ATLANTA, Dec. 4 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq: LGTY), a
leading supplier of collaborative solutions to optimize the supply chain,
today announced financial results for the second quarter of fiscal year 2009.
Key second quarter fiscal year 2009 financial highlights include:
-- Total revenues for the quarter ended October 31, 2008 were $10.5
million, a decrease of 6% over the second quarter of fiscal 2008;
-- Software license fees for the quarter ended October 31, 2008 were $3.3
million, a decrease of 4% over the second quarter of fiscal 2008;
-- Services and other revenues for the quarter ended October 31, 2008 were
$1.4 million, a decrease of 32% over the second quarter of fiscal 2008;
-- Maintenance revenues for the quarter ended October 31, 2008 were $5.8
million, an increase of 2% over the second quarter of fiscal 2008; and
-- Operating earnings for the quarter ended October 31, 2008 were $2.2
million compared to operating earnings of $2.2 million for the second quarter
of fiscal 2008.
GAAP net earnings were $1.6 million or $0.12 earnings per fully diluted
share for the second quarter of fiscal 2009 compared to net earnings of $1.7
million or $0.13 earnings per fully diluted share for the second quarter of
fiscal 2008. Adjusted net earnings, which exclude stock option compensation
expense and acquisition-related amortization of intangibles expense, were $1.7
million or $0.13 earnings per fully diluted share for the quarter ended
October 31, 2008, compared to adjusted net earnings of $1.8 million or $0.13
earnings per fully diluted share for the same period last year.
Total revenues for the six months ended October 31, 2008 were $19.9
million or a 14% decrease compared to the comparable period last year.
Software license fees for the six months were $5.3 million or a 35% decrease
compared to the same period last year. Services and other revenues were $3.0
million or a 27% decrease compared to the same period last year. Maintenance
revenues were $11.6 million or a 6% increase compared to the same period last
year. For the six months ended October 31, 2008, the Company reported
operating earnings of approximately $3.2 million compared to operating
earnings of $5.2 million for the same period last year.
GAAP net earnings were approximately $2.2 million or $0.17 per fully
diluted share for the six months ended October 31, 2008 compared to net
earnings of $3.5 million or $0.26 per fully diluted share for the same period
last year. Adjusted net earnings, which for the current period exclude stock
option compensation expense and an acquisition-related amortization of
intangibles expense, were $2.5 million or $0.19 earnings per fully diluted
share for the six months ended October 31, 2008 compared to net earnings of
$4.0 million or $0.30 earnings per fully diluted share the same period last
year.
The Company is including adjusted net earnings and adjusted net earnings
per share in the summary financial information provided with this press
release as supplemental information relating to its operating results. This
financial information is not in accordance with, or an alternative for, GAAP
and may be different from non-GAAP net earnings and non-GAAP per share
measures used by other companies. The Company believes that this presentation
of adjusted net earnings and adjusted net earnings per share provides useful
information to investors regarding certain additional financial and business
trends relating to its financial condition and results of operations.
The overall financial condition of the Company remains strong, with cash
and investments of approximately $45.2 million as of October 31, 2008. This is
approximately an $814,000 sequential increase in cash and investments compared
to July 31, 2008 and approximately a $5.6 million increase compared to October
31, 2007. During the quarter, the Company repurchased 27,122 shares of its
common shares for approximately $181,000 under its authorized stock repurchase
program.
"Given the current economic conditions, we are pleased with our results
for the quarter. While total revenues are down slightly year-over-year, we
sequentially increased license fees by 63%, total revenues by 12%, and
operating earnings by 122% for the second quarter when compared to the first
quarter of fiscal year 2009. Additionally, Logility added 13 new customers
during the quarter," said J. Michael Edenfield, Logility president and chief
executive officer. "With the completion of our 14th consecutive quarter of
profitability and our large and satisfied customer base, I remain confident in
our solutions, people, business strategy and ability to compete and win."
"Our two-brand strategy continues to offer companies the ability to
increase supply chain discipline and efficiency while achieving a rapid return
on investment through improved cash flow, lower inventory investments and
higher customer service levels," continued Edenfield. "Logility Voyager
Solutions and Demand Solutions help companies of all sizes effectively
synchronize global market demand with supply and distribution to improve
performance, even in difficult global economic environments."
Highlights for the second quarter of fiscal 2009 include:
Customers:
-- Notable new and existing customers placing orders with Logility in the
second quarter include: Arch Chemicals, Augusta Sportswear, Bemis
Manufacturing Company, Coaster Company of America, Haynes Furniture Company,
Magneti Marelli, New Balance PTY, Rawlings Sporting Goods, SKF AB, Snack
Brands Australia, and Therma-Tru Doors.
