Supply chain solution provider increases software revenues, lowers losses for latest reporting period
Rockville, MD — December 19, 2003 — Supply chain solutions provider Manugistics Group reported a smaller loss this week and improved operating results helped by an increase in software revenue in its fiscal third quarter, ended November 30.
The company reported a net loss of $19.8 million for the latest quarter, compared to a net loss of $26.0 million for the prior year quarter. The latest quarter results included $17.1 million in software revenue, up 21 percent from $14.1 million in the prior year quarter.
Total revenue for the latest quarter, which includes product support and services revenue, was $59.9 million, down 4 percent from $62.4 million in the prior year quarter.
The latest quarter results, under generally accepted accounting practices (GAAP), included various charges. Excluding those items, the company reported positive adjusted net income of $1.6 million for the third quarter, compared to an adjusted net loss of $12.5 million in the prior year quarter.
"We are pleased to report that we exceeded our operating performance objectives this quarter, and we are seeing healthy levels of business with both new and existing customers," said Gregory Owens, Manugistics' chairman and CEO, in a company statement. "We are also pleased to see more companies engaging in new demand and supply chain initiatives as evidenced by increased numbers of software license transactions and our first year-over-year growth in software revenue in over two years. Additionally, our international operations executed solidly, including significant new wins in the German and Chinese markets."
The company said it is continuing to adjust its cost structure and resource allocation to increase efficiencies, better serve customers and reduce excess office space. The company expects to incur a restructuring charge of approximately $7 million during the quarter ending February 29, 2004, as a result of reductions of office space, closing a product development facility and relocating employees to its headquarters in Rockville, Md.
Manugistics said it does not expect a significant change in employee headcount as a result of these actions.