Exhibit 99.1
LOGILITY REPORTS THIRD QUARTER OF FISCAL YEAR 2005 RESULTS
REVENUES INCREASED 14% FOR THE QUARTER COMPARED TO LAST YEAR
ATLANTA, March 3 /PRNewswire-FirstCall/ -- Logility, Inc. (Nasdaq: LGTY), a
leading supplier of collaborative solutions to optimize the supply chain, today
announced financial results for the third quarter of fiscal year 2005.
Key financial highlights for Logility include:
- Software license fees for the quarter ended January 31, 2005 were $2.7
million, an increase of 6% over the third quarter of fiscal 2004;
- Services and other revenues for the quarter ended January 31, 2005 were
$1.2 million, an increase of 9% over the third quarter of fiscal 2004;
- Maintenance revenue fees for the quarter ended January 31, 2005 were $3.5
million, an increase of 22% over the third quarter of fiscal 2004;
- Total revenues for the quarter ended January 31, 2005 were $7.4 million,
an increase of 14% over the third quarter of fiscal 2004;
- Total cash and investments as of January 31, 2005 were $23.1 million, a
sequential increase of $2.1 million compared to October 31, 2004.
GAAP net income was $84,000 or $0.01 per fully diluted share for the third
quarter of fiscal 2005 compared to $1.1 million or $0.08 per fully diluted share
for the third quarter of fiscal 2004. Adjusted net income for the quarter ended
January 31, 2005, which excludes the net loss of Demand Management, was $628,000
or $0.05 per fully diluted share compared to $1.1 million or $0.08 for the same
period last year.
On September 30, 2004, Logility purchased certain assets and the
distribution channel of privately-held Demand Management, Inc. (DMI), a St.
Louis-based provider of supply chain planning systems marketed under the Demand
Solutions brand, for approximately $8.7 million in cash. The third quarter 2005
results include Demand Management's results. DMI reported a $544,000 loss for
the quarter. The loss was primarily due to the purchase accounting requirement
to fair value DMI's deferred maintenance which lowers the maintenance revenue
for GAAP reporting. For the third quarter ended January 31, 2005, DMI was
operating cash flow positive by approximately $750,000.
Total revenues for the nine months ended January 31, 2005 were $17.7 million
compared to $17.0 million for the same period last year. Software license fees
for both the nine months ended January 31, 2005 and the prior year were $4.8
million. Services and other revenues for the nine months ended January 31, 2005
were $3.6 million compared to $3.9 million for the same period last year.
Maintenance revenues for the nine months ended January 31, 2005 were $9.2
million compared to $8.3 million for the same period last year. For the nine
months ended January 31, 2005, the Company reported a GAAP net loss of $67,000,
or loss per share of $0.01 compared to a GAAP net income of approximately $1.6
million or $0.12 per fully diluted share for the same period in the prior year.
Adjusted net income for nine months ended January 31, 2005, which excludes the
impact of the Demand Management acquisition, was $764,000 or $0.06 per fully
diluted share compared to $1.6 million or $0.12 for the same period last year.
Total DMI revenues for the three months and nine months ended January 31, 2005
were $2.0 million and $2.4 million.
The Company is including adjusted net income and adjusted net income per
share in the summary financial information provided with this press release as
additional, supplemental information relating to its operating results. This
financial information is not in accordance with, or an alternative for, GAAP and
may be different from non-GAAP net income and non-GAAP per share measures used
by other companies. The company believes that this presentation of adjusted net
income and adjusted net income per share provides useful information to
investors regarding certain additional financial and business trends relating to
its financial condition and results of operations.
"We are pleased with Logility's performance during the quarter, adding 21
new customers and contributing a significant sequential increase in cash of $2.1
million over the prior quarter. Additionally, we are happy with our progress
integrating Demand Management, Inc. into the business," said J. Michael
Edenfield, Logility president and Chief Executive Officer. "Across both the
Logility Voyager Solutions(TM) and Demand Solutions(R) brands, our customers
realize the smart application of supply chain technology will increasingly drive
a competitive advantage through reduced costs and improved product
availability."
