Record Revenue and Operating Earnings driven by Strong Growth in License
Fees
ATLANTA, June 25 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq:
LGTY), a leading supplier of collaborative solutions to optimize the supply
chain, today announced preliminary financial results for the fourth quarter
and fiscal year 2007.
Key fourth quarter financial highlights include:
* Total revenues for the quarter ended April 30, 2007 were a record $12.7
million, an increase of 26% over the fourth quarter of fiscal 2006 and
an increase of 13% compared to the prior quarter ended
January 31, 2007;
* Software license fees for the quarter ended April 30, 2007 were a
record $5.7 million, a 48% increase over the fourth quarter of fiscal
2006 and an increase of 46% compared to the prior quarter ended
January 31, 2007;
* Services and other revenues for the quarter ended April 30, 2007 were
$1.9 million, an increase of 17% over the fourth quarter of fiscal 2006
and an increase of 9% compared to the prior quarter ended
January 31, 2007;
* Maintenance revenues for the quarter ended April 30, 2007 were $5.1
million, an increase of 12% over the fourth quarter of fiscal 2006 and
decreased 9% compared to the quarter ended January 31, 2007;
* Operating earnings for the quarter ended April 30, 2007 were a record
$3.0 million, an increase of 73% compared to operating earnings of $1.8
million for the fourth quarter of fiscal 2006; and
* Pretax earnings for the quarter ended April 30, 2007 were $3.4 million,
an increase of 84% compared to pretax earnings of $1.9 million for the
fourth quarter of fiscal 2006.
GAAP net earnings were $1.9 million or $0.14 earnings per fully diluted
share for the fourth quarter of fiscal 2007 compared to net earnings of
$1.6 million or $0.12 earnings per fully diluted share for the fourth
quarter of fiscal 2006. Adjusted net earnings, which exclude stock option
compensation and acquisition related amortization of intangibles expense
for the quarter ended April 30, 2007 were $2.1 million or $0.16 earnings
per fully diluted share, compared to adjusted net earnings for the quarter
ended April 30, 2006 of $1.4 million or $0.11 earnings per fully diluted
share for the same period last year, which included a tax expense related
to an adjustment to a normal effective income tax rate and excluded
acquisition related amortization of intangibles expense and a write-down of
minority investment.
Key fiscal year 2007 financial highlights include:
* Total revenues for the year ended April 30, 2007 were a record $43.6
million, an increase of 17% compared to last year;
* Software license fees for the year ended April 30, 2007 were $16.2
million, an increase of 17% compared to last year;
* Services and other revenues for the year ended April 30, 2007 were $6.7
million, an increase of 16% compared to last year;
* Maintenance revenues were a record $20.7 million for the year ended
April 30, 2007 or a 17% increase compared to last year; and
* Operating earnings for the year ended April 30, 2007 were a record $8.4
million, an increase of 41% compared to operating earnings of $6.0
million for last year.
GAAP net earnings were approximately $5.9 million or $0.45 per fully
diluted share for the year ended April 30, 2007 compared to net earnings of
$8.0 million or $0.60 per fully diluted share for last year. Adjusted net
earnings year to date as of April 30, 2007, which excludes stock option
compensation expense and acquisition related amortization of intangibles,
were $6.6 million or $0.50 earnings per fully diluted share compared to
adjusted net earnings of $4.4 million or $0.33 earnings per fully diluted
share last year, which includes an adjustment to a normal effective income
tax rate 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 $32.3 million as of April 30, 2007.
This is approximately a $0.4 million increase in cash and investments
compared to January 31, 2007 and approximately a $5.4 million increase
compared to April 30, 2006.
"Logility's performance during the fourth quarter and fiscal year 2007
was outstanding. In the fourth quarter, the Company delivered all-time
record revenues, license fees and operating earnings," said J. Michael
Edenfield, Logility president and chief executive officer. "We continue to
serve an increasingly global marketplace and signed license agreements
during the quarter with both new and existing customers located in 10
countries."
"Fiscal year 2007 marks a new milestone for Logility with record
revenues and operating earnings," continued Edenfield. "Our two-brand
product strategy has been extremely effective and enables us to meet the
needs of small, medium, large and Fortune 1000 companies. Across both the
Demand Solutions(R) and Logility Voyager Solutions(TM) brands, we welcomed
a record 111 new customers and signed agreements with both new and existing
customers located in 25 countries during the fiscal year."
Highlights for the fourth quarter and fiscal year 2007 include:
Customers:
* During the year, Logility signed a record 111 new customers and
extended its relationship with an impressive number of existing
customers. Software license agreements were signed with both new and
existing customers located in 25 countries.
* Notable new and existing customers placing orders with Logility in the
fourth quarter include: 3M South Africa, Arla Foods, Armour Eckrich,
Continental Mills, Cooper Industries, Etude et Production Schlumberger,
Lance, Inc., Siemens Medical Solutions, Targus, The Stanley Works,
Verizon Wireless, VF Intimates, Wacoal, and Warnaco.
* The Logility Connections 2007: Supply Chain Power Plays conference was
held in Atlanta, GA on March 21-23. The conference offered attendees
the opportunity to hear best practices from industry peers, learn
valuable tips for maximizing return on investment, and gain insight
from leading supply chain experts that will provide them with a
competitive advantage by improving supply chain visibility and agility.
* Logility customer Nutra Manufacturing received the 2007 Sailing to New
Heights with Logility Award for supply chain excellence. The award, the
highest honor given annually to a Logility customer, was presented to
Nutra for their success in improving manufacturing planning processes.
