Manhattan Associates (MANH) 8-K Manhattan Associates Reports Record 3rd Quarter Revenue and Earnings

Financial Contact:	Dennis Story
	SVP and Chief Financial Officer
	678.597.7116
	dstory@manh.com
Media Contact:	Terrie O’Hanlon
	SVP and Chief Marketing Officer
	678.597.7120
	tohanlon@manh.com

Manhattan Associates Reports Record 3^rd Quarter Revenue and
Earnings

Company raises full year EPS guidance

ATLANTA — October 23, 2007 —Leading supply chain solutions provider Manhattan Associates, Inc. (NASDAQ: MANH), today reported record third quarter 2007 revenue and earnings and raised its Earnings Per Share (EPS) guidance for the year. Manhattan Associates’ third quarter GAAP diluted earnings per share were $0.29, a 53% increase over the third quarter of 2006 on revenue of $84.6 million, a 17% increase. On a non-GAAP basis, adjusted diluted earnings per share were $0.34, a 26% increase over the third quarter of 2006.

THIRD QUARTER FINANCIAL HIGHLIGHTS

Summarized highlights of the 2007 third quarter results, as compared to the 2006 third quarter, follow.

• Consolidated revenue increased 17% to $84.6 million. Excluding the impact of currency changes, revenue increased 16%.

• License revenue totaled $17.3 million, an increase of 14%.

• Services revenue totaled $58.4 million, increasing 14%.

• GAAP Operating income increased 25% to $10.6 million. Excluding the impact of currency changes, GAAP operating income increased 32%;

• Operating income, on a non-GAAP basis, increased 10% to $12.7 million. Excluding the impact of currency changes, operating income on a non-GAAP basis increased 15%.

• GAAP diluted earnings per share increased 53% to $0.29.

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Manhattan Associates Reports Record Third Quarter Revenue — page 2 of 6

• Adjusted diluted earnings per share increased 26% to $0.34 per share.

• Appreciation of the Rupee (the company has a major research and development center in India) and other currency changes negatively impacted GAAP and adjusted operating income by $0.6 million or $0.01 per share. The negative $0.01 impact of currency changes on operating results was offset by $0.02 of foreign exchange gains in Other Income. The combined net impact of currency appreciation and foreign exchange gains in the quarter for GAAP and Adjusted EPS results was an increase of $0.01 per diluted share.

• Cash Flow from Operations was $6.4 million, with Days Sales Outstanding of 80 days.

• Cash and Investments on Hand at September 30, 2007 was $82.0 million.

• The Company repurchased 809,680 common shares totaling $22.2 million at an average share price of $27.37 in the quarter.

• The Board of Directors approved the repurchase of up to $50.0 million of Manhattan Associates’ outstanding common stock. The Board of Directors also appointed two additional members: Pete Kight, Chairman and CEO of CheckFree Corporation, a leading provider of financial e-commerce solutions; and Dan Lautenbach, a 30-year veteran of technology solution companies, primarily IBM, where he ran global software sales.

YEAR-TO-DATE FINANCIAL HIGHLIGHTS

Summarized highlights of the first nine months of 2007, as compared to the first nine months of 2006, follow.

• Consolidated revenue increased 19% to $252.4 million. Excluding the impact of currency changes, revenue increased 17%.

• License revenue was $54.5 million, increasing 15%.

• Services revenue totaled $169.1 million, a 17% increase.

• GAAP operating income increased 41% to $31.5 million. Excluding the impact of currency changes, GAAP operating income increased 45%.

• On a non-GAAP basis, operating income increased 16% to $37.3 million. Excluding the impact of currency changes operating income on a non-GAAP basis increased 19%.

• GAAP diluted earnings per share increased 54% to $0.80.

• Adjusted diluted earnings per share, on a non-GAAP basis, increased 21% to $0.94.

