Rockville, MD - April 2, 2002 - Supply chain solution provider Manugistics Group reported a larger loss for its latest fiscal year versus the previous year, but a marked increase in software revenues had Wall Street buzzing that Manu was bucking the trend in a shaky software market.
The company reported record annual revenues of $310 million for fiscal 2002, ended February 28, an increase of 16 percent over the previous year. The loss for the latest year came in at $17.4 million, compared to a profit of $8.0 million for the previous year.
But the company also reported that its software license revenue increased 70 percent in the fourth quarter, to $38 million, versus the third quarter, helping the company eke out a fourth quarter profit of $189,000, against a $10.1 million loss in the third quarter.
The $38 million was down from last year's fourth quarter figure of $49 million, but Wall Street still reacted positively to the news, sending Manugistics stock higher. Analysts pointed to Manugistics customer base, which includes sectors such as consumer goods and retailers that have not been as hard hit by the recent economic downturn, as the reason for the company's strength compared to its rivals.
Manugistics' fourth quarter total revenue increased to $80.6 million, a decrease of 10 percent from the same quarter in the prior year but up 17 percent against the third quarter figure.
"We are very pleased to report positive adjusted operating income in our first full quarter following the September tragedies," said Greg Owens, Manugistics¹ chairman and CEO, in a statement. "I strongly believe that by effectively managing our business, we were able to power through the economy's challenges and be one of the few enterprise applications software companies that was able to grow our business this year."
Raj Rajaji, Manugistics' chief financial officer, reported that the company's cash on hand had increased $9 million, to $233 million, and deferred revenue increased $3 million, to $44 million. In addition, the company's average software sales price rebounded more than 40 percent, to $1.2 million, according to Rajaji.