Company Reports 12th Consecutive Quarter of Profitability and Record
Revenues for the Fiscal Year
ATLANTA, June 18 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq:
LGTY), a leading supplier of collaborative solutions to optimize the supply
chain, today announced financial results for the fourth quarter and fiscal
year 2008, achieving 12 consecutive quarters of profitability and record
revenues for the fiscal year.
Key fourth quarter financial highlights include:
-- Total revenues for the quarter ended April 30, 2008 were $11.9
million, a decrease of 8% over the fourth quarter of fiscal 2007;
-- Software license fees for the quarter ended April 30, 2008 were $4.1
million, a decrease of 27% over the fourth quarter of fiscal 2007;
-- Services and other revenues for the quarter ended April 30, 2008
were $1.8 million, a decrease of 11% over the fourth quarter of fiscal
2007;
-- Maintenance revenues for the quarter ended April 30, 2008 were $5.9
million, an increase of 16% over the fourth quarter of fiscal 2007; and
-- Operating earnings for the quarter ended April 30, 2008 were
approximately $2.4 million, a decrease of 23% compared to operating
earnings for the fourth quarter of fiscal 2007.
GAAP net earnings were $1.7 million or $0.13 earnings per fully diluted
share for the fourth quarter of fiscal 2008 compared to net earnings of
$2.0 million or $0.15 earnings per fully diluted share for the fourth
quarter of fiscal 2007. Adjusted net earnings, which exclude stock option
compensation expense and acquisition-related amortization of intangibles
expense, for the quarter ended April 30, 2008 were $1.8 million or $0.14
earnings per fully diluted share compared to adjusted net earnings of $2.1
million or $0.16 earnings per fully diluted share for the same period last
year.
Key fiscal year 2008 financial highlights include:
-- Total revenues for the twelve months ended April 30, 2008 were a
record $44.9 million, a 3% increase compared to the prior fiscal year;
-- Software license fees for the year ended April 30, 2008 were $14.6
million, a 10% decrease compared to the prior fiscal year;
-- Services and other revenues for the year ended April 30, 2008 were
$7.8 million, a 14% increase compared to the prior fiscal year;
-- Maintenance revenues were a record $22.5 million for the year ended
April 30, 2008, a 9% increase compared to the prior fiscal year; and
-- For the year ended April 30, 2008, the Company reported operating
earnings of approximately $8.3 million, a 3% decrease compared to operating
earnings of $8.5 million for the same period last year; operating earnings
for the twelve months ended April 30, 2008 included a non-cash write-down
of capitalized software development costs of $1.2 million.
GAAP net earnings were approximately $6.0 million or $0.45 per fully
diluted share for both the twelve months ended April 30, 2008 and April 30,
2007 period. Adjusted net earnings, which for the current period exclude
stock option compensation expense, acquisition-related amortization of
intangibles expense, a non-cash tax valuation adjustment, and write-down of
capitalized software costs, for the twelve months ended April 30, 2008 were
$7.5 million or $0.56 earnings per fully diluted share compared to net
earnings of $6.4 million or $0.49 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 $42.7 million as of April 30, 2008.
This is approximately a $1.4 million sequential increase in cash and
investments compared to January 31, 2008 and approximately a $10.4 million
increase compared to April 30, 2007. During the quarter, the Company
repurchased 114,421 of its common shares for approximately $787,000 under
its authorized stock repurchase program. For fiscal year 2008, the Company
purchased a total of 144,421 of its common shares for approximately $1.1
million under its authorized stock repurchase program.
"During fiscal year 2008, Logility delivered record revenues, increased
adjusted net income and welcomed 101 new customers," noted Mike Edenfield,
Logility president and CEO. "I remain confident in our solutions, people,
business strategy and ability to compete and win."
"In a slow economy, businesses try to identify ways to increase asset
productivity, lower operating costs and spur sales. For manufacturing- and
distribution-intensive companies in retail, consumer goods, wholesale and
industrial sectors, supply chain optimization is a key way to lower costs.
Hard economic times reward lean supply chains that can react rapidly to
changing customer demand. This is where Demand Solutions(R) and Logility
Voyager Solutions(TM) excel by providing greater visibility, driving rapid
benefits and accelerating business velocity."