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Manhattan Associates Reports Record Third Quarter Revenue — page 3 of 6

• Appreciation of the Rupee and other currency changes negatively impacted GAAP and adjusted operating income by $1.0 million, or $0.02 per share. The negative $1.0 million impact of currency changes on operating results was partially offset by $0.3 million of foreign exchange gains in Other Income. The combined net impact of currency appreciation and foreign exchange gains on year-to-date GAAP and Adjusted EPS results was a reduction of $0.02 per diluted share.

“The third quarter of 2007 marks our 12^th consecutive quarter of double digit revenue growth,” said Pete Sinisgalli, President and CEO. “Each of our three regions contributed to our solid license revenue growth and was profitable in the quarter. Importantly, more than half of our third quarter license revenue came from new customers as we continue to capture market share from competitors. Moreover, our forecast for the fourth quarter is strong. Therefore, we are increasing our adjusted EPS guidance range by 2 cents on the low end and by 3 cents on the high end to a revised range of $1.29 to $1.34,” he added.

Significant sales-related achievements during the quarter follow.

• New customers such as: 3 Suisses; ASICS America Corporation; Barnes Distribution; Bed, Bath & Beyond; Blackhawk Products Group; Citi Trends, Inc.; Domaxel; Dalepak Limited; Elecon; Electronics for Imaging, Inc.; ElektroKomplektServis; Fitness Quest, Inc.; Gloria Jeans; H E Butt Grocery (HEB); Jefferson Smurfit Corporation; Lamps Plus, Inc.; National Freight, Inc.; Nelson Education Limited; Nestle Nespresso SA; Nor-Cal Beverage Co., Inc.; Northern Safety Co., Inc.; Orchard Brands, Inc. (aka Blair Corp); Performance Warehouse; Reckitt Benckiser, Inc; Restoration Hardware; Safeway, Inc.; Target Corporation; The Apparel Group; and The Tire Rack, Inc.

• Expanding partnerships with existing customers such as: Always; Argos Limited; Fruit of the Loom Limited; Tesco Stores Limited; and US Foodservice.

• Closing four large contracts, each of which generated $1 million or more in recognized license revenue.

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Manhattan Associates Reports Record Third Quarter Revenue — page 4 of 6

2007 GUIDANCE

Manhattan Associates provided the following diluted earnings per share guidance for the fourth quarter and full year 2007. The GAAP diluted earnings per share includes the impact of stock options expense under SFAS 123(R). A full reconciliation of GAAP to non-GAAP diluted earnings per share is included in the supplemental attachments to this release.

	Fully Diluted EPS
	Per Share range				% Growth range
GAAP Earnings Per Share
Q4 2007 - diluted earnings per share	$	0.30	$	0.35		76	%	106	%
Full year 2007 - diluted earnings per share	$	1.09	$	1.14		58	%	65	%
Adjusted Earnings Per Share
Q4 2007 - diluted earnings per share	$	0.35	$	0.40		13	%	29	%
Full year 2007 - diluted earnings per share	$	1.29	$	1.34		19	%	24	%

Manhattan Associates currently intends to publish, in each quarterly earnings release, certain expectations with respect to future financial performance. These statements are forward-looking. Actual results may differ materially, especially in the current uncertain economic environment. These statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of this release.

Manhattan Associates will make its earnings release and published expectations available on its Web site (www.manh.com). Beginning December 15, 2007, Manhattan Associates will observe a “Quiet Period” during which Manhattan Associates and its representatives will not comment concerning previously published financial expectations. Prior to the start of the Quiet Period, the public can continue to rely on the expectations published in this 2007 Guidance section as still being Manhattan Associates’ current expectation on matters covered, unless Manhattan Associates publishes a notice stating otherwise. During the Quiet Period, previously published expectations should be considered historical only, speaking only as of or prior to the Quiet Period, and Manhattan Associates disclaims any obligation to update any previously published financial expectations during the Quiet Period. The Quiet Period will extend until the date when Manhattan Associates’ next quarterly earnings release is published, currently scheduled for the first week of February 2008.

