Exhibit 99.1
Logility Reports Second Quarter of Fiscal Year 2004 Results
Quarterly and Year To Date Operating Income Up Compared to Last Year
ATLANTA, Nov. 18 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq: LGTY),
a leading supplier of collaborative solutions to optimize the supply chain,
today announced financial results for the second quarter of fiscal year 2004.
The second quarter total revenues were $5.2 million, with software license
fees of $1.2 million, compared to $1.3 million in the same period last year.
Services and other revenues were $1.3 million, compared to $1.4 million in the
same period last year. Maintenance revenues were $2.7 million, unchanged from
$2.7 million in the same period last year. For the second quarter, the Company
reported operating income of $157,000 compared to an operating income of
$20,000 for the same period last year and net income of $221,000 or earnings
per diluted share of $0.02, compared to a net income of $214,000 or earnings
per diluted share of $0.02 for the same period in the prior year.
Total revenues for the six months ended October 31, 2003 were
$10.5 million compared to $11.2 million for the same period last year.
Software license fees for the six months ended October 31, 2003 were $2.3
million compared to $3.0 million for the same period last year. Services and
other revenues were $2.7 million compared to $2.8 million for the same period
last year. Maintenance revenues were $5.5 million compared to $5.4 million
for the same period last year. For the six months ended October 31, 2003, the
company reported net income of $591,000, or earnings per diluted share of $.04
compared to a net income of approximately $123,000 or earnings per diluted
share of $.01 for the same period in the prior year.
The overall financial condition of the Company remains strong with cash
and investments of approximately $27.7 million and no debt. The Company's cash
and investment position increased approximately $3.7 million compared to the
quarter ended October 31, 2002.
"We are pleased with Logility's performance during the quarter and our
continued financial strength, achieving our fifth consecutive quarter of
profitability and positive cash flow," said J. Michael Edenfield, Logility
president and Chief Executive Officer. "With our launch of Logility Voyager
Solutions version 7.0, our latest Internet-based collaborative supply chain
optimization suite, Logility is positioned for future growth as we continue to
deliver innovation and value for our customers."
"Global economic uncertainty and increased competition require
distribution-intensive companies to extend their focus on accurately
forecasting and managing customer demand," continued Edenfield. "To cost-
effectively achieve these customer-driven improvements requires synchronizing
production, service, and distribution operations to increase the overall
efficiency of the supply chain. Logility Voyager Solutions address these
business objectives and expand our customers' information reach, visibility,
speed, and responsiveness through collaborative supply chain optimization."
Highlights for the second quarter of fiscal year 2004 include:
Customers
-- Notable new and existing customers placing orders with Logility in the
second quarter include Cannondale Bicycle Corporation, Ingram Micro, Shaw
Industries, Komatsu America, and Rockline Industries.
-- Logility announced that Alberto-Culver Company, an international
manufacturer, distributor, and marketer of leading personal care products, has
selected Logility Voyager Solutions(TM) to enable collaborative transportation
planning and management across its U.S. supply chain network. The Alberto-
Culver Company manufactures and markets leading or major brands including
Alberto VO5, St. Ives, Molly McButter, Mrs. Dash and TRESemme, and its
subsidiary, Sally Beauty Company, is the world's number one marketer of
professional beauty care products.
-- Rockline Industries, North America's largest supplier of coffee
filters and private label wipes, selected and deployed Logility Voyager
Solutions(TM) to optimize transportation operations throughout the company.
Rockline anticipates a minimum projected savings of eight percent per month in
overall reduced transportation costs as a result of its rapid, seven-week
implementation.
-- Farnell InOne, the international marketer and distributor of
electronic components, maintenance, repair and operations (MRO) products and
tailored services, has upgraded to Logility Voyager Solutions(TM) Version 6.5.
Logility Version 6.5 was live in less than one month, and will increase
visibility between Farnell InOne and other Premier Farnell Group companies, to
enable increased visibility throughout its supply chain and exceptionally high
levels of customer service.
-- Logility customers Huhtamaki, one of the world's largest packaging
companies, and Mercury Marine, a $1.6B global marine engine company, each made
industry presentations on how Logility Voyager Solutions help facilitate the
sales and operations planning (S&OP) process to deliver greater visibility and
quantifiable results across their entire businesses. Huhtamaki presented at an
UK-based consumer goods industry breakfast co-sponsored by IBM and Logility.
Mercury Marine spoke at the APICS International Conference held in Las Vegas,
Nevada.
Products and Technology
-- Logility announced the general availability of Logility Voyager
Solutions(TM) 7.0, the latest release of Internet-based products that support
real-time, global visibility of forecasts, orders, inventories, deliveries and
key performance indicators across the supply chain. Logility Voyager Solutions
7.0 help companies reduce supply chain costs, optimize inventory investments,
increase sales and improve customer service through innovative demand
management, optimized supply chain planning, synchronized production,
streamlined warehouse and improved transportation management.
-- Logility outlined plans to support full Radio Frequency Identification
(RFID) compliance across its supply chain planning, warehouse and logistics
products. Logility Voyager WarehousePRO(R) will initially support RFID
technology within the warehouse at the carton, pallet and container level to
streamline the shipment of goods to retail customers and accelerate the
receipt of products into distribution centers. Logility is working with
BISSELL, an international manufacturer of home cleaning products, to deploy a
rollout plan for RFID technology.
