Company Reports 13th Consecutive Quarter of Profitability
ATLANTA, Sept. 4 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq:
LGTY), a leading supplier of collaborative solutions to optimize the supply
chain, today announced financial results for the first quarter of fiscal
year 2009, achieving 13 consecutive quarters of profitability.
Key first quarter financial highlights include:
-- Total revenues for the quarter ended July 31, 2008 were $9.4
million, a decrease of 22% over the first quarter of fiscal 2008;
-- Software license fees for the quarter ended July 31, 2008 were $2.0
million, a decrease of 57% over the first quarter of fiscal 2008;
-- Services and other revenues for the quarter ended July 31, 2008 were
$1.6 million, a decrease of 22% over the first quarter of fiscal 2008;
-- Maintenance revenues for the quarter ended July 31, 2008 were $5.8
million, an increase of 10% over the first quarter of fiscal 2008; and
-- Operating earnings for the quarter ended July 31, 2008 were
approximately $986,000, a decrease of 67% compared to operating earnings
for the first quarter of fiscal 2008.
GAAP (Generally Accepted Accounting Principles) net earnings were
$694,000 or $0.05 earnings per fully diluted share for the first quarter of
fiscal 2009 compared to net earnings of $1.8 million or $0.14 earnings per
fully diluted share for the first quarter of fiscal 2008. Adjusted net
earnings, which exclude stock option compensation expense and
acquisition-related amortization of intangibles expense, for the quarter
ended July 31, 2008 were $817,000 or $0.06 earnings per fully diluted share
compared to adjusted net earnings of $2.3 million or $0.17 earnings per
fully diluted share for 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 $44.4 million as of July 31, 2008.
This is approximately a $1.7 million sequential increase in cash and
investments compared to April 30, 2008 and approximately a $8.2 million
increase compared to July 31, 2007. During the quarter, the Company
repurchased 39,620 of its common shares for approximately $297,000 under
its authorized stock repurchase program.
"Although disappointed with license fee revenues for the quarter, we
are pleased with Logility's overall performance, adding 23 new customers
and contributing a significant sequential increase in cash of $1.7 million
over the prior quarter," noted Mike Edenfield, Logility president and CEO.
"With the completion of our 13th consecutive quarter of profitability, I
remain confident in our solutions, people, business strategy and ability to
compete and win."
"With the current global economy, businesses are looking to increase
visibility, lower operating costs and respond quickly to dynamic market
conditions," continued Edenfield. "Leaders are investing in supply chain
technology to accelerate the sales and operations planning (S&OP) process,
streamline new product introductions, and harness the benefits of a global
marketplace to increase profits. We firmly believe both our Demand
Solutions(R) and Logility Voyager Solutions(TM) brands offer innovative,
proven solutions to help companies address these challenges during both
prosperous and lean economic environments."
Highlights for the first quarter of fiscal 2009 include:
Customers & Channels:
-- Notable new and existing customers placing orders with Logility in
the first quarter include: Galderma Laboratories, Meyer Corporation, RG
Brands, Roomstore Furniture, Siemens Healthcare Diagnostics, Vaughan Foods
and Westcon Group North America.
-- During the quarter, software license agreements were signed with
customers located in six countries including: Australia, Canada, Japan,
Kazakhstan, the Netherlands and the United States.
-- Logility held the Connections 2008: Saddle up for Supply Chain
Success conference in San Antonio, TX. The conference presented the latest
trends, technologies and competitive strategies for supply chain
professionals and provided interactive educational opportunities and
networking for Logility customers with industry leaders and analysts.
-- Logility announced that its customer Intertape Polymer Group
received the prestigious 2008 Sailing to New Heights with Logility Award
for supply chain excellence. Intertape Polymer Group implemented Logility
Voyager Solutions to increase visibility into customer demand and help
build a more efficient supply chain. As a result, Intertape Polymer has
reduced total inventory by $40 million year-over-year, improved fill rates
from less than 70% to 95%, increased forecast accuracy from 56% to 86%,
built stronger internal collaboration and achieved higher customer service
levels.
-- Logility announced the 2008 Logility Leadership Award recipients:
A.O. Smith Water Products, Basic American Foods, Malt-O-Meal and Shaw
Industries. The annual award program recognizes a select group of companies
who have been innovative in their efforts to develop and implement
collaborative supply chain processes that significantly improve operational
performance through the deployment of Logility Voyager Solutions. This
year's winners demonstrated success in building collaboration and
visibility within their supply chains which has resulted in tangible
business benefits including inventory reduction, improved forecast accuracy
and higher customer service levels.
-- Managing Automation magazine honored Logility customer Intertape
Polymer Group with their High Achiever Award, the highest recognition given
for the Supply Network Mastery category at the 2008 Progressive
Manufacturing Awards. Intertape Polymer Group was one of 50 manufacturers
recognized as a Progressive Manufacturer by Managing Automation and one of
eight to receive a top award in a category of distinction. Intertape
Polymer Group was awarded the High Achiever Award for successfully
restructuring their supply chain processes to alleviate challenges that
arose as a result of rapid growth through acquisitions. Intertape Polymer
Group's new supply chain structure, supported by Logility Voyager
Solutions, has resulted in increased fill rates, higher forecast accuracy
and reduced inventory.