Highlights for the fourth quarter of fiscal 2008 include:
Customers & Channels:
-- Notable new and existing customers placing orders with Logility in
the fourth quarter include: Barry Controls, Berry Plastics Corporation, C&C
Group, Electrolux Home Products, FEDCO, Fastenal Company, Master Pet, PPG
Industries Europe, RC Willey Furniture, Reliable Automatic Sprinkler, and
Rexnord LLC.
-- During the quarter, software license agreements were signed with
customers located in 12 countries including: Australia, Canada, Columbia,
France, Ireland, The Netherlands, New Zealand, Russia, Sweden, Switzerland,
the United Kingdom, and the United States.
-- Logility announced that C&C Group, a leading manufacturer, marketer
and distributor of branded alcoholic beverages, selected Logility Voyager
Solutions to support its continued growth, help predict demand more
accurately and build a more formalized and collaborative forecasting
process.
-- Logility announced supply chain executives from its customers
Clement Pappas and Intertape Polymer Group, were honored as Supply & Demand
Chain Executive magazine's "Practitioner Pros to Know." The 2008
"Practitioner Pros to Know" recognizes supply chain executives who are
helping build 21st century supply chains for their companies and are
visionaries who have excelled at using and implementing new supply chain
technologies to ensure that their company's supply chain continues to meet
the evolving requirements and challenges of our dynamic global economy.
-- Logility announced a partnership with Npo Business Solutions S.p.A.,
a provider of consulting services and solutions for logistics, demand and
supply chain management in Italy and Switzerland. The partnership will help
expand the presence of Logility Voyager Solutions in the Italian
marketplace.
-- Demand Management Inc., a wholly-owned subsidiary of Logility,
announced expansion of its international distributor network in China,
Mexico and Russia. With five new offices in Mexico City, Moscow, Shanghai,
Guangzhou and Hong Kong, Demand Management now has 31 offices globally
serving customers in 72 countries.
Logility Products and Technology:
-- Logility participated in an APICS vendor webcast "Are You Thinking
About a Green Supply Chain". During the webcast, representatives from
Logility and AMR Research discussed why "thinking green" is more than just
a trend in today's dynamic marketplace and gave insight on how companies
can incorporate green initiatives into their supply chain processes.
-- Logility was selected for the "START-IT 125" which names the most
influential technology providers in manufacturing. It is the third
consecutive year that Logility was included in the prestigious list which
is selected by editors and the editorial advisory board. Logility was
selected for inclusion because of its long history as a solutions provider
helping manufacturers build successful supply chains.
-- Logility announced that Logility Voyager Solutions further green
supply chain initiatives by enabling companies to reduce energy
consumption, lower carbon emissions, and reduce excess inventories to
minimize the overall impact on the environment. By optimizing global supply
chain management, Logility Voyager Solutions support sustainability efforts
in a number of ways including: improving forecasting for new product
introductions that are focused on environmentally friendly products;
planning the roll-out of enhanced packaging that minimizes waste and
includes recycled materials; reducing inventories by quickly sensing
changes in consumer demand and synchronizing market demand with production
goals; increasing manufacturing efficiency by optimizing changeovers and
tracking specific green Key Performance Indicators (KPIs) featured within
Logility Voyager Solutions; and modeling complex supply chain networks to
better plan production and distribution.
-- Logility was recognized as a "Top Logistics IT Provider for 2008" by
Inbound Logistics magazine. It is the eleventh consecutive year that
Logility has received this prestigious recognition. Logility was recognized
by the editors of Inbound Logistics for having the ability to continue to
be flexible and responsive, anticipating customers' evolving needs and
delivering innovative and practical solutions that meet the diverse needs
of the growing shipper community.
-- Logility announced that Logility Voyager Solutions help companies
increase forecast accuracy and manage the product lifecycle more
effectively through an Attribute-based forecasting model. Logility's
Attribute-based modeling provides significant improvements in the forecast
accuracy of New Product Introductions (NPIs), short lifecycle products and
the phase-out of existing products-product lifecycles that are more
difficult to forecast with traditional time-series approaches.
