Operating Earnings Grow 143% Driven by 42% Growth in License Fees
ATLANTA, Sept. 6 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq:
LGTY), a leading supplier of collaborative solutions to optimize the supply
chain, today announced preliminary financial results for the first quarter
of fiscal year 2008.
Key first quarter financial highlights include:
-- Total revenues for the quarter ended July 31, 2007 were $12.0 million,
an increase of 25% over the first quarter of fiscal 2007;
-- Software license fees for the quarter ended July 31, 2007 were $4.7
million, a 42% increase over the first quarter of fiscal 2007;
-- Services and other revenues for the quarter ended July 31, 2007 were
$2.0 million, an increase of 42% over the first quarter of fiscal 2007;
-- Maintenance revenues for the quarter ended July 31, 2007 were $5.3
million, an increase of 8% over the first quarter of fiscal 2007;
-- Operating earnings for the quarter ended July 31, 2007 were $3.0
million, an increase of 143% compared to operating earnings of $1.2
million for the first quarter of fiscal 2007; and
-- Pretax earnings for the quarter ended July 31, 2007 were $3.4 million,
an increase of 116% compared to pretax earnings of $1.6 million for the
first quarter of fiscal 2007.
GAAP net earnings were $1.8 million or $0.14 earnings per fully diluted
share for the first quarter of fiscal 2008 compared to net earnings of
$923,000 or $0.07 earnings per fully diluted share for the first quarter of
fiscal 2007. Adjusted net earnings, which exclude stock-based compensation,
acquisition related amortization of intangibles expense and a non-cash tax
valuation adjustment for the quarter ended July 31, 2007 were $2.3 million
or $0.17 earnings per fully diluted share, compared to adjusted net
earnings for the quarter ended July 31, 2006 of $1.1 million or $0.08
earnings per fully diluted share for the same period last year which
exclude stock-based compensation and acquisition related amortization of
intangibles expense.
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 $36.2 million as of July 31, 2007.
This is approximately a $3.9 million increase in cash and investments
compared to April 30, 2007 and approximately a $7.7 million increase
compared to July 31, 2006. On June 28, 2007, the Company purchased 30,000
of its shares on the open market under the current authorized share buyback
program at a cost of approximately $337,800. There are 223,896 shares
remaining to purchase under the current authorized share buyback program.
"Logility achieved a great start to fiscal year 2008 and we are pleased
with the Company's strong performance during the first quarter," said J.
Michael Edenfield, Logility president and chief executive officer.
"Operating earnings increased an impressive 143% driven by 42% growth in
license fees with strong performance from both our Demand Solutions(R) and
Logility Voyager Solutions(TM) product suites."
"Leading companies are investing in supply chain technology to
accelerate the sales and operations planning (S&OP) processes, streamline
new product introductions, and harness the benefits of a global marketplace
to increase profits, and effectively manage both strategic and tactical
business plans," continued Edenfield. "Logility has long been recognized
for its industry leading supply chain solutions. And, we firmly believe
both our Demand Solutions and Logility Voyager Solutions brands offer
innovative, proven solutions to help our current and future customers
optimize and streamline their global supply chain operations while reducing
inventory and improving customer service."
The Company's strong performance was further recognized during the
quarter when Fortune Small Business magazine named Logility to its annual
listing of the Fastest-Growing Small Public Companies in America, the FSB
100. The seventh annual FSB 100 listing was compiled by Zacks Investment
Research, which ranked public companies with revenues of less that $200
million and a stock price of more than $1, based on their percentage growth
in earnings, revenue, and stock performance over the past three years.
Highlights for the first quarter of fiscal year 2008 include:
Customers:
* Notable new and existing customers placing orders with Logility in the
first quarter include: Alcoa Consumer Products, Berry Plastics
Corporation, Case New Holland (CNH) Australia, Johnson Diversey,
Johnson Controls, Markwins International, Parker Hannifin, Road Runner
Sports, Tesco Corporation, VeriFone, VM Sewing and VWR International.
* During the quarter, software license agreements were signed with
customers located in 13 countries including: Australia, Canada, China,
Egypt, France, Germany, Ghana, Ireland, Russia, Saudi Arabia, South
Africa, the United Kingdom, and the United States.
* Several Logility customers garnered prestigious recognition for their
supply chain achievements through the use of Logility Voyager
Solutions(TM) by industry-leading manufacturing and supply chain
publications during the quarter. The honors received by Logility
customers include:
-- Associated Grocers of Florida received a Supermarket News 2007
Technology Excellence Award. The winners of the fifth annual
Supermarket News (SN) Technology Excellence Awards included food
retailers and wholesalers that were able to show dramatic
improvements in their organizations through the innovative and
proactive use of information technology. Associated Grocers of
Florida received the award for the wholesaler category.
-- Smead Manufacturing was a recipient of Managing Automation
magazine's prestigious Progressive Manufacturing Award for
distinction in Supply Network Mastery and also received the Customer
Mastery High Achiever award.
