Exhibit 99.1
Logility Reports Second Quarter of Fiscal Year 2005 Results
ATLANTA, Nov. 29 /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 2005.
On September 30, 2004, Logility purchased certain assets and the
distribution channel of privately-held Demand Management, Inc. a St. Louis-
based provider of supply chain planning systems marketed under the Demand
Solutions brand, for approximately $9.5 million in cash less a working capital
adjustment. The second quarter 2005 results include Demand Management's results
for the month of October 2004.
The second quarter total revenues were $4.8 million, including software
license fees of $656,000, compared to total revenues of $5.2 million and $1.2
million of software license fees in the same period last year. Services and
other revenues were $1.1 million, compared to $1.3 million in the same period
last year. Maintenance revenues were $3.0 million, compared to $2.7 million in
the same period last year. For the second quarter, the Company reported an
operating loss of $544,000 compared to operating income of $157,000 for the same
quarter last year and a net loss of $528,000 or loss per share of $0.04,
compared to a net income of $221,000 or earnings per share (diluted) of $0.02
for the same quarter in the prior year. Second quarter 2005 financial results
included one month of operations following our September 30, 2004 acquisition of
Demand Management, which accounted for approximately $287,000 of Logility's net
loss primarily due to non-cash items.
Total revenues for the six months ended October 31, 2004 were $10.3 million
compared to $10.5 million for the same period last year. Software license fees
for the six months ended October 31, 2004 were $2.1 million compared to $2.3
million for the same period last year. Services and other revenues were $2.4
million compared to $2.7 million for the same period last year. Maintenance
revenues were $5.8 million compared to $5.5 million for the same period last
year. For the six months ended October 31, 2004, the Company reported a net loss
of $151,000, or loss per share of $.01 compared to a net income of approximately
$591,000 or earnings per share (diluted) of $.04 for the same period in the
prior year.
The overall financial condition of the Company remains strong with cash and
investments of approximately $21.0 million as of October 31, 2004. During the
quarter, Logility purchased approximately 124,000 of its shares on the open
market under the current stock buyback program at a cost of approximately
$602,000. There are approximately 541,000 shares remaining to purchase under the
current authorization of shares.
"The highlight of the quarter was the acquisition of Demand Management. With
this acquisition of Demand Management, we see tremendous potential to increase
the intrinsic value of Logility by leveraging our supply chain knowledge and
extending our reach into an under-served market segment of SMB companies," said
J. Michael Edenfield, Logility president and Chief Executive Officer. "This move
gives us access to a large, satisfied customer base and provides an immediate
opportunity to expand our worldwide sales and implementation resources. We
believe Logility is the only vendor that can meet the supply chain planning
needs of the SMB market as well as serve the more complex requirements of large
and Fortune 1000 businesses."
The acquisition is expected to be accretive to Logility's earnings and cash
flow within the next 12 months, and is expected to contribute approximately $10
million in annual revenue, with 50% as a recurring component.
The acquisition provides more than 800 active customers in the growing small
and midsize business (SMB) market, which brings the Logility customer base to
approximately 1,100 and gives Logility what is believed to be the largest
installed base of supply chain planning customers among application software
vendors. Logility will continue to sell Demand Solutions as a separate product
line to the SMB market through Demand Management's existing value-added reseller
distribution network, which currently serves customers in more than 70
countries. Logility will also continue to offer the Logility Voyager
Solutions(TM) suite to its traditional target market of upper-midsize to Fortune
1000 companies with distributive-intensive supply chains.
Some of the unique assets that Logility acquires through this transaction
include:
-- Distribution Channel. Demand Management has a worldwide value-added
reseller (VAR) network of 23 organizations with 67 sales, implementation
and support resources. This network will continue to sell Demand
Solutions products, and Logility plans to introduce components of the
Logility Voyager Solutions suite into appropriate areas of this proven
distribution channel.