Highlights for the third fiscal quarter of 2005 include:
Customers
- Notable new and existing customers placing orders in the third quarter
include Associated Grocers of Florida, Brown Shoe, Eaton Corporation,
Hooker Furniture Corporation, Hyundai Motor Australia, Johnson Brothers,
Kentucky Derby Hosiery, Parker Hannifin, SAKS Incorporated and a major
household consumer products company.
- During the quarter, software license agreements were signed with
customers located in 11 countries including Australia, Brazil, Canada,
China, Germany, Indonesia, Ireland, Mexico, New Zealand, the United
Kingdom and the United States.
- Robert Horne Group, the UK's leading supplier of paper, board and
plastics to the visual communications industry, upgraded to Logility
Voyager Solutions Version 7.0 using minimal resources. The solution will
provide additional demand planning functionality including improved
collaboration among internal departments and with suppliers.
- AD Plastik, a Croatian plastics manufacturer that serves automotive and
consumer goods markets, implemented Logility Voyager Solutions for
improvements in manufacturing planning, inventory, labor reductions and
customer service.
- Smead Manufacturing Co., a leading manufacturer and distributor of paper
filing supplies and records management software, was named a finalist for
Managing Automation magazine's first annual Progressive Manufacturing
Awards for supply chain mastery. Smead used Logility Voyager Solutions to
support a significant growth in revenue while increasing inventory turns,
achieving higher customer order fill rates, increasing visibility of
available inventory, and improving collaboration with customers as well
as internal departments.
- In the Top 100 Consumer Goods Registry, an annual survey by Consumer
Goods Technology magazine, Logility supply chain solutions are used by 33
percent of the companies that made the cut. Logility Voyager Solutions or
Demand Solutions are used by:
* 60 percent of the top 10 health and pharmacy companies
* 45 percent of the top 20 consumer packaged goods companies
* 35 percent of the top 20 food companies
* 35 percent of the top 20 footwear and apparel companies
* 30 percent of the top 10 health and beauty companies
* 30 percent of the top 10 housewares and appliances companies
* 15 percent of the top 20 beverage companies
Products and Technology
- Logility announced general availability of Radio Frequency Identification
(RFID) capabilities in Logility Voyager WarehousePRO(R). The latest
release of Voyager WarehousePRO includes built-in support of RFID
technology at the carton, pallet, and container level. Logility's
built-in approach enables customers to implement and upgrade quickly,
limits custom integration, delivers immediate benefits and lays the
foundation for future expansion of RFID to supply chain planning
applications. RFID support is included in the standard WarehousePRO
product, and is available at no additional cost to Logility customers
active on maintenance programs.
- Demand Management, Inc., a wholly owned subsidiary of Logility, announced
the availability of Demand Solutions Collaborate for seamless integration
of supply chain information. The Web-based addition to DS One simplifies
collaboration between buyers and sellers to make demand- driven supply
networks a reality.
- Logility announced the details of Connections 2005: Catch the Wave-
Supply Chain ROI conference to be held March 16-18, 2005, in Atlanta,
Georgia, at the InterContinental Hotel in Buckhead. The event offers
attendees the opportunity to hear best practices from industry peers,
learn valuable tips for maximizing return on investment, and gain insight
from leading supply chain experts to help prepare for the next wave of
demand-driven supply chain improvement. Scheduled company speakers
include Remy International, Williamson-Dickie Manufacturing, SKF Italy,
Tiffany & Co., Potlatch, A.O. Smith, Logility and others.
- RIS News magazine named Logility to its Leaderboard 2004, an elite
gathering of the retail industry's top software vendors. The rankings are
based on results from a reader survey conducted in late 2004.
