Record Operating Earnings Increase 22% driven by Record Revenues which Grew
12% when Compared to the Prior Year
ATLANTA, March 6 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq:
LGTY), a leading supplier of collaborative solutions to optimize the supply
chain, today announced financial results for the third quarter of fiscal
year 2007.
Key Third quarter financial highlights include:
* Total revenues for the quarter ended January 31, 2007 were a record
$11.3 million, an increase of 12% over the third quarter of fiscal 2006
and increased 13% compared to the quarter ended October 31, 2006;
* Software license fees for the quarter ended January 31, 2007 were $3.9
million, a decrease of 3% over the third quarter of fiscal 2006 and
increased 17% compared to the quarter ended October 31, 2006;
* Services and other revenues for the quarter ended January 31, 2007 were
$1.8 million, an increase of 31% over the third quarter of fiscal 2006
and increased 12% compared to the quarter ended October 31, 2006;
* Maintenance revenues for the quarter ended January 31, 2007 were $5.6
million, an increase of 20% over the third quarter of fiscal 2006 and
increased 10% compared to the quarter ended October 31, 2006;
* Operating earnings for the quarter ended January 31, 2007 were a record
$2.7 million, an increase of 22% compared to operating earnings of $2.2
million for the third quarter of fiscal 2006; and
* Pretax earnings for the quarter ended January 31, 2007 were $3.1
million, an increase of 30% compared to pretax earnings of $2.4 million
for the third quarter of fiscal 2006.
GAAP net earnings were $2.0 million or $0.15 earnings per fully diluted
share for the third quarter of fiscal 2007 compared to net earnings of $1.9
million or $0.14 earnings per fully diluted share for the third quarter of
fiscal 2006. Adjusted net earnings, which exclude stock option compensation
and acquisition related amortization of intangibles expense for the quarter
ended January 31, 2007 were $2.2 million or $0.16 earnings per fully
diluted share, compared to adjusted net earnings for the quarter ended
January 31, 2006 of $1.5 million or $0.11 earnings per fully diluted share
for the same period last year, which includes a tax expense related to an
adjustment to a normal effective income tax rate and excludes acquisition
related amortization of intangibles expense and a write-down of minority
investment.
Total revenues for the nine months ended January 31, 2007 were $30.9
million, an increase of 14% compared to the comparable period last year.
Software license fees for the nine months period were $10.5 million, an
increase of 5% compared to the same period last year. Services and other
revenues for the nine months period ended January 31, 2007 were $4.8
million, an increase of 15% compared to the same period last year.
Maintenance revenues were $15.6 million for the nine months period ended
January 31, 2007 or a 19% increase compared to the same period last year.
For the nine months ended January 31, 2007, the Company reported operating
earnings of approximately $5.4 million, an increase of 28% compared to
operating earnings of $4.2 million for the same period last year.
GAAP net earnings were approximately $4.0 million or $0.30 per fully
diluted share for the nine months ended January 31, 2007 compared to net
earnings of $6.5 million or $0.49 per fully diluted share for the same
period last year. Adjusted net earnings year to date as of January 31,
2007, which excludes stock option compensation expense and acquisition
related amortization of intangibles, were $4.6 million or $0.35 earnings
per fully diluted share compared to net earnings of $3.1 million or $0.23
earnings per fully diluted share the same period last year, which includes
an income tax expense and excludes acquisition related amortization of
intangibles expense, an income tax benefit and a write-down of minority
investment.
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 $31.9 million as of January 31, 2007.
This is approximately a $2.1 million sequential increase in cash and
investments compared to October 31, 2006 and approximately a $5.2 million
increase compared to January 31, 2006.
"We are pleased with Logility's performance during the quarter, adding
23 new customers and delivering all-time record revenues and operating
earnings," said J. Michael Edenfield, Logility president and chief
executive officer. "Our year to date financial performance is also strong
with growth in all revenue streams and 48% growth in adjusted net
earnings."
"The increased visibility, discipline and efficiency provided by
Logility's supply chain solutions allow manufacturing, wholesale, and
specialty retail enterprises the opportunity to significantly improve cash
flow, reduce inventory, increase supply chain responsiveness and accelerate
the sales and operations planning process," continued Edenfield. "Logility
is well positioned to streamline the supply chains of small, medium, large
and Fortune 1000 companies."
Highlights for the third quarter of fiscal 2007 include:
Customers:
* Notable new and existing customers placing orders with Logility in the
third quarter include: Argo Tea, Barilla America, BJ Services, Clement
Pappas & Co., EK Success Limited, Lion Brand Yarn, NB Coatings, Sandoz
Pty Ltd., Smithfield Foods, Tyco Fire and Safety, Waterpik Technologies,
Yurman Designs, XMA Ltd, and Zotos International.
* During the quarter, software license agreements were signed with
customers located in 11 countries including: Australia, Canada, Germany,
Italy, Japan, Spain, Sweden, Venezuela, the United Arab Emirates, the
United Kingdom, and the United States.
* Logility customer, Brown Shoe Company received an Outstanding
Achievement award for supply chain excellence from Consumer Goods
Technology magazine.
* Logility announced the dates for Connections 2007: Supply Chain Power
Plays conference to be held March 21-23, 2007 at the InterContinental
Buckhead Hotel in Atlanta, GA. The annual event give attendees the
opportunity to network and share ideas with fellow supply chain
professionals, learn how to leverage and maintain best practices within
supply chain management and hear from industry experts and peers.
* Logility continued its thought leadership initiative with the Supply
Chain Power Hour webcast, "Sunny Skies Ahead: Improve Forecast
Accuracy." The webcast featured the latest insight on improving forecast
accuracy to drive revenue and improve customer service.