-- Customer Base. Demand Management has approximately 800 active customers
in over 70 countries in consumer goods, food and beverage, apparel, life
sciences, service parts and retail industries. The VAR channel and
Demand Management subsidiary of Logility will continue to support these
loyal Demand Solutions customers.
-- Technology. The Demand Solution products are designed for SMB companies
and include supply chain forecasting, demand planning, inventory
planning and replenishment planning. The Demand Solution Stores product
enables store-level forecast modeling and replenishment capabilities for
retailers.
Highlights for the second fiscal quarter of 2005 include:
Strategic Acquisition
-- Logility acquired certain assets and the distribution channel of
privately-held Demand Management, Inc., a St. Louis-based provider of
supply chain planning systems marketed under the Demand Solutions(R)
brand, for $9.5 million in cash. The acquisition significantly
strengthens Logility's supply chain planning market position for small
and midsize businesses, extends the company's worldwide distribution
channel and increases the Logility customer base to over 1100.
Customers
-- Notable new and existing customers placing orders with Logility in the
second quarter include Continental Tires North America, Hunter Fan, JRH
Biosciences, Land O' Frost, Lindt & Sprungli and Tyco Safety Products.
-- Aspen Pet Products, a private manufacturer and distributor of high
quality pet care products, implemented Logility Voyager Solutions(TM) in
less than five months for improved inventory management, forecast
accuracy and collaboration.
-- Representatives of Smead Corporation, a leading manufacturer and
distributor of paper filing supplies and records management software and
long-time Logility customer, spoke at the 2004 Consumer Goods Technology
Conference in Orlando, Fla. Additional Logility customers speaking at
the event included VF Corporation, Cannondale Bicycle Corporation and
Lindt & Sprungli.
-- Logility hosted another Supply Chain Power Hour webcast, "Service Parts
Smarts: Profit-driven Strategies for Service Parts Supply Chains," on
September 9. The webcast featured speakers from AMR Research, Remy
International and Logility, and addressed the challenges faced by
aftermarket service parts manufacturers, whose service organizations can
contribute 20-30% of total revenues and as much as 40% of profits.
-- During the summer and fall of 2004, Demand Solutions users in the
Northeast U.S. had the opportunity to participate in the 13th annual DS
Northeast User Conference as well as a series of local "Town Meetings."
One hundred forty-two DS users representing 65 companies participated in
these regional activities.
Products and Technology
-- Logility announced the dates for the Connections 2005: Catch the Wave-
Supply Chain ROI customer conference to be held March 16-18, 2005, in
Atlanta, GA., at the InterContinental Hotel in Buckhead. The event will
give attendees exposure to best practices from industry peers, insight
from leading supply chain experts and guidance for preparing their
businesses for the next wave of demand-driven supply chain improvements.
-- Start Magazine selected Logility for a 2004 Technology & Business Vision
Award, which honors leading-edge solution providers whose hardware or
software products have helped transform the manufacturing industry; and
Software Magazine named Logility to its Software 500 list of the world's
foremost software and services providers.
-- Logility announced a business alliance with Adjoined Consulting, an
industry-focused, full-service management consulting, technology and
outsourcing firm. The partnership offers companies operational best
practices hosting and consulting services for Logility Voyager
Solutions, including collaborative demand, inventory and replenishment
planning, global sourcing, and transportation and warehouse management.
-- Demand Management, Inc., a wholly owned subsidiary of Logility, re-
christened its flagship software suite from Demand Solutions to DS One.
The decision to rename the company's applications to DS One emphasizes
the power and flexibility of the software to deliver essential
functionality for the broad-based collaborative needs in today's demand
driven supply chains.