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. Demand
Solutions provide forecasting, demand planning and point- of-sale analysis for
maximizing profits in manufacturing, distribution and retail operations.
Logility customers include Avery Dennison Corporation, Bissell, BP (British
Petroleum), Huhtamaki UK, Hyundai Motor America, Katun Corporation, Leviton
Manufacturing Company, McCain Foods, Mill's Pride, Pernod Ricard, Rand McNally,
Remington Products Company, Sigma Aldrich, Under Armour Performance Apparel 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:
www.logility.com or E-mail: askLogility@logility.com.
Logility Voyager Solutions is a trademark of Logility and Demand Solutions
is a registered trademark of Demand Management. 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)
Third Quarter Ended Nine Months Ended
January 31, January 31,
------------------------------------ ------------------------------------
Pct Pct
2005 2004 Chg. 2005 2004 Chg.
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
License $ 2,721 $ 2,562 6% $ 4,791 $ 4,847 (1)%
Services & other 1,220 1,120 9% 3,628 3,855 (6)%
Maintenance 3,464 2,832 22% 9,248 8,341 11%
Total Revenues 7,405 6,514 14% 17,667 17,043 4%
Cost of Revenues:
License 1,311 1,076 22% 3,011 3,045 (1)%
Services & other 671 611 10% 1,921 1,978 (3)%
Maintenance 987 461 114% 2,059 1,363 51%
Total Cost of Revenues 2,969 2,148 38% 6,991 6,386 9%
Gross Margin 4,436 4,366 2% 10,676 10,657 0%
Operating expenses:
Research and development 1,591 1,337 19% 4,326 4,097 6%
Less: capitalized
development (703) (801) (12)% (2,084) (2,452) (15)%
Sales and marketing 2,126 1,985 7% 5,762 5,205 11%
General and administrative 1,309 901 45% 2,799 2,382 18%
Acquisition related
amortization of intangibles 79 -- nm 117 -- nm
Total operating expenses 4,402 3,422 29% 10,920 9,232 18%
Operating income(loss) 34 944 (96)% (244) 1,425 nm
Other income 50 109 (54)% 177 219 (19)%
Income (loss) before income
taxes 84 1,053 (92)% (67) 1,644 nm
Income tax provision -- -- -- -- -- --
Net Income (loss) $ 84 $ 1,053 (92)% $ (67) $ 1,644 nm
Earnings(loss) per common
share - Basic $ 0.01 $ 0.08 (88)% $ (0.01) $ 0.13 nm
Earnings(loss) per common
share - Diluted $ 0.01 $ 0.08 (88)% $ (0.01) $ 0.12 nm
Weighted average number of
common shares
Basic 12,963 13,111 13,023 13,117
Diluted 13,183 13,343 13,023 13,323
Reconciliation of Adjusted
Net Income:
Net Income (loss) $ 84 $ 1,053 $ (67) $ 1,644
Demand Management Acquisition (544) -- (831) --
Adjusted Net Income $ 628 $ 1,053 $ 764 $ 1,644
Adjusted Net Income per
Diluted Share $ 0.05 $ 0.08 $ 0.06 $ 0.12
nm- not meaningful
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
January 31,
-----------------------
2005 2004
---------- ----------
Cash and Short & Long term
investments $ 23,133 $ 29,370
Accounts Receivable:
Billed $ 5,498 3,142
Unbilled $ 696 1,166
Total Accounts Receivable, net $ 6,194 4,308
Prepaids & Other Current Assets $ 1,876 482
Non-current Assets $ 15,507 7,683
Total Assets $ 46,710 $ 41,843
Accounts Payable $ 525 $ 391
Other Current Liabilities $ 6,578 3,952
Deferred Revenues $ 8,128 5,138
Shareholders' Equity $ 31,479 32,362
Total Liabilities &
Shareholders' Equity $ 46,710 $ 41,843
SOURCE Logility, Inc.
-0- 03/03/2005
/CONTACT: 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)