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CONFERENCE CALL

The Company’s conference call regarding its third quarter financial results will be held at 4:30 p.m. Eastern time on Tuesday, October 23, 2007 after the market closes. Investors are invited to listen to a live Web cast of the conference call through the investor relations section of Manhattan Associates’ Web site. To listen to the live Web cast, please go to the Web site at least 15 minutes before the call to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call by dialing +1.800.642.1687 in the U.S. or Canada and +1.706.645.9291 outside the U.S., and entering the conference identification number 16923337, or via the Web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet broadcast will be archived at Manhattan Associates’ Web site.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income, adjusted net income and adjusted earnings per share in this press release as additional information regarding the Company’s operating results. The measures are not in accordance with — or an alternative for — GAAP, and may be different from non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share measures used by other companies. The Company believes that this presentation of adjusted operating income, adjusted net income and adjusted earnings per share facilitates investors’ understanding of our historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of our business, as distinct from results that include items that are not indicative of ongoing operating results, and thus provide investors with useful insight into our profitability exclusive of unusual adjustments. This release should be read in conjunction with our Form 8-K earnings release filing for the quarter ended September 30, 2007.

The non-GAAP adjusted operating income, adjusted net income and adjusted earnings per share exclude the impact of acquisition related costs and the amortization thereof, the recapture of previously recognized sales tax expense and stock option expense under SFAS 123(R). A reconciliation of our GAAP financial measures to non-GAAP adjustments is included in the supplemental attachment to this release.

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Manhattan Associates Reports Record Third Quarter Revenue — page 6 of 6

The Company also provides revenue, GAAP and adjusted operating income, and GAAP and adjusted diluted earnings per share excluding the impact of foreign currency exchange. This information is not in accordance with — or an alternative for — GAAP, and may be different from measures used by other companies. The Company believes that this information allows a more meaningful comparison of the Company’s performance from period to period.

About Manhattan Associates, Inc.

Manhattan Associates^® provides global supply chain solutions to organizations that consider supply chain software, processes and technology strategic to market leadership. The company’s software portfolio includes five key Supply Chain Solution Suites: Planning and Forecasting, Inventory Optimization, Order Lifecycle Management, Transportation Lifecycle Management and Distribution Management. These solution suites are enhanced by Platform Applications — including Supply Chain Intelligence, Supply Chain Visibility and Supply Chain Event Management - that organize and deliver the information and processes needed to optimize supply chains across functions and locations within and outside an enterprise.. A Supply Chain Process Platform provides a unifying architecture that fosters agility and scalability while minimizing solution implementation, evolution and support costs. More than 1,200 customers worldwide use Manhattan Associates’ global supply chain solutions to enhance profitability and build sustainable competitive advantage. For more information, please visitwww.manh.com.

This press release may contain “forward-looking statements” relating to Manhattan Associates, Inc. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, undetected software errors, competitive pressures, technical difficulties, market acceptance, availability of technical personnel, changes in customer requirements, risks of international operations and general economic conditions. Additional risk factors are set forth in Item 1A. of the Company’s Annual Report on Form 10-K for the year ended December 31, 2006. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.

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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(unaudited and in thousands, except per share amounts)

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2007		2006		2007		2006
Revenue:
License	$	17,303	$	15,217	$	54,454	$	47,540
Services		58,437		51,049		169,100		144,642
Hardware and other		8,849		6,046		28,854		20,816
Total Revenue		84,589		72,312		252,408		212,998
Costs and Expenses:
Cost of license		1,599		1,400		4,045		4,410
Cost of services		28,348		24,231		81,631		69,908
Cost of hardware and other		7,286		5,356		24,511		18,328
Research and development		11,887		9,765		35,316		30,398
Sales and marketing		13,079		11,407		40,177		34,018
General and administrative		8,397		7,896		24,926		21,863
Depreciation and amortization		3,406		3,377		10,261		9,914
Asset impairment charge		—		270		—		270
Acquisition-related charges		—		174		—		1,503
Total costs and expenses		74,002		63,876		220,867		190,612
Operating income		10,587		8,436		31,541		22,386
Other income, net		1,619		630		3,009		2,727
Income before income taxes		12,206		9,066		34,550		25,113
Income tax provision		4,321		3,822		12,253		10,596
Net income	$	7,885	$	5,244	$	22,297	$	14,517
Basic earnings per share	$	0.31	$	0.19	$	0.84	$	0.53
Diluted earnings per share	$	0.29	$	0.19	$	0.80	$	0.52
Weighted average number of shares:
Basic		25,739		26,969		26,536		27,151
Diluted		26,879		27,462		27,723		27,688

