Company, Inc.; Sundance Catalog Company and Yazaki North America, Inc.
Continued to increase revenue from International Operations with 35% of license revenue and 16% of total revenue for the quarter ended March 31, 2001, compared to 1% of license revenue and 10% of total revenue for the quarter ended March 31, 2000.
Business Outlook for 2001
The following statements are based on current expectations for the second quarter and fiscal 2001 regarding Manhattan Associates revenue and earnings per share. These statements are forward-looking, and actual results may differ materially. These statements do not reflect the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release. Manhattan Associates will keep its earnings release publicly available on its Web site (www.manh.com ). Prior to the start of Manhattan Associates' Quiet Period discussed below, the public can continue to rely on the expectations published in its earnings release as being its current expectations on matters covered, unless Manhattan Associates publishes a notice stating otherwise. Towards the end of each fiscal quarter, Manhattan Associates will have a ``Quiet Period'' when Manhattan Associates and its representatives will not comment concerning previously published financial expectations, and we disclaim any obligation to update during the Quiet Period. The public should not rely on previously published expectations during the Quiet Period. Manhattan Associates' Quiet Period at the end of the second quarter is expected to run from June 15, 2001, until the earnings are released the third or fourth week of July 2001.
For the fiscal year ending December 31, 2001, Manhattan Associates currently expects, in line with current analysts estimates, to achieve revenues in the range of $155,000,000 to $173,000,000 and earnings, excluding the effect of amortization expense for acquisition-related intangibles, in the range of $0.69 to $0.85 per fully diluted share. For the quarter ending June 30, 2001, Manhattan Associates currently expects to achieve revenues in the range of $37,000,000 to $41,000,000 and earnings, excluding the effect of amortization expense for acquisition-related intangibles, in the range of $0.16 to $0.20 per fully diluted share. These expectations assume that current general market conditions will improve modestly over the balance of the year.
About Manhattan Associates, Inc.
Manhattan Associates, Inc. is a global leader in providing supply chain execution and collaborative commerce solutions. These solutions leverage state-of-the-art technologies, innovative practices and the company's domain expertise to enhance performance, profitability and competitive advantage. Manhattan Associates has licensed more than 800 customers representing 1,100 facilities worldwide, which include some of the world's leading manufacturers, suppliers and retailers. For more information about Manhattan Associates, telephone 770.955.7070, or visit www.manh.com .
This press release may contain ``forward-looking statements'' relating to Manhattan Associates, Inc. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, undetected software errors, competitive pressures, technical difficulties, market acceptance, availability of technical personnel, changes in customer requirements and general economic conditions. Additional factors are set forth in ``Safe Harbor Compliance Statement for Forward-Looking Statements'' included as Exhibit 99.1 to the Company's Annual Report on Form 10-K for the year ended December 31, 2000. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
Three Months Ended
March 31,
2001 2000
(unaudited)
Revenue:
Software fees $7,841 $5,036
Services 23,497 17,544
Hardware 4,737 5,763
Total revenue 36,075 28,343
Costs and Expenses:
Cost of software fees 485 277
Cost of services 9,898 8,162
Cost of hardware 3,608 4,701
Research and development 5,038 3,046
Sales and marketing 5,313 3,977
General and administrative 4,192 3,773
Amortization of acquisition-related intangibles 1,310 94
Total costs and expenses 29,844 24,030
Operating income 6,231 4,313
Other income, net 550 403
Income before income taxes 6,781 4,716
Income tax provision 2,509 1,792
Net income $4,272 $2,924
Basic net income per share $0.16 $0.12
Diluted net income per share $0.14 $0.10
Weighted average number of shares:
Basic 26,544 24,366
Diluted 30,674 28,946
Reconciliation of Adjusted Net Income:
Net income $4,272 $2,924
Amortization of acquisition-related intangibles 1,310 94
Income tax effect (485) (36)
Adjusted net income 5,097 2,982
Adjusted net income per diluted share $0.17 $0.10
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
March 31, December 31,
2001 2000
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $68,741 $51,032
Short-term investments 3,014 16,635
Accounts receivable, net 30,024 28,177
Prepaid expenses and other current assets 2,766 2,573
Refundable income taxes 2,450 5,795
Deferred income taxes 2,289 2,488
Total current assets 109,284 106,700
Property and equipment, net 11,432 10,833
Intangible and other assets 33,562 34,842
Total assets $154,278 $152,375
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $13,994 $21,148
Current portion of capital lease obligations 159 176
Current portion of note payable 1,750 1,853
Deferred revenue 15,634 13,331
Total current liabilities 31,537 36,508
Long-term portion of capital lease obligations 567 616
Long-term portion of note payable 5,250 5,250
Total shareholders' equity 116,924 110,001
Total liabilities and shareholders' equity $154,278 $152,375
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SOURCE: Manhattan Associates |