Technology and Company:
-- Demand Management, Inc., a wholly-owned subsidiary of Logility,
announced it has fulfilled the requirements for the Microsoft Certified
Partner designation with the ISV Competency. The Company's popular Demand
Solutions(R) forecasting and inventory planning products have successfully
passed the Software Solution Test for Microsoft Dynamics NAV 5.0 and have
met the ISV competency requirements.
-- Fortune Small Business included Logility in its annual listing of
the Fastest-Growing Small Public Companies in America for the second
consecutive year. The FSB 100 ranked Logility in the Top 25 of the list of
100 companies for 2008. Companies are ranked based on growth in earnings
per share, revenues and stock performance over the past three years.
According to Fortune Small Business, more than half of the companies that
were listed in 2007 did not make the 2008 list. Logility was ranked for the
first time in 2007 at 70 and this year increased its ranking to 24.
-- Logility was named to Aberdeen Group's listing of the Top 100 Most
Influential Technology Vendors recently showcased in the Aberdeen Annual
State of the Market Report. The Top 100 recognizes the technology vendors
that have excelled at providing value to the business community. Logility
was selected for inclusion in the list of software, hardware and service
providers that featured several well-known global brands such as Microsoft,
IBM, Dell and Logility customer Verizon Wireless. Aberdeen Group's
selection of the Top 100 was based on five years of Aberdeen's market
research which included data gathered from over 4,600 enterprises, and
additional insights from 35,000 senior-level interviews as well as
Aberdeen's 2.5 million readers.
-- Logility was named a 2008 Great Supply Chain Partner by Global
Logistics & Supply Chain Strategies (GL&SCS) magazine. It is the fifth year
since the award's inception in 2003 that Logility has received the
prestigious recognition for its success in helping companies solve supply
chain challenges. This year nearly 1,500 companies were nominated and
included various types of supply chain vendors across the globe. Only 100
vendors were named a 2008 Great Supply Chain Partner.
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: 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)
First Quarter Ended
July 31,
Pct
2008 2007 Chg.
Revenues:
License $2,009 $4,677 (57%)
Services & other 1,569 2,013 (22%)
Maintenance 5,810 5,275 10%
Total Revenues 9,388 11,965 (22%)
Cost of Revenues:
License 1,252 1,634 (23%)
Services & other 902 1,022 (12%)
Maintenance 1,191 1,080 10%
Total Cost of Revenues 3,345 3,736 (10%)
Gross Margin 6,043 8,229 (27%)
Operating expenses:
Research and development 1,772 1,877 (6%)
Less: capitalized development (507) (525) (3%)
Sales and marketing 2,475 2,452 1%
General and administrative 1,229 1,337 (8%)
Acquisition related amortization of
intangibles 88 88 0%
Total Operating Expenses 5,057 5,229 (3%)
Operating Earnings 986 3,000 (67%)
Interest Income & Other, Net 156 409 (62%)
Earnings Before Income Taxes 1,142 3,409 (67%)
Income Tax Expense 448 1,562 (71%)
Net Earnings $694 $1,847 (62%)
Earnings per common share:
Basic $0.05 $0.14 (64%)
Diluted $0.05 $0.14 (64%)
Weighted Average Number of Common
Shares:
Basic 12,860 12,932
Diluted 13,091 13,315
Reconciliation of Adjusted Net Earnings:
Net Earnings $694 $1,847
Acquisition related amortization of
intangibles(1) 53 53
Stock-based compensation (1) 70 89
Tax valuation adjustment (non-cash) - 283
Adjusted net earnings $817 $2,272 (64%)
Adjusted Net Earnings per Share -
Diluted $0.06 $0.17 (65%)
(1) - Tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
July 31, April 30,
2008 2008
Cash and Short-term investments $44,429 $42,732
Accounts Receivable:
Billed 4,551 6,897
Unbilled 1,515 1,424
Total Accounts Receivable, net 6,066 8,321
Deferred Tax Assets 73 74
Prepaids & Other Current Assets 2,252 2,256
Current Assets 52,820 53,383
PP&E, net 377 401
Capitalized Software, net 4,512 4,560
Goodwill 5,809 5,809
Other Intangibles, net 777 871
Non-current Assets 40 48
Total Assets $64,335 $65,072
Accounts Payable $249 $543
Accrued Compensation and Related costs 772 1,282
Accrued Reseller Commissions 1,235 1,013
Other Current Liabilities 737 965
Due to American Software Inc. 756 638
Deferred Revenues 11,766 12,622
Current Liabilities 15,515 17,063
Deferred Tax Liability 1,616 1,620
Shareholders' Equity 47,204 46,389
Total Liabilities & Shareholders' Equity $64,335 $65,072
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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