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES
(unaudited and in thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
Operating income	$	10,587		$	8,436		$	31,541		$	22,386
Stock option expense		1,224	(a)		1,831	(a)		3,475	(a)		5,451	(a)
Purchase amortization		1,180	(b)		1,217	(b)		3,570	(b)		3,651	(b)
Acquisition-related charges		—			174	(c)		—			1,503	(c)
Asset impairment charge		—			270	(d)		—			270	(d)
Sales tax recoveries		(269)	(d)		(324	)(e)		(1,292)	(d)		(1,056	)(e)
Adjusted operating income (Non-GAAP)	$	12,722		$	11,604		$	37,294		$	32,205
Income tax provision	$	4,321		$	3,822		$	12,253		$	10,596
Stock option expense		435	(a)		370	(a)		1,234	(a)		1,172	(a)
Purchase amortization		419	(b)		469	(b)		1,267	(b)		1,406	(b)
Acquisition-related charges		—			67	(c)		—			579	(c)
Asset impairment charge		—			104	(d)		—			104	(d)
Sales tax recoveries		(96)	(d)		(125	)(e)		(459)	(d)		(408	)(e)
Adjusted income tax provision (Non-GAAP)	$	5,079		$	4,707		$	14,295		$	13,449
Net income	$	7,885		$	5,244		$	22,297		$	14,517
Stock option expense		789	(a)		1,461	(a)		2,241	(a)		4,279	(a)
Purchase amortization		761	(b)		748	(b)		2,303	(b)		2,245	(b)
Acquisition-related charges		—			107	(c)		—			924	(c)
Asset impairment charge		—			166	(d)		—			166	(d)
Sales tax recoveries		(173)	(d)		(199	)(e)		(833)	(d)		(648	)(e)
Adjusted Net income (Non-GAAP)	$	9,262		$	7,527		$	26,008		$	21,483
Diluted EPS	$	0.29		$	0.19		$	0.80		$	0.52
Stock option expense	$	0.03	(a)	$	0.05	(a)	$	0.08	(a)	$	0.15	(a)
Purchase amortization	$	0.03	(b)	$	0.03	(b)	$	0.08	(b)	$	0.08	(b)
Acquisition-related charges	$	—		$	0.00	(c)	$	—		$	0.03	(c)
Asset impairment charge	$	—		$	0.01	(d)	$	—		$	0.01	(d)
Sales tax recoveries	$	(0.01)	(d)	$	(0.01	)(e)	$	(0.03)	(d)	$	(0.02	)(e)
Adjusted Diluted EPS (Non-GAAP)	$	0.34		$	0.27		$	0.94		$	0.78
Fully Diluted Shares		26,879			27,462			27,723			27,688

(a) SFAS 123(R) requires us to expense stock options issued to employees. Because stock option expense is determined in significant part by the trading price of our common stock and the volatility thereof, over which we have no direct control, the impact of such expense is not subject to effective management by us. Thus, we have excluded the impact of this expense from adjusted non-GAAP results. The stock option expense is included in the following GAAP operating expense lines for the three and nine months ended September 30, 2007 and 2006:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2007		2006		2007		2006
Cost of services	$	108	$	546	$	321	$	1,609
Research and development		160		261		474		737
Sales and marketing		375		405		1,115		1,114
General and administrative		581		619		1,565		1,991
Total stock option expense	$	1,224	$	1,831	$	3,475	$	5,451

