Operating Earnings Increase 49% driven by 11% Growth in Revenues
ATLANTA, Dec. 6 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq:
LGTY), a leading supplier of collaborative solutions to optimize the supply
chain, today announced financial results for the second quarter of fiscal
year 2008.
Key Second quarter financial highlights include:
-- Total revenues for the quarter ended October 31, 2007 were $11.1
million, an increase of 11% over the second quarter of fiscal 2007;
-- Software license fees for the quarter ended October 31, 2007 were $3.4
million, an increase of 2% over the second quarter of fiscal 2007;
-- Services and other revenues for the quarter ended October 31, 2007 were
$2.0 million, an increase of 28% over the second quarter of fiscal
2007;
-- Maintenance revenues for the quarter ended October 31, 2007 were $5.7
million, an increase of 12% over the second quarter of fiscal 2007; and
-- Operating earnings for the quarter ended October 31, 2007 were $2.2
million, an increase of 49% compared to operating earnings of $1.5
million for the second quarter of fiscal 2007.
GAAP net earnings were $1.7 million or $0.13 earnings per fully diluted
share, an increase of 50% for the second quarter of fiscal 2008 compared to
net earnings of $1.1 million or $0.08 earnings per fully diluted share for
the second quarter of fiscal 2007. Adjusted net earnings, which exclude
stock option compensation expense and acquisition-related amortization of
intangibles expense were $1.8 million or $0.14 earnings per fully diluted
share for the quarter ended October 31, 2007, compared to adjusted net
earnings of $1.3 million or $0.10 earnings per fully diluted share for the
same period last year.
Total revenues for the six months ended October 31, 2007 were $23.1
million or an 18% increase compared to the comparable period last year.
Software license fees for the six months were $8.1 million or a 22%
increase compared to the same period last year. Services and other revenues
were $4.1 million or a 35% increase compared to the same period last year.
Maintenance revenues were $11.0 million or a 10% increase compared to the
same period last year. For the six months ended October 31, 2007, the
Company reported operating earnings of approximately $5.2 million or a 91%
increase compared to operating earnings of $2.7 million for the same period
last year.
GAAP net earnings were approximately $3.5 million or $0.26 per fully
diluted share for the six months ended October 31, 2007 compared to net
earnings of $2.0 million or $0.15 per fully diluted share for the same
period last year. Adjusted net earnings, which for the current period
exclude stock option compensation expense, acquisition-related amortization
of intangibles expense and a non-cash tax valuation adjustment, were $4.2
million or $0.31 earnings per fully diluted share for the six months ended
October 31, 2007 compared to net earnings of $2.4 million or $0.18 earnings
per fully diluted share the same period last year, which exclude stock
option compensation expense 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 $39.7 million as of October 31, 2007.
This is approximately a $3.5 million sequential increase in cash and
investments compared to July 31, 2007 and approximately a $9.9 million
increase compared to October 31, 2006.
"We are pleased with Logility's performance during the quarter, adding
24 new customers, growing revenues and increasing operating earnings by 49%
compared to the second quarter of fiscal year 2007," said J. Michael
Edenfield, Logility president and chief executive officer. "Our
year-to-date financial performance has also been strong with double-digit
growth in all revenue streams and 91% growth in operating earnings. Our
industry-leading solutions, deep domain expertise, strong customer base and
ability to deploy quickly, combined with our continued financial strength
and organizational stability, provide a solid foundation upon which
Logility will continue to deliver innovation and value for our customers."
"To remain competitive in today's global market, companies must become
increasingly demand-driven and trim inefficiencies from their
manufacturing, distribution and transportation operations," continued
Edenfield. "Logility provides supply chain solutions that give small,
medium, large and Fortune 500 companies the visibility they need to
overcome global supply chain challenges, reduce costs, improve service and
streamline sales and operations planning (S&OP)."
Highlights for the second quarter of fiscal 2008 include:
Customers:
-- Notable new and existing customers placing orders with Logility in the
second quarter include: Atek Medical, CooperVision, Cypress Medical,
Henkel North America, Interface Modernform, Nike, PPG Refinish, Premier
Farnell, Electrolux, SanMar Corporation, Stiefel Laboratories, and
Whatman International.
-- During the quarter, software license agreements were signed with
customers located in 12 countries including; Australia, Brazil, China,
France, Germany, Italy, Malaysia, South Africa, Switzerland, Thailand,
the United Kingdom, and the United States.
-- Logility customer Intertape Polymer Group (IPG) was featured along with
Logility in an APICS webcast "Forecasting a Profitable Supply Chain".
The webcast focused on how companies can improve forecast accuracy to
increase supply chain profitability and discussed how IPG improved
forecast accuracy, accelerated inventory turns and increased
profitability with the help of Logility Voyager Solutions. "Forecasting
a Profitable Supply Chain" was also a featured presentation at the
APICS national conference held October 21-23, 2007.
-- Logility's Supply Chain Power Hour "Buckle Up Transportation Savings"
was the latest webcast in Logility's popular supply chain educational
series. The webcast featured Logility customer Rockline Industries and
Ian Hobkirk, senior analyst, logistics, AberdeenGroup who provided
participants with the latest insight on centralizing transportation
management to reduce costs and improve overall supply chain
performance.