-- Logility and Plan4Demand, a Pittsburgh-based consulting services firm
specializing in supply chain management solutions, announced a business
alliance to provide additional implementation resources, customize best
practices training and prioritize business process improvement for the
deployment of Logility Voyager Solutions. Plan4Demand and Logility will work
together to help companies with distribution-intensive supply chains benefit
from faster implementations, and provide the capability to develop and deploy
highly customized training, a tangible tool for driving change management and
ensuring maximum self-sufficiency.
About Logility
Logility is a leading supplier of collaborative supply chain solutions.
Logility Voyager Solutions enable networks of trading partners including
suppliers, manufacturers, distributors and retailers to collaborate, integrate
and synchronize their planning, production, warehouse and transportation
operations. Logility customers have realized substantial bottom-line results
in record time. Logility is proud to serve such customers as Continental Tire
North America, Huhtamaki UK, McCormick & Company, Mill's Pride, Pernod-Ricard,
Sigma Aldrich, VF Corporation and xpedx. Logility is a majority owned
subsidiary of American Software (Nasdaq: AMSWA). For more information about
Logility call 1-800-762-5207 or visit www.logility.com .
Forward Looking Statements
This press release contains forward-looking statements that are subject to
substantial risks and uncertainties. There are a number of factors that could
cause actual results to differ materially from those anticipated by statements
made herein. These factors include, but are not limited to, changes in
general economic conditions, technology and the market for the Company's
products and services including economic conditions within the e-commerce
markets; the timely availability and market acceptance of these products and
services; the effect of competitive products and pricing; the uncertainty of
the viability and effectiveness of strategic alliances; and the irregular
pattern of the Company's revenues. For further information about risks the
Company could experience as well as other information, please refer to the
Company's Form 10-K for the year ended April 30, 2003 and other reports and
documents subsequently filed with the Securities and Exchange Commission. For
more information, contact Vincent C. Klinges, Chief Financial Officer,
Logility, Inc., 470 East Paces Ferry Rd., Atlanta, GA 30305, (404) 261-9777.
FAX: (404) 264-5206 INTERNET: www.logility.com or E-mail:
askLogility@logility.com.
Logility Voyager Solutions is a trademark of Logility. Other products
mentioned in this document are registered, trademarked or service marked by
their respective owners.
LOGILITY, INC.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
October 31, October 31,
Pct Pct
2003 2002 Chg. 2003 2002 Chg.
Revenues:
License $1,174 $1,275 (8%) $2,285 $3,013 (24%)
Services & other 1,281 1,396 (8%) 2,735 2,777 (2%)
Maintenance 2,712 2,709 0% 5,509 5,411 2%
Total Revenues 5,167 5,380 (4%) 10,529 11,201 (6%)
Cost of Revenues:
License 1,013 778 30% 1,969 1,757 12%
Services & other 667 729 (9%) 1,367 1,916 (29%)
Maintenance 459 496 (7%) 902 947 (5%)
Total Cost of Revenues 2,139 2,003 7% 4,238 4,620 (8%)
Gross Margin 3,028 3,377 (10%) 6,291 6,581 (4%)
Operating expenses:
Research and development 1,395 1,320 6% 2,760 2,735 1%
Less: capitalized
development (849) (721) 18% (1,651) (1,489) 11%
Sales and marketing 1,599 1,848 (13%) 3,220 3,902 (17%)
General and administrative 726 910 (20%) 1,481 1,692 (12%)
Total operating expenses 2,871 3,357 (14%) 5,810 6,840 (15%)
Operating income 157 20 685% 481 (259) nm
Other income 64 194 (67%) 110 382 (71%)
Income before income taxes 221 214 3% 591 123 380%
Income taxes - - - - - -
Net Income $221 $214 3% $591 $123 380%
Earnings per common share -
Basic $0.02 $0.02 0% $0.05 $0.01 400%
Earnings per common share -
Diluted $0.02 $0.02 0% $0.04 $0.01 300%
Weighted average common shares
Basic 13,105 13,199 13,119 13,206
Diluted 13,317 13,204 13,322 13,214
nm- not meaningful
Balance Sheet Information
(in thousands)
(Unaudited)
October 31,
2003 2002
Cash and Short & Long term
investments $27,749 $24,043
Accounts Receivable:
Billed 2,510 2,170
Unbilled 672 1,868
Total Accounts Receivable, net 3,182 4,038
Prepaids & Other 371 339
Other Assets 7,926 9,052
Total Assets $39,228 $37,472
Accounts Payable $197 $183
Other Current Liabilities 3,641 4,213
Deferred Revenues 4,213 4,244
Shareholders' Equity 31,177 28,832
Total Liabilities &
Shareholders' Equity $39,228 $37,472
SOURCE Logility, Inc.
-0- 11/18/2003
/CONTACT: Financial Information Press, Vincent C. Klinges, Chief
Financial Officer of Logility, Inc., +1-404-264-5477/
/Company News On-Call: http://www.prnewswire.com/comp/120967.html/
/Web site: http://www.logility.com /
(LGTY AMSWA)
CO: Logility, Inc.; American Software
ST: Georgia
IN: CPR MLM STW NET REA HOU
SU: ERN