(b)	Adjustments represent purchase amortization from prior acquisitions. Such amortization is commonly excluded from GAAP net income by companies in our industry and we therefore exclude these amortization costs to provide more relevant and meaningful comparisons of our operating results to that of our competitors.
(c)	In conjunction with the Evant acquisition, we paid $2.8 million into escrow for employee retention bonuses to be paid upon completion of up to 12 months of service with us. During 2006, we completed the Evant retention bonus program and paid out the final bonuses. The 2006 adjustment represents the current period expense associated with these retention bonuses. We have excluded these costs because they do not correlate to the expenses of our core operations.
(d)	During the quarter ended September 30, 2006, we recorded an impairment charge of $270 against a $2.0 million investment in a technology company. We made our original investment in 2003. Because of the value of the investment is beyond our control and does not relate to our core operations, we have excluded the asset impairment from adjusted non-GAAP results.
(e)	Adjustment represents recoveries of previously expensed sales tax resulting primarily from the expiration of the sales tax audit statutes in certain states. Because we have recognized the full potential amount of the sales tax expense in prior periods, any recovery of that expense resulting from the expiration of the statutes or the collection of tax from our customers would overstate the current period net income derived from our core operations as the recovery is not a result of any event occurring within our control during the current period. Thus, we have excluded these recoveries from adjusted non-GAAP results.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

	September 30,		December 31,
	2007		2006
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	32,531	$	18,449
Short term investments		36,228		90,570
Accounts receivable, net of a $6,002 and $4,901 allowance for doubtful accounts in 2007 and 2006, respectively		73,166		60,937
Deferred income taxes		6,558		5,208
Prepaid expenses and other current assets		9,199		11,939
Total current assets		157,682		187,103
Property and equipment, net		25,198		15,850
Long-term investments		13,226		22,038
Acquisition-related intangible assets, net		10,774		14,344
Goodwill, net		62,279		70,361
Deferred income taxes		7,890		481
Other assets		5,488		4,716
Total assets	$	282,537	$	314,893
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	7,912	$	11,716
Accrued compensation and benefits		18,557		16,560
Accrued and other liabilities		10,096		13,872
Deferred revenue		32,968		29,918
Income taxes payable		5,310		4,006
Total current liabilities		74,843		76,072
Other non-current liabilities		7,990		1,681
Shareholders’ equity:
Preferred stock, no par value; 20,000,000 shares authorized, no shares issued or outstanding in 2007 or 2006		—		—
Common stock, $.01 par value; 100,000,000 shares authorized, 25,702,405 shares issued and outstanding in 2007 and 27,610,105 shares issued and outstanding in 2006		254		276
Additional paid-in capital		39,685		98,704
Retained earnings		156,736		136,321
Accumulated other comprehensive income		3,029		1,839
Total shareholders’ equity		199,704		237,140
Total liabilities and shareholders’ equity	$	282,537	$	314,893

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited and in thousands)

	Nine Months Ended
	September 30,
	2007			2006
Operating activities:
Net income	$	22,297		$	14,517
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		10,261			9,914
Asset impairment charge		—			270
Stock compensation		4,939			5,544
Loss/(Gain) on disposal of equipment		26			(32	)
Tax benefit of options exercised		1,596			2,444
Excess tax benefits from stock based compensation		(607	)		(1,792	)
Deferred income taxes		(742	)		(790	)
Unrealized foreign currency loss		(880	)		622
Changes in operating assets and liabilities:
Accounts receivable, net		(11,341	)		5,510
Other assets		2,228			(2,055	)
Prepaid retention bonus		—			1,599
Accounts payable, accrued and other liabilities		(7,173	)		(1,066	)
Income taxes		(1,304	)		2,528
Deferred revenue		3,261			4,133
Net cash provided by operating activities		22,561			41,346
Investing activities:
Purchase of property and equipment		(7,934	)		(7,529	)
Net maturities (purchases) of investments		63,185			(29,631	)
Payments in connection with various acquisitions		—			(126	)
Net cash provided by (used in) investing activities		55,251			(37,286	)
Financing activities:
Payment of capital lease obligations		—			(72	)
Purchase of common stock		(74,932	)		(16,029	)
Excess tax benefits from stock based compensation		607			1,792
Proceeds from issuance of common stock from options exercised		9,356			5,124
Net cash used in financing activities		(64,969	)		(9,185	)
Foreign currency impact on cash		1,239			(775	)
Net change in cash and cash equivalents		14,082			(5,900	)
Cash and cash equivalents at beginning of period		18,449			19,419
Cash and cash equivalents at end of period	$	32,531		$	13,519
Supplemental disclosures of cash flow information — noncash investing activity:
Tenant improvements funded by landlord	$	7,918		$	—