-- During the quarter, software license agreements were signed with
customers located in 12 countries including: Australia, Canada, China, India,
Ireland, Italy, Kenya, the Netherlands, Poland, Sweden, the United Kingdom,
and the United States.
-- Demand Management, a wholly-owned subsidiary of Logility, hosted
INNOV8, Demand Solutions' 21st Customer Conference in September. The four day
event included customer and partners focused on driving supply chain
innovation. Keynote speaker Andre Martin, a pioneer in retail supply chains,
presented his theory on improving supply chain efficiency and planning at the
retail level to further reduce compounded safety stock throughout the supply
network. The Demand Solutions global footprint was well represented with
resellers from Europe, Brazil, Australia, Singapore, India and the United
States.
-- During the second quarter, Logility held "Score Supply Chain Excellence
with Demand Planning," the latest webcast in its popular Supply Chain Power
Hour educational series. The webcast featured Logility customers Brown Shoe
Company and Lance, Inc. which shared their unique perspectives on how to
successfully increase visibility into retail market demand and synchronize
supply chains to deliver higher profits.
-- Logility announced that Electrolux Home Care Products North America
successfully implemented Logility Voyager Solutions(TM) to increase demand
visibility, strengthen collaboration, improve forecast accuracy and increase
customer service levels. Logility will help Electrolux streamline and support
its global demand and supply planning needs.
-- Logility customer David Yurman, the maker of classic bracelets, chains,
earrings, necklaces, rings, and jewel-encrusted watches catering to a high-end
clientele, was named a Standout SMB by Consumer Goods Technology magazine.
David Yurman implemented Logility Voyager Solutions to synchronize inventory
planning policies with a multi-echelon demand plan to improve inventory
management, strengthen customer service levels, establish a S&OP process and
improve supply chain efficiency to support continued growth.
Products and Technology:
-- Demand Management announced Demand Solutions(R) Sales & Operations
Planning Version 11 (DS S&OP). The market-leading DS S&OP solution includes
additional functionality to further increase strategic decision-making
efficiency including: auto-update for Microsoft Office, expanded workspace
dashboards, and extended capabilities for high-level capacity planning.
-- Demand Management announced the release of Demand Solutions(R) Mobile
Pipeline at its 21st Annual Customer Conference in September. Demand Solutions
Pipeline is already a popular collaboration tool with hundreds of users
worldwide. The new mobile functionality takes collaborative forecasting to the
next level by allowing mobile salespeople and trading partners to access and
update product forecasts and demand plans via PDA or Blackberry phone.
-- Logility continued to advocate the benefits available with green supply
chain management initiatives at the Forecaster's Business Forecasting and
Planning Excellence event. The presentation outlined how Logility Voyager
Solutions enables sustainability in the supply chain to create value not only
for the environment, but for companies and their customers.
-- Logility was included in Software Magazine's 26th annual Software 500
ranking of the world's largest software service providers. Logility has been
consistently ranked in the list for more than five years as a result of
continued strong performance in the supply chain management software market.
Over the past four years, Logility has steadily climbed up 65 spots in the
listing to its current 2008 ranking of 273.
-- Mike Edenfield, president and CEO of Logility, was named one of
Georgia's Top-Performing CEOs by the Atlanta Business Chronicle. The Atlanta
Business Chronicle selected the 25 Top-Performing CEOs of Georgia's publicly
owned companies based on the return they produced for shareholders during the
five-year period Dec. 31, 2002 to Dec. 31, 2007. Logility's CEO, Mike
Edenfield was ranked at 14 in the list of the top 25.
About Logility
With more than 1,250 customers worldwide, Logility is a leading provider
of collaborative supply chain planning solutions that help small, medium,
large and Fortune 1000 companies realize substantial bottom-line results in
record time. Logility Voyager Solutions feature performance monitoring
capabilities in a single Internet-based framework and provide supply chain
visibility; demand, inventory and replenishment planning; sales and operations
planning; supply and global sourcing optimization; transportation planning and
execution; and warehouse management. Demand Solutions provide forecasting,
demand planning and point-of-sale analysis for maximizing profits in
manufacturing, distribution and retail operations. Logility customers include
Avery Dennison Corporation, BP (British Petroleum), Hyundai Motor America,
Leviton Manufacturing Company, McCain Foods, Pernod Ricard, Remington Products
Company, Sigma Aldrich, Under Armour Performance Apparel and VF Corporation.
Logility is a majority-owned subsidiary of American Software (NASDAQ: AMSWA).