-- Logility and Shaw Industries were featured in an APICS webcast on Sales
and Operations Planning. The webcast, "S&OP: Turning Blame into Gain",
focused on how companies can compete more effectively by synchronizing
corporate planning processes with an integrated S&OP planning solution.
Products and Technology:
-- Demand Management, a wholly-owned subsidiary of Logility and a global
resource for managing the supply chain, announced the addition of
service parts management capabilities to its replenishment software
solution. These capabilities automate the process of planning and
aligning service parts inventories, resources, and processes to ensure
optimal customer service and response with minimal risk and cost.
-- Logility announced its new Carrier On-Boarding Service to accelerate
implementations of Voyager Transportation Planning and Management. The
new Carrier Portal, EDI and Carrier On-boarding capabilities streamline
the business processes and communication with carriers and further
accelerates rapid ROI by enabling visibility into loads, tenders, bids,
shipment status information and freight payment.
-- Logility was named to Software Magazine's annual Software 500, a
revenue-based ranking of the world's largest software and services
suppliers. Logility has been consistently ranked in the list for more
than five years and has steadily climbed in position as a result of the
Company's continued growth in the supply chain management software
market.
About Logility
With more than 1,240 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, Brown
Shoe Company, 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)
Second Quarter Ended Six Months Ended
October 31, October 31,
Pct Pct
2007 2006 Chg. 2007 2006 Chg.
Revenues:
License $3,399 $3,343 2% $8,076 $6,644 22%
Services & other 2,039 1,587 28% 4,051 3,003 35%
Maintenance 5,696 5,089 12% 10,971 9,966 10%
Total Revenues 11,134 10,019 11% 23,098 19,613 18%
Cost of Revenues:
License 1,520 1,497 2% 3,154 2,874 10%
Services & other 1,023 837 22% 2,045 1,691 21%
Maintenance 1,267 1,220 4% 2,347 2,446 (4%)
Total Cost of Revenues 3,810 3,554 7% 7,546 7,011 8%
Gross Margin 7,324 6,465 13% 15,552 12,602 23%
Operating expenses:
Research and development 1,948 1,762 11% 3,825 3,523 9%
Less: capitalized
development (630) (587) 7% (1,155) (1,183) (2%)
Sales and marketing 2,426 2,426 0% 4,878 4,932 (1%)
General and administrative 1,293 1,297 0% 2,631 2,439 8%
Acquisition related
amortization of intangibles 87 87 0% 174 175 (1%)
Total Operating Expenses 5,124 4,985 3% 10,353 9,886 5%
Operating Earnings 2,200 1,480 49% 5,199 2,716 91%
Interest Income & Other, Net 504 427 18% 913 770 19%
Earnings Before Income Taxes 2,704 1,907 42% 6,112 3,486 75%
Income Tax Expense 1,031 792 30% 2,593 1,448 79%
Net Earnings $1,673 $1,115 50% $3,519 $2,038 73%
Earnings per common share:
Earnings Per Common Share -
Basic $0.13 $0.09 44% $0.27 $0.16 69%
Earnings Per Common Share -
Diluted $0.13 $0.08 63% $0.26 $0.15 73%
Weighted Average Number of
Common Shares:
Basic 12,953 12,896 12,943 12,896
Diluted 13,307 13,232 13,343 13,253
Reconciliation of Adjusted Net
Earnings:
GAAP Net Earnings $1,673 $1,115 $3,519 $2,038
Acquisition related
amortization of
intangibles(1) 87 87 174 175
Stock-based compensation (1) 89 105 177 205
Tax valuation adjustment (non-
cash) - - 283 -
Adjusted net earnings $1,849 $1,307 41% $4,153 $2,418 72%
Adjusted Net Earnings per
Share - Diluted $0.14 $0.10 40% $0.31 $0.18 72%
(1) - Not income tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
October 31, April 30,
2007 2007
Cash and Short-term investments $39,672 $32,316
Accounts Receivable:
Billed 4,978 7,764
Unbilled 1,361 1,412
Total Accounts Receivable, net 6,339 9,176
Deferred Tax Assets 729 1,361
Due from ASI 173 1,167
Prepaids & Other Current Assets 2,126 1,995
Current Assets 49,039 46,015
PP&E, net 447 436
Capitalized Software, net 5,921 6,042
Goodwill 5,809 5,809
Other Intangibles, net 1,058 1,288
Non-current Assets 67 67
Total Assets $62,341 $59,657
Accounts Payable $416 $275
Other Current Liabilities 4,380 5,680
Deferred Revenues 10,840 11,350
Current Liabilities 15,636 17,305
Deferred Income Taxes 2,095 1,940
Shareholders' Equity 44,610 40,412
Total Liabilities &
Shareholders' Equity $62,341 $59,657
SOURCE Logility, Inc.
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Related links:
http://www.logility.com
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CONTACT:
Vincent C. Klinges, Chief Financial Officer
of Logility, Inc., +1-404-264-5477
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