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

1. GAAP and Adjusted Earnings per share by quarter are as follows:

	2006												2007									2006			2007
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			YTD			YTD
GAAP Diluted EPS	$	0.08		$	0.25		$	0.19		$	0.17		$	0.19		$	0.32		$	0.29		$	0.52		$	0.80
Adjustments to GAAP:
Stock option expense	$	0.04		$	0.06		$	0.05		$	0.03		$	0.03		$	0.03		$	0.03		$	0.15		$	0.08
Purchase amortization	$	0.03		$	0.03		$	0.03		$	0.03		$	0.03		$	0.03		$	0.03		$	0.08		$	0.08
Acquisition related charges	$	0.02		$	0.01		$	—		$	—		$	—		$	—		$	—		$	0.03		$	—
Write off of receivable and settlement charges	$	—		$	—		$	—		$	0.09		$	—		$	—		$	—		$	—		$	—
Asset impairment charge	$	—		$	—		$	0.01		$	—		$	—		$	—		$	—		$	0.01		$	—
Sales tax recoveries	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.01	)	$	(0.02	)	$	(0.03	)
Adjusted Diluted EPS	$	0.16		$	0.34		$	0.27		$	0.31		$	0.23		$	0.36		$	0.34		$	0.78		$	0.94

2. Revenues and operating income (loss) by reportable segment are as follows (in thousands):

	2006												2007									2006			2007
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			YTD			YTD
Revenue:
Americas	$	51,143		$	65,695		$	60,799		$	64,683		$	68,446		$	75,599		$	69,850		$	177,637		$	213,895
EMEA		6,952			6,850			6,478			7,071			5,844			9,809			10,463			20,280			26,116
Asia Pacific		4,690			5,356			5,035			4,116			3,900			4,221			4,276			15,081			12,397
	$	62,785		$	77,901		$	72,312		$	75,870		$	78,190		$	89,629		$	84,589		$	212,998		$	252,408
GAAP Operating Income (Loss):
Americas	$	2,467		$	10,095		$	9,131		$	11,054		$	8,734		$	12,338		$	8,894		$	21,693		$	29,966
EMEA		245			3			(839	)		(2,226	)		(1,321	)		1,145			1,432			(591	)		1,256
Asia Pacific		401			739			144			(459	)		(131	)		189			261			1,284			319
	$	3,113		$	10,837		$	8,436		$	8,369		$	7,282		$	13,672		$	10,587		$	22,386		$	31,541
Adjustments (pre-tax):
Americas:
Stock option expense	$	1,558		$	1,819		$	1,700		$	1,177		$	1,082		$	1,090		$	1,184		$	5,077		$	3,356
Purchase amortization		1,217			1,217			1,217			1,217			1,195			1,195			1,180			3,651			3,570
Acquisition related charges		722			607			174			—			—			—			—			1,503			—
Settlement charges		—			—			—			810			—			—			—			—			—
Asset impairment charge		—			—			270			—			—			—			—			270			—
Sales tax recoveries		(267	)		(465	)		(324	)		(514	)		(373	)		(650	)		(269	)		(1,056	)		(1,292	)
	$	3,230		$	3,178		$	3,037		$	2,690		$	1,904		$	1,635		$	2,095		$	9,445		$	5,634
EMEA:
Stock option expense	$	118		$	125		$	131		$	15		$	39		$	40		$	40		$	374		$	119
Write off of receivable and settlement charges		—			—			—			2,046			—			—						—			—
	$	118		$	125		$	131		$	2,061		$	39		$	40		$	40		$	374		$	119
Total Adjustments	$	3,348		$	3,303		$	3,168		$	4,751		$	1,943		$	1,675		$	2,135		$	9,819		$	5,753
Adjusted non-GAAP Operating Income (Loss):
Americas	$	5,697		$	13,273		$	12,168		$	13,744		$	10,638		$	13,973		$	10,989		$	31,138		$	35,600
EMEA		363			128			(708	)		(165	)		(1,282	)		1,185			1,472			(217	)		1,375
Asia Pacific		401			739			144			(459	)		(131	)		189			261			1,284			319
	$	6,461		$	14,140		$	11,604		$	13,120		$	9,225		$	15,347		$	12,722		$	32,205		$	37,294