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, 2007 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)
Fourth Quarter Ended Twelve Months Ended
April 30, April 30,
Pct Pct
2008 2007 Chg. 2008 2007 Chg.
Revenues:
License $4,145 $5,698 (27%) $14,554 $16,242 (10%)
Services & other 1,822 2,053 (11%) 7,807 6,828 14%
Maintenance 5,911 5,102 16% 22,547 20,691 9%
Total Revenues 11,878 12,853 (8%) 44,908 43,761 3%
Cost of Revenues:
License 1,489 1,672 (11%) 6,007 5,864 2%
Services & other 906 1,126 (20%) 3,804 3,696 3%
Maintenance 1,334 1,183 13% 4,943 4,858 2%
Write-down of capitalized
software development
costs - - - 1,196 - nm
Total Cost of Revenues 3,729 3,981 (6%) 15,950 14,418 11%
Gross Margin 8,149 8,872 (8%) 28,958 29,343 (1%)
Operating expenses:
Research and development 1,952 2,251 (13%) 7,496 7,642 (2%)
Less: capitalized
development (520) (586) (11%) (2,155) (2,264) (5%)
Sales and marketing 3,057 2,468 24% 10,336 9,778 6%
General and administrative 1,141 1,496 (24%) 4,625 5,317 (13%)
Acquisition related
amortization of
intangibles 88 87 1% 351 350 0%
Total Operating Expenses 5,718 5,716 0% 20,653 20,823 (1%)
Operating Earnings 2,431 3,156 (23%) 8,305 8,520 (3%)
Interest Income & Other,
Net 199 377 (47%) 1,650 1,603 3%
Earnings Before Income
Taxes 2,630 3,533 (26%) 9,955 10,123 (2%)
Income Tax Expense 953 1,571 (39%) 3,924 4,130 (5%)
Net Earnings $1,677 $1,962 (15%) $6,031 $5,993 1%
Earnings per common share:
Basic $0.13 $0.15 (13%) $0.47 $0.46 2%
Diluted $0.13 $0.15 (13%) $0.45 $0.45 0%
Weighted Average Number of
Common Shares:
Basic 12,916 12,906 12,942 12,899
Diluted 13,272 13,225 13,331 13,245
Reconciliation of Adjusted
Net Earnings:
Net Earnings $1,677 $1,962 $6,031 $5,993
Acquisition related
amortization of
intangibles(1) 56 48 213 207
Stock-based compensation (1) 64 49 229 224
Write-down of capitalized
software development costs(1) - - 725 -
Tax valuation adjustment
(non-cash) - - 283 -
Adjusted net earnings $1,797 $2,059 (13%) $7,481 $6,424 16%
Adjusted Net Earnings per
Share - Diluted $0.14 $0.16 (13%) $0.56 $0.49 14%
(1) - Tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
April 30, April 30,
2008 2007
Cash and Short-term investments $42,732 $32,316
Accounts Receivable:
Billed 6,897 7,764
Unbilled 1,424 1,412
Total Accounts Receivable, net 8,321 9,176
Deferred Tax Assets 74 1,361
Due from ASI - 1,167
Prepaids & Other Current Assets 2,256 1,995
Current Assets 53,383 46,015
PP&E, net 401 436
Capitalized Software, net 4,560 6,042
Goodwill 5,809 5,809
Other Intangibles, net 871 1,288
Non-current Assets 48 67
Total Assets $65,072 $59,657
Accounts Payable $543 $275
Other Current Liabilities 3,260 5,680
Due to ASI 639 -
Deferred Revenues 12,622 11,350
Current Liabilities 17,064 17,305
Deferred Tax Liability 1,620 1,940
Shareholders' Equity 46,388 40,412
Total Liabilities & Shareholders'
Equity $65,072 $59,657
SOURCE Logility, Inc.
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Related links:
http://www.logility.com
http://www.prnewswire.com/comp/120967.html /
CONTACT:
Financial Information, Vincent C. Klinges,
Chief Financial Officer of Logility, Inc., +1-404-264-5477
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