For more information about Logility, call 1-800-762-5207 or visit
http://www.logility.com.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to
substantial risks and uncertainties. There are a number of factors that could
cause actual results to differ materially from those anticipated by statements
made herein. These factors include, but are not limited to, changes in
general economic conditions, technology and the market for the Company's
products and services including economic conditions within the e-commerce
markets; the timely availability and market acceptance of these products and
services; the challenges and risks associated with integration of acquired
product lines and companies; the effect of competitive products and pricing;
the uncertainty of the viability and effectiveness of strategic alliances; and
the irregular pattern of the Company's revenues. For further information
about risks the Company could experience as well as other information, please
refer to the Company's Form 10-K for the year ended April 30, 2008 and other
reports and documents subsequently filed with the Securities and Exchange
Commission. For more information, contact Vincent C. Klinges, Chief Financial
Officer, Logility, Inc., 470 East Paces Ferry Rd., Atlanta, GA 30305, (404)
261-9777. FAX: (404) 264-5206; INTERNET: www.logility.com or E-mail:
askLogility@logility.com.
Logility is a registered trademark and Logility Voyager Solutions is a
trademark of Logility. Demand Solutions is a registered trademark of Demand
Management, Inc., a wholly-owned subsidiary of Logility, Inc. Other products
mentioned in this document are registered, trademarked or service marked by
their respective owners.
LOGILITY, INC.
Consolidated Statements of Operations Information
(In thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
October 31, October 31,
Pct Pct
2008 2007 Chg. 2008 2007 Chg.
Revenues:
License $3,272 $3,399 (4%) $5,281 $8,076 (35%)
Services & other 1,387 2,039 (32%) 2,956 4,051 (27%)
Maintenance 5,824 5,696 2% 11,634 10,971 6%
Total Revenues 10,483 11,134 (6%) 19,871 23,098 (14%)
Cost of Revenues:
License 1,486 1,520 (2%) 2,738 3,154 (13%)
Services & other 790 1,023 (23%) 1,692 2,045 (17%)
Maintenance 1,264 1,267 0% 2,455 2,347 5%
Total Cost of Revenues 3,540 3,810 (7%) 6,885 7,546 (9%)
Gross Margin 6,943 7,324 (5%) 12,986 15,552 (16%)
Operating expenses:
Research and development 1,803 1,948 (7%) 3,575 3,825 (7%)
Less: capitalized
development (516) (630) (18%) (1,023) (1,155) (11%)
Sales and marketing 2,248 2,426 (7%) 4,723 4,878 (3%)
General and administrative 1,129 1,293 (13%) 2,359 2,630 (10%)
Acquisition related
amortization of intangibles 87 87 0% 174 174 0%
Total Operating Expenses 4,751 5,124 (7%) 9,808 10,352 (5%)
Operating Earnings 2,192 2,200 0% 3,178 5,200 (39%)
Interest Income & Other, Net 29 504 (94%) 185 913 (80%)
Earnings Before Income Taxes 2,221 2,704 (18%) 3,363 6,113 (45%)
Income Tax Expense 669 1,031 (35%) 1,117 2,593 (57%)
Net Earnings $1,552 $1,673 (7%) $2,246 $3,520 (36%)
Earnings per common share:
Basic $0.12 $0.13 (8%) $0.17 $0.27 (37%)
Diluted $0.12 $0.13 (8%) $0.17 $0.26 (35%)
Weighted Average Number of
Common Shares:
Basic 12,873 12,953 12,866 12,943
Diluted 13,056 13,307 13,078 13,343
Reconciliation of Adjusted Net
Earnings:
Net Earnings $1,552 $1,673 $2,246 $3,520
Acquisition related
amortization of
intangibles(1) 61 54 116 100
Stock-based compensation (1) 75 55 150 102
Tax valuation adjustment (non-
cash) - - - 283
Adjusted net earnings $1,688 $1,782 (5%) $2,512 $4,005 (37%)
Adjusted Net Earnings per
Share - Diluted $0.13 $0.13 0% $0.19 $0.30 (37%)
(1) - Tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
October April
31, 30,
2008 2008
Cash and Short-term investments $37,839 $42,732
Accounts Receivable:
Billed 4,060 6,897
Unbilled 1,234 1,424
Total Accounts Receivable, net 5,294 8,321
Deferred Tax Assets 73 74
Due from ASI 105 -
Prepaids & Other Current Assets 2,261 2,256
Current Assets 45,572 53,383
Investments - Long term 7,404 -
PP&E, net 336 401
Capitalized Software, net 4,472 4,560
Goodwill 5,809 5,809
Other Intangibles, net 683 871
Other non-current Assets 38 48
Total Assets $64,314 $65,072
Accounts Payable $215 $543
Accrued Compensation and Related costs 915 1,282
Accrued Reseller Commissions 890 1,013
Other Current Liabilities 883 965
Due to American Software Inc. - 638
Deferred Revenues 11,116 12,622
Current Liabilities 14,019 17,063
Deferred Tax Liability 1,598 1,620
Shareholders' Equity 48,697 46,389
Total Liabilities & Shareholders' Equity $64,314 $65,072