-- McCain Foods received the Start-IT Technology and Business award and
Shaw Industries was honored as a Manufacturer of the Year Honorable
Mention at the 2007 Start-IT Technology and Business (T&B) Awards.
Technology and Company:
* The Supply Chain Power Hour "Reach Peak Production Efficiency, Gain
Flexibility" continued Logility's popular educational webcast series
providing the latest research and thought leadership on supply chain
topics to the manufacturing community. The webcast featured Logility
customer, Larry Morgan, senior director, operations planning at Nutra
Manufacturing and provided participants with insight on maximizing
production planning efficiency through accurate, flexible production
plans that optimize resource constraints.
* Logility was recognized as a Best All-Around Software Vendor in the
Apparel Market and received high rankings across five other categories-
overall satisfaction (the most heavily weighted), apparel market
knowledge, ROI, user buy-in/user friendliness and customer service-in
the second annual Apparel Magazine Software Scorecard. The 2007 Apparel
Software Scorecard ranks software providers based on survey response
from Apparel subscribers and other apparel companies invited to
participate in the survey. Of the approximately 160 apparel and retail-
specific software firms serving the apparel industry, only 50 qualified
for inclusion in the prestigious Scorecard report.
* Logility was named a 2007 Great Supply Chain Partner by Global
Logistics and Supply Chain Strategies (GL&SCS) magazine. The 2007 list
of GL&SCS Great Supply Chain Partners was the result of a six-month
poll in which the magazine asked logistics and supply chain
professionals to nominate vendors and service providers whose
technology, logistics, transportation or consulting solutions have made
a significant impact on their company's efficiency, customer service
and overall supply chain performance. For the 2007 list, GL&SCS
received more than 2,000 nominations from a broad range of companies on
five continents with more than 500 vendors across the supply chain
receiving nominations. The 100 companies that received the most
qualified nominations were selected for inclusion in this year's 2007
Great Supply Chain Partner list.
About Logility
With more than 1,200 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 (S&OP); 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, 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)
First Quarter Ended
July 31,
Pct
2007 2006 Chg.
Revenues:
License $4,677 $3,301 42%
Services & other 2,013 1,416 42%
Maintenance 5,275 4,877 8%
Total Revenues 11,965 9,594 25%
Cost of Revenues:
License 1,634 1,377 19%
Services & other 1,022 854 20%
Maintenance 1,080 1,226 (12%)
Total Cost of Revenues 3,736 3,457 8%
Gross Margin 8,229 6,137 34%
Operating expenses:
Research and development 1,877 1,761 7%
Less: capitalized development (525) (596) (12%)
Sales and marketing 2,452 2,506 (2%)
General and administrative 1,338 1,142 17%
Acquisition related amortization of
intangibles 87 88 (1%)
Total Operating Expenses 5,229 4,901 7%
Operating Earnings 3,000 1,236 143%
Interest Income & Other, Net 409 343 19%
Earnings Before Income Taxes 3,409 1,579 116%
Income Tax Expense (1,562) (656) 138%
Net Earnings $1,847 $923 100%
Earnings per common share:
Earnings Per Common Share - Basic $0.14 $0.07 100%
Earnings Per Common Share - Diluted $0.14 $0.07 100%
Weighted Average Number of Common
Shares:
Basic 12,932 12,896
Diluted 13,315 13,206
Reconciliation of Adjusted Net
Earnings:
GAAP Net Earnings $1,847 $923
Acquisition related amortization of
intangibles(1) 87 88
Stock-based compensation (1) 88 100
Tax valuation adjustment (non-cash) 283 -
Adjusted net earnings $2,305 $1,111 107%
Adjusted Net Earnings per Share -
Diluted $0.17 $0.08 113%
nm - not meaningful
(1) - Not income tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
July 31,
2007 2006
Cash and Short-term investments $36,219 $28,511
Accounts Receivable:
Billed 7,525 4,836
Unbilled 1,428 1,293
Total Accounts Receivable, net 8,953 6,129
Deferred Tax Assets 1,051 2,571
Due from ASI 751 -
Prepaids & Other Current Assets 1,676 1,819
Current Assets 48,650 39,030
PP&E, net 426 460
Capitalized Software, net 5,929 6,248
Goodwill 5,809 5,809
Other Intangibles, net 1,169 1,644
Non-current Assets 67 99
Total Assets $62,050 $53,290
Accounts Payable $389 $253
Other Current Liabilities 4,692 3,365
Deferred Revenues 12,224 10,557
Deferred Income Taxes - Due to ASI - 2,267
Current Liabilities 17,305 16,442
Deferred Income Taxes 2,197 540
Deferred Income Taxes - Due to ASI - 1,358
Shareholders' Equity 42,548 34,950
Total Liabilities &
Shareholders' Equity $62,050 $53,290
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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