Exhibit 99.1
Logility Reports Fourth Quarter of Fiscal Year 2004 Results
ATLANTA, June 2 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq: LGTY), a
leading supplier of collaborative solutions to optimize the supply chain,
today announced financial results for the fourth quarter and fiscal year ended
April 30, 2004.
The fourth quarter total revenues were $5.8 million, including software
license fees of $1.8 million, compared to $2.6 million of software license
fees in the same period last year. Services and other revenues were
$1.3 million, compared to $1.8 million in the same period last year.
Maintenance revenues were $2.7 million for both periods. For the fourth
quarter, the Company reported operating income of $378,000 compared to
operating income of $1.1 million for the same quarter last year and net income
of $62,000 or negligible earnings per share, compared to a net income of
$1.2 million or earnings per share (diluted) of $0.09 for the same quarter in
the prior year. The fourth quarter included a non-cash impairment charge of
$382,000 related to a write down of a minority investment.
Total revenues for the twelve months ended April 30, 2004 were
$22.8 million compared to $24.8 million for the previous fiscal year.
Software license fees for the twelve months ended April 30, 2004 were
$6.7 million compared to $8.0 million for last year. Services and other
revenues were $5.2 million compared to $6.0 million for the previous fiscal
year. Maintenance revenues were $11.0 million compared to $10.9 million for
last year. For the twelve months ended April 30, 2004, the Company reported
operating income of $1.8 million compared to an operating income of
$1.7 million for fiscal 2003 and net income of $1.7 million, or earnings per
share (diluted) of $0.13, compared to a net income of approximately
$2.3 million, or earnings per share (diluted) of $0.17 for the prior year.
The overall financial condition of the Company remains strong with cash
and investments of approximately $30.8 million. The Company's cash and
investment position increased approximately $3.8 million compared to April 30,
2003.
"We are pleased with our ability to grow operating earnings for the third
consecutive year and deliver a net increase in our cash position of
approximately $3.8 million for the 2004 fiscal year," said J. Michael
Edenfield, Logility president and Chief Executive Officer. "Our strong balance
sheet, solid cash position and overall organizational stability combined with
our market-leading collaborative supply chain solutions allow Logility to
focus on what we do best -- develop innovative solutions that simplify complex
supply chain challenges and consistently deliver fast deployment to drive
rapid return on investment for our customers."
"Logility Voyager Solutions help distribution-intensive manufacturing,
wholesale, and retail organizations better align daily operational activities
with strategic corporate objectives to continually synchronize supply and
demand, improve forecasting and distribution, reduce inventory levels,
decrease transportation costs and gain global visibility into supply chain
performance," continued Edenfield.
Highlights for the fourth quarter and fiscal year 2004 include:
Customers
- Logility had approximately 60 customers go live with new deployments or
significant upgrades of Logility Voyager Solutions during fiscal year
2004. This impressive number of "go lives" underscores Logility's
ability to deploy rapidly to accelerate business results for its
customers.
- Notable new and existing customers placing orders with Logility during
the quarter include A.O. Smith Water Products Company, The Coleman
Company, Fischer Scientific, Intertape Polymer Group, and Premier
Farnell.
- Delco Remy International, Inc., a leading worldwide manufacturer and
remanufacturer of automotive electrical and drivetrain/powertrain
products, announced its selection of Logility Voyager Solutions(TM) to
improve inventory management and increase operational efficiencies
across its Electrical Aftermarket business.
- Chivas Brothers, the Scotch whisky business of Pernod-Ricard and the
world's third largest producer of Scotch whisky, implemented Logility
Voyager Solutions(TM) to improve inventory management, including
forecasting, planning and replenishment activities. The company will
use Logility Voyager Demand Planning to forecast customer demand and to
support the ongoing development of vendor managed inventory (VMI)
programs.
- Pernod SA, a French division of Groupe Pernod-Ricard that produces
Pastis 51, Suze and other leading spirits, extended its purchase of
Logility Voyager Solutions to simplify the overall supply chain
planning process by supporting a centralized production planning
process and reducing raw material inventories.
- Logility named Katun Corporation, the world's leading service parts
supplier of imaging supplies, as the fifth annual John Hewson Sailing
to New Heights with Logility Award winner. The award recognizes the
elite Logility customer who has leveraged innovation and collaboration
to drive measurable business improvements and supply chain excellence
through the deployment of Logility Voyager Solutions. Katun deployed
Logility Voyager Solutions on time and on budget to streamline its
global Sales and Operations Planning (S&OP) process between corporate
sales, finance, distribution, manufacturing and marketing throughout
the company. Results from the improved planning process include
increased forecast accuracy, reduced inventory investment and improved
product availability.
- Logility presented 2004 Logility Leadership Awards to:
- Rockline Industries, North America's largest supplier of coffee
filters and private label wipes, deployed Logility Voyager
Solutions to reduce overall transportation costs, increase
visibility to carriers and improve its ability to monitor key
performance indicators. Rockline implemented Logility in less than
six weeks.
