Losses down for Manugistics, profits up for Lawson
Rockville, MD September 26, 2003 Supply chain solution provider Manugistics Group this week reported a narrower loss for its latest fiscal quarter, as lower expenses compensated for a dip in revenues, and the company's chief expressed optimism about the quarters to come.
Meanwhile, enterprise solution provider Lawson Software reported a slight uptick in revenues as the company turned to the black against a loss for the year-ago period.
Manugistics, which has not reported a profitable quarter since April 2002, said that its revenues for its fiscal second quarter, ended August 31, came in at $59.7 million, down from $69.9 million in the same period last year. Software revenue, viewed as an indicator of future income, was $17.8 million, down 2 percent from $18.1 million in the prior year quarter.
The company's net loss fell to $8 million, down from $47.7 million for the year-ago period. In addition, the company reported adjusted operating income of $1.2 million, compared to an adjusted operating loss of $11.2 million in the prior year quarter.
Manugistics' cash and marketable securities balance was approximately $144 million as of August 31.
"We are pleased with a number of positive aspects in the second quarter, most importantly meeting our financial performance objectives," said Gregory Owens, Manugistics' chairman and CEO. "Other positive aspects of the quarter include nearly doubling the number of software license transactions closed as compared to our first quarter, increased business with new customers, a significant contribution from our international operations and positive cash flows from operations."
Looking ahead, Owens expressed the hope that the company's results would continue to improve. "We continue to be optimistic about future quarters and, assuming the economy and competitive environment remain stable, we expect to see sequential increases for the remainder of the fiscal year," he said.
Elsewhere, St. Paul, Minn.-based Lawson Software, reporting its fiscal 2004 first quarter results this week, saw a return to profitability compared to the year-ago period, as total revenues inched up and software license income surged.
The company said that its revenues ticked up to $88.0 million in the latest period, compared to $87.4 million for its fiscal 2003 first quarter. License fee revenues increased 25 percent to $22.7 million in the latest quarter, compared with $18.1 million in the fiscal 2003 first quarter. Services revenues, on the other hand, declined to $65.3 million in the 2004 first quarter, compared to $69.3 million in the year-ago period.
On a generally accepted accounting principles (GAAP) basis, the company posted net income of $3.2 million in the most recent quarter, compared with a net loss of $1.9 million, or a net loss of $0.02 per diluted share, for the fiscal 2003 first quarter.
The company's cash, cash equivalents and marketable securities were $255.2 million at August 31, down slightly from $260.5 million at May 31.
"We continued our momentum from our fourth quarter fiscal 2003 and delivered strong performance in our first quarter with solid execution of our strategy," said Jay Coughlan, Lawson president and CEO. "We witnessed the return of year-over-year license revenue growth, driven by a strong quarter from our healthcare vertical."