* Logility customer Remy International joined Logility in an Institute of
Business Forecasting (IBF) webcast, "Remy International Jump Starts
Inventory Management." The webcast focused on how companies can improve
forecast accuracy and reduce excess inventory.
Products and Technology:
* Demand Management, Inc. introduced Demand Solutions Pipeline, a demand-
driven application that provides secure, encrypted access to supply
chain data anywhere, anytime. The Web-enabled Pipeline presents product
information in an intuitive tree-and-branch representation using plain-
language terms, not cryptic item numbers. Users can review entire
product families or any other desired category by history, forecast,
customer forecast, budget or capacity. Information can by organized by
business unit, market segment or sales category, depending on the needs
of the individual user.
* Logility received top rankings from the readers of Consumer Goods
Technology magazine. For the seventh consecutive year, Logility scored
among the top five vendors for both supply chain planning and supply
chain execution in 2007. Logility also received high rankings for
Customer Experience, which is based on the reader's experience
implementing and using the software.
* Food Logistics magazine named Logility to the FL100, the magazine's
annual listing of the top 100 technology suppliers to the food industry.
Companies included in the list are selected based on the input of Food
Logistics readers, industry analysts and consultants. This is the third
consecutive year that Logility has been named to the FL 100 which was
first introduced in 2004.
About Logility
With more than 1,100 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;
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, Brown Shoe Company, BP (British
Petroleum), Hyundai Motor America, Leviton Manufacturing Company, McCain
Foods, Pernod Ricard, Rand McNally, 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, 2006 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: http://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)
Third Quarter Ended Nine Months Ended
January 31, January 31,
Pct Pct
2007 2006 Chg. 2007 2006 Chg.
Revenues:
License $3,900 $4,000 (3%) $10,544 $10,026 5%
Services & other 1,773 1,352 31% 4,775 4,135 15%
Maintenance 5,623 4,698 20% 15,589 13,067 19%
Total Revenues 11,296 10,050 12% 30,908 27,228 14%
Cost of Revenues:
License 1,318 652 102% 4,192 2,570 63%
Services & other 879 811 8% 2,570 2,577 0%
Maintenance 1,229 1,159 6% 3,675 3,092 19%
Total Cost of Revenues 3,426 2,622 31% 10,437 8,239 27%
Gross Margin 7,870 7,428 6% 20,471 18,989 8%
Operating expenses:
Research and development 1,868 1,787 5% 5,391 5,183 4%
Less: capitalized
development (495) (537) (8%) (1,678) (1,771) (5%)
Sales and marketing 2,378 2,841 (16%) 7,310 7,522 (3%)
General and administrative 1,381 1,077 28% 3,821 3,593 6%
Acquisition related
amortization of
intangibles 88 88 0% 263 263 0%
Total Operating Expenses 5,220 5,256 (1%) 15,107 14,790 2%
Operating Earnings 2,650 2,172 22% 5,364 4,199 28%
Interest Income & Other,
Net 456 224 104% 1,226 373 229%
Income Before Income Taxes 3,106 2,396 30% 6,590 4,572 44%
Income Tax
Benefit/(Expense) (1,111) (541) 105% (2,559) 1,884 nm
Net Earnings $1,995 $1,855 8% $4,031 $6,456 (38%)
Earnings per common share:
Earnings Per Common Share -
Basic $0.15 $0.15 0% $0.31 $0.50 (38%)
Earnings Per Common Share -
Diluted $0.15 $0.14 7% $0.30 $0.49 (39%)
Weighted Average Number of
Common Shares:
Basic 12,898 12,787 12,897 12,799
Diluted 13,220 13,172 13,247 13,198
Reconciliation of Adjusted
Net Earnings:
GAAP Net Earnings $1,995 $1,855 $4,031 $6,456
Acquisition related
amortization of
intangibles(1) 88 88 263 263
Stock option expense(1) 85 - 290 -
Write-down of minority
investment(1) - - - 160
Excludes Income tax benefit - - - (1,884)
Includes normalized Income
tax expense - (453) - (1,897)
Adjusted net earnings $2,168 $1,490 46% $4,584 $3,098 48%
Adjusted Net Earnings per
Share $0.16 $0.11 45% $0.35 $0.23 52%
nm - not meaningful
(1) - Not income tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
January 31,
2007 2006
Cash and Short & Long-term
investments $31,887 $26,701
Accounts Receivable:
Billed 6,859 7,315
Unbilled 1,264 1,317
Total Accounts Receivable, net 8,123 8,632
Deferred Tax Assets 1,580 758
Prepaids & Other Current Assets 1,845 1,943
PP&E, net 449 461
Capitalized Software, net 6,102 6,449
Goodwill 5,809 5,809
Other Intangibles, net 1,406 1,800
Deferred Tax Assets - 1,806
Non-current Assets 77 220
Total Assets $57,278 $54,579
Accounts Payable $266 $255
Other Current Liabilities 6,141 8,013
Deferred Revenues 11,471 10,012
Current Liabilities 17,878 18,280
Deferred Income Taxes 1,188 -
Deferred Income Taxes - Due to ASI - 4,228
Shareholders' Equity 38,212 32,071
Total Liabilities &
Shareholders' Equity $57,278 $54,579
SOURCE Logility, Inc.
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Related links:
http://www.logility.com
http://www.prnewswire.com/comp/120967.html/
CONTACT:
Vincent C. Klinges, Chief Financial Officer,
Logility, Inc., +1-404-264-5477
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