- Shaw Industries, the world's largest producer of carpet, rugs,
ceramic, hardwood and laminate flooring, selected Logility to gain
better control of its inventory investment. The company has used
Logility Voyager Solutions to enable one-number forecasting and
improve forecast accuracy by 15%, raise customer satisfaction
levels for home builders, better synchronize supply with demand,
increase visibility for a 30% reduction in obsolete inventory, and
improve overall visibility and communications across its business.
- Smead, a leading manufacturer and distributor of paper filing
supplies and records management software, implemented Logility
Voyager Solutions to improve information sharing, increase
forecast accuracy and improve visibility of promotional plans.
Smead has used Logility to support a significant growth in revenue
with minor growth in inventory levels, achieve higher customer
order fill rates, increase visibility of available inventory, and
improve collaboration with customers as well as internal
departments.
- Connections 2004: Supply Chain Reality: Real World, Real Time, Real
Results took place March 24-26 in Atlanta and offered attendees the
opportunity to learn from the real-world experiences of others and
equip themselves for the next wave of demand-driven supply chain
planning challenges and triumphs. The agenda delivered insightful
presentations, including an executive panel and best practices panel on
successful strategies for tackling today's business challenges and
deploying supply chain management solutions to drive value; industry
perspectives from AMR Research and Consumer Goods Technology magazine;
and breakouts featuring successful Logility Voyager Solutions
deployments with speakers representing every major industry.
- Logility conducted a seminar on February 26 entitled "Supply Chain
Management for High Performance Companies" featuring presenters from
Chivas Brothers, Farnell InOne, Oliver Wight, IBM and Logility. The
speakers addressed how to leverage consensus-based supply chain
solutions to gain competitive advantages such as lower inventories,
reduced operating costs, maximized customer service and revenues,
increased profitability and higher return on existing supply chain
assets.
Products and Technology
- During the fiscal year, 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.
About Logility
Logility is a leading provider of collaborative solutions to optimize the
supply chain. 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 Bissell, ConAgra, Huhtamaki UK, 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)
Fourth Quarter Ended Twelve Months Ended
April 30, April 30,
Pct Pct
2004 2003 Chg. 2004 2003 Chg.
Revenues:
License $1,809 $2,647 (32%) $6,656 $8,002 (17%)
Services & other 1,324 1,839 (28%) 5,179 5,951 (13%)
Maintenance 2,650 2,701 (2%) 10,991 10,884 1%
Total Revenues 5,783 7,187 (20%) 22,826 24,837 (8%)
Cost of Revenues:
License 1,009 1,014 0% 4,054 3,904 4%
Services & other 654 984 (34%) 2,632 3,633 (28%)
Maintenance 417 403 3% 1,780 1,793 (1%)
Total Cost of Revenues 2,080 2,401 (13%) 8,466 9,330 (9%)
Gross Margin 3,703 4,786 (23%) 14,360 15,507 (7%)
Operating expenses:
Research and development 1,311 1,354 (3%) 5,408 5,401 0%
Less: capitalized
development (840) (698) 20% (3,292) (2,855) 15%
Sales and marketing 2,034 2,033 0% 7,239 7,690 (6%)
General and administrative 820 957 (14%) 3,202 3,547 (10%)
Total operating expenses 3,325 3,646 (9%) 12,557 13,783 (9%)
Operating income 378 1,140 (67%) 1,803 1,724 5%
Other income 66 96 (31%) 285 562 (49%)
Investment Impairment (382) - nm (382) - nm
Income before income taxes 62 1,236 (95%) 1,706 2,286 (25%)
Income taxes - - - - - -
Net Income $62 $1,236 (95%) $1,706 $2,286 (25%)
Earnings per common share -
Basic $- $0.09 (100%) $0.13 $0.17 (24%)
Earnings per common share -
Diluted $- $0.09 (100%) $0.13 $0.17 (24%)
Weighted average common
shares
Basic 13,130 13,151 13,120 13,185
Diluted 13,383 13,219 13,391 13,201
nm- not meaningful
Balance Sheet Information
(in thousands)
(Unaudited)
April 30,
2004 2003
Cash and Investments $30,831 $27,012
Accounts Receivable:
Billed 3,166 3,112
Unbilled 813 2,727
Total Accounts Receivable, net 3,979 5,839
Prepaids & Other Current Assets 466 329
Non-current Assets 7,092 8,322
Total Assets $42,368 $41,502
Accounts Payable $131 $52
Other Current Liabilities 4,094 5,095
Deferred Revenues 5,869 5,531
Shareholders' Equity 32,274 30,824
Total Liabilities &
Shareholders' Equity $42,368 $41,502
SOURCE Logility, Inc.
-0- 06/02/2004
/CONTACT: Financial Information, 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.
ST: Georgia
IN: CPR MLM STW NET
SU: ERN AWD