With the support of Logility Voyager Manufacturing Planning, Nutra
gained service level improvements and an inventory reduction of 13%,
equivalent to 16% improvement in inventory turns and millions in
savings.
* The 2007 Logility Leadership Awards were presented to Logility
customers, Associated Grocers of Florida, A. O. Smith Water Products
Company, Brown Shoe Company and Cole-Parmer Instrument, at the
Connections 2007 conference. The annual award program recognizes a
select group of companies who have been the most innovative in their
efforts to develop and implement collaborative supply chain processes
that significantly improve operational performance through the
deployment of Logility Voyager Solutions(TM).
Products and Technology:
* Logility continued to provide thought leadership to the manufacturing
community with the Spring installment of its Supply Chain Power Hour
Webcast series, "Close the Gap Between Supply and Demand." The webcast
provided participants with the latest insight on building a
collaborative sales and operations planning (S&OP) process to
continuously balance dynamic demand, supply, distribution and financial
plans to achieve corporate objectives. Logility also participated in a
webcast series jointly produced with the Institute of Business
Forecasting (IBF), which is recognized worldwide as a full-service
provider of forecasting, demand planning, supply chain research and
education.
* Logility was named a 2007 Top 100 Logistics IT Provider by Inbound
Logistics magazine for a record 10th consecutive year. The selection
process included comparison of more than 500 logistics IT providers and
their ability to deliver solutions to meet the diverse needs of the
Inbound Logistics' readers.
* Logility president and CEO, J. Michael Edenfield, was recognized in the
top 10 of Georgia's Top Performing CEOs by Atlanta Business Chronicle.
The list of 25 Top Performing CEOs ranked CEOs of Georgia public
companies that generated the highest shareholder return during a recent
five-year period, 2000-2001 to 2005-2006.
About Logility
With more than 1,150 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)
Fourth Quarter Ended Twelve Months Ended
April 30, April 30,
Pct Pct
2007 2006 Chg. 2007 2006 Chg.
Revenues:
License $5,698 $3,863 48% $16,242 $13,889 17%
Services & other 1,940 1,661 17% 6,715 5,796 16%
Maintenance 5,102 4,551 12% 20,691 17,618 17%
Total Revenues 12,740 10,075 26% 43,648 37,303 17%
Cost of Revenues:
License 1,672 1,213 38% 5,864 3,783 55%
Services & other 1,126 1,008 12% 3,697 3,585 3%
Maintenance 1,183 1,042 14% 4,858 4,134 18%
Total Cost of Revenues 3,981 3,263 22% 14,419 11,502 25%
Gross Margin 8,759 6,812 29% 29,229 25,801 13%
Operating expenses:
Research and development 2,251 1,987 13% 7,642 7,170 7%
Less: capitalized
development (586) (652) (10%) (2,264) (2,423) (7%)
Sales and marketing 2,468 2,601 (5%) 9,778 10,123 (3%)
General and administrative 1,496 1,029 45% 5,317 4,622 15%
Acquisition related
amortization of
intangibles 87 87 0% 350 350 0%
Total Operating Expenses 5,716 5,052 13% 20,823 19,842 5%
Operating Earnings 3,043 1,760 73% 8,406 5,959 41%
Interest Income & Other,
Net 377 94 301% 1,603 467 243%
Income Before Income Taxes 3,420 1,854 84% 10,009 6,426 56%
Income Tax
(Expense)/Benefit (1,532) (297) 416% (4,091) 1,587 nm
Net Earnings $1,888 $1,557 21% $5,918 $8,013 (26%)
Earnings per common share:
Earnings Per Common Share
- Basic $0.15 $0.12 25% $0.46 $0.63 (27%)
Earnings Per Common Share
- Diluted $0.14 $0.12 17% $0.45 $0.60 (25%)
Weighted Average Number of
Common Shares:
Basic 12,906 12,872 12,899 12,817
Diluted 13,225 13,178 13,245 13,459
Reconciliation of Adjusted
Net Earnings:
GAAP Net Earnings $1,888 $1,557 $5,918 $8,013
Acquisition related
amortization of
intangibles(1) 87 87 350 350
Stock option expense(1) 89 - 379 -
Write-down of minority
investment(1) - 121 - 281
Excludes Income tax benefit - - - (1,587)
Includes normalized Income
tax expense - (350) - (2,667)
Adjusted net earnings $2,064 $1,415 46% $6,647 $4,390 51%
Adjusted Net Earnings per
Share $0.16 $0.11 45% $0.50 $0.33 52%
nm- not meaningful
(1) - Not income tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
April 30,
2007 2006
Cash and Short-term investments $32,316 $26,460
Accounts Receivable:
Billed 7,764 5,308
Unbilled 1,412 1,777
Total Accounts Receivable, net 9,176 7,085
Deferred Tax Assets 1,361 2,922
Due from ASI, Inc. 1,052 -
Prepaids & Other Current Assets 1,995 1,673
Current Assets 45,900 38,140
Investments - noncurrent - 499
PP&E,net 436 457
Capitalized Software, net 6,042 6,382
Goodwill 5,809 5,809
Other Intangibles, net 1,288 1,688
Non-current Assets 67 99
Total Assets $59,542 $53,074
Accounts Payable $275 $346
Other Current Liabilities 5,641 4,543
Deferred Revenues 11,350 10,534
Deferred Income Taxes - Due to ASI - 2,087
Current Liabilities 17,266 17,510
Deferred Income Taxes 1,940 316
Deferred Income Taxes - Due to ASI - 1,358
Shareholders' Equity 40,336 33,890
Total Liabilities & Shareholders' Equity $59,542 $53,074
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 of
Logility, Inc. +1-404-264-5477
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