Manhattan Associates Reports Profits

Supply chain execution specialist provides bright spot as earnings season winds down

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Atlanta  February 12, 2003  In a rare bright spot for the supply chain solutions market, Manhattan Associates this week reported a healthy profit along with fourth quarter and year-end results for 2002 that exceeded its 2001 figures.

For the quarter ended December 31, Manhattan, which provides supply chain execution solutions, reported total revenues of $45.6 million, up from $41.9 million for the same period of 2001. Net income for the just-ended quarter came in at $7.5 million, up from $2.5 million for the year-ago period.

Manhattan noted that this past quarter marked the thirteenth consecutive quarter in which it had met or exceeded financial analysts' estimates for the company's earnings per share performance.

For the year ended December 31, total revenues were a record $175.7 million, up from the $156.4 million that came in during 2001. Net income for 2002 was $25.2 million, against $16.2 million for the previous year.

As of the end of 2002, the company reported holding $121.9 million in cash and short-term investments, up 17 percent from the end of 2001.

In a statement on its earnings, Manhattan noted that in late September 2002 the United States Bankruptcy Court for the Northern District of Illinois Eastern Division authorized a request from bankrupt retailer Kmart to assume the software license, services, support and enhancement agreement it has with the solution provider. With the appeals process completed in October, Manhattan Associates reversed approximately $2.3 million of its related reserve in the fourth quarter of 2002.

Manhattan also said it completed 165 customer go-lives of its supply chain execution systems during 2002, an average of one go-live every two business days, and the provider highlighted its recent acquisition of logistics solution provider from Internet Capital Group for a one-time cash payment of approximately $21.2 million.

For financial news on other supply chain solutions providers, see iSourceonline's earnings roundups for February 3 (reporting on Ariba, Aspen Technology, Commerce One, Epicor, i2, PeopleSoft, SAP, SciQuest, Technology Solutions Co. and Vitria) and February 7 (for MRO Software, Printcafe, Siebel Systems and Viewlocity).

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