3. Our services revenue consists of fees generated from professional services and customer support and software enhancements related to our software products as follows (in thousands):

	2006								2007						2006		2007
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		YTD		YTD
Professional services	$	31,801	$	34,376	$	36,105	$	34,105	$	38,831	$	39,865	$	41,488	$	102,282	$	120,184
Customer support and software enhancements		13,361		14,055		14,944		15,774		15,969		15,998		16,949		42,360		48,916
Total services revenue	$	45,162	$	48,431	$	51,049	$	49,879	$	54,800	$	55,863	$	58,437	$	144,642	$	169,100

4. Hardware and other revenue includes the following items (in thousands):

	2006								2007						2006		2007
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		YTD		YTD
Hardware revenue		4,471		5,424		3,326		4,967		6,666		7,270		5,614	$	13,221	$	19,550
Billed Travel		2,076		2,799		2,720		2,021		2,971		3,098		3,235		7,595		9,304
Total Hardware and other revenue	$	6,547	$	8,223	$	6,046	$	6,988	$	9,637	$	10,368	$	8,849	$	20,816	$	28,854

MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION

5.	Impact of Currency Fluctuation
	The following table reflects the increases (decreases) in the results of operations for each period attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency gains (losses) included in other income, net for each period (in thousands):

	2006												2007									2006			2007
	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			1st Qtr			2nd Qtr			3rd Qtr		��	YTD			YTD
Revenue	$	(853	)	$	(158	)	$	251		$	779		$	748		$	992		$	1,049		$	(760	)	$	2,789
Costs and Expenses		(823	)		(324	)		53			1,030			858			1,306			1,629			(1,094	)		3,793
Operating Income		(30	)		166			198			(251	)		(110	)		(314	)		(580	)		334			(1,004	)
Foreign currency gains (losses) in other income		98			275			(34	)		(91	)		(22	)		(602	)		897			339			273
	$	68		$	441		$	164		$	(342	)	$	(132	)	$	(916	)	$	317		$	673		$	(731	)

Manhattan Associates has a large research and development center in Bangalore, India. The following table reflects the increases (decreases) in the financial results for each period attributable to changes in the Indian Rupee exchange rate (in thousands):

	2006										2007									2006		2007
	1st Qtr			2nd Qtr		3rd Qtr		4th Qtr			1st Qtr			2nd Qtr			3rd Qtr			YTD		YTD
Operating Income		53			145		235		(32	)		(14	)		(443	)		(693	)	$	433	$	(1,150	)
Foreign currency gains (losses) in other income		(30	)		25		87		(136	)		(82	)		(536	)		(312	)		82		(930	)
Total impact of changes in the Indian Rupee	$	23		$	170	$	322	$	(168	)	$	(96	)	$	(979	)	$	(1,005	)	$	515	$	(2,080	)

6. Capital expenditures are as follows (in thousands):

	2006								2007						2006		2007
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		1st Qtr		2nd Qtr		3rd Qtr		YTD		YTD
Capital expenditures	$	2,195	$	2,603	$	2,731	$	2,112	$	2,956	$	3,511	$	1,467	$	7,529	$	7,934

7.	Stock Repurchase Activity
	During the first nine months of 2007, we repurchased 2.7 million shares of common stock totaling $75 million at an average price of $28.10. In 2006 for the full year, we repurchased 0.8 million shares of common stock totaling $16.0 million at an average cost of $20.73.