About Logility
With more than 1,100 customers worldwide, Logility is the leading provider
of collaborative supply chain planning solutions that help small, medium, large
and Fortune 1000 companies realize substantial bottom-line results in record
time. Logility Voyager Solutions feature performance monitoring capabilities in
a single Internet-based framework and provide supply chain visibility; demand,
inventory and replenishment planning; supply and global sourcing optimization;
transportation planning and execution; and warehouse management. Logility
customers include Bissell, Huhtamaki UK, Katun Corporation, McCain Foods, Mill's
Pride, Pernod Ricard, Rand McNally, Sigma Aldrich, and VF Corporation. Logility
is a majority owned subsidiary of American Software (Nasdaq: AMSWA). For more
information about Logility, call 1-800-762-5207 or visit http://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, 2004 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:
http://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.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
--------------------------------------------- ----------------------------------------
October 31, October 31,
Pct Pct
2004 2003 Chg. 2004 2003 Chg.
--------------- -------------- ------------- ------------- ------------- -----------
Revenues:
License $ 656 $ 1,174 (44%) $ 2,070 $ 2,285 (9%)
Services & other 1,148 1,281 (10%) 2,408 2,735 (12%)
Maintenance 3,027 2,712 12% 5,784 5,509 5%
-------- -------- ------- -------- -------- --------
Total Revenues 4,831 5,167 (7%) 10,262 10,529 (3%)
-------- -------- ------- -------- -------- --------
Cost of Revenues:
License 840 1,013 (17%) 1,700 1,969 (14%)
Services & other 588 667 (12%) 1,250 1,367 (9%)
Maintenance 632 459 38% 1,072 902 19%
-------- -------- ------- -------- -------- --------
Total Cost of Revenues 2,060 2,139 (4%) 4,022 4,238 (5%)
-------- -------- ------- -------- -------- --------
Gross Margin 2,771 3,028 (8%) 6,240 6,291 (1%)
-------- -------- ------- -------- -------- --------
Operating expenses:
Research and development 1,404 1,395 1% 2,735 2,760 (1%)
Less: capitalized development (711) (849) (16%) (1,381) (1,651) (16%)
Sales and marketing 1,779 1,599 11% 3,636 3,220 13%
General and administrative 805 726 11% 1,490 1,481 1%
Acquisition related
amortization of intangibles 38 -- nm 38 -- nm
-------- -------- ------- -------- -------- --------
Total operating expenses 3,315 2,871 15% 6,518 5,810 12%
-------- -------- ------- -------- -------- --------
Operating income(loss) (544) 157 nm (278) 481 nm
-------- -------- ------- -------- -------- --------
Other income 16 64 (75%) 127 110 15%
-------- -------- ------- -------- -------- --------
Income (loss) before income taxes (528) 221 nm (151) 591 nm
Income taxes -- -- -- -- -- --
-------- -------- ------- -------- -------- --------
Net Income (loss) $ (528) $ 221 nm $ (151) $ 591 nm
======== ======== ======= ======== ======== ========
Earnings(loss) per common share - Basic $ (0.04) $ 0.02 nm $ (0.01) $ 0.05 nm
======== ======== ======= ======== ======== ========
Earnings(loss) per common share - Diluted $ (0.04) $ 0.02 nm $ (0.01) $ 0.04 nm
======== ======== ======= ======== ======== ========
Weighted average common shares
Basic 13,013 13,105 13,052 13,119
Diluted 13,013 13,317 13,052 13,322
nm- not meaningful
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
October 31,
------------------------------
2004 2003
--------------- --------------
Cash and Short & Long term investments $ 20,996 $ 27,748
Accounts Receivable:
Billed 4,096 2,510
Unbilled 505 672
--------------- --------------
Total Accounts Receivable, net 4,601 3,182
Prepaids & Other Current Assets 1,877 372
Non-current Assets 15,540 7,926
--------------- --------------
Total Assets $ 43,014 $ 39,228
=============== ==============
Accounts Payable $ 470 $ 197
Other Current Liabilities 5,469 3,640
Deferred Revenues 5,695 4,213
Shareholders' Equity 31,380 31,178
--------------- --------------
Total Liabilities & Shareholders' Equity $ 43,014 $ 39,228
=============== ==============
SOURCE Logility, Inc.
-0- 11/29/2004
/CONTACT: Vincent C. Klinges, Chief Financial Officer 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