Exhibit 99.1
LOGILITY REPORTS FOURTH QUARTER OF FISCAL YEAR 2005 RESULTS
REVENUES INCREASED 31% FOR THE QUARTER COMPARED TO PRIOR YEAR
ATLANTA, June 9 /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, 2005.
Key financial highlights for Logility include:
* Software license fees for the quarter ended April 30, 2005 were $2.2
million, an increase of 22% over the fourth quarter of fiscal 2004;
* Services and other revenues for the quarter ended April 30, 2005 were
$1.7 million, an increase of 25% over the fourth quarter of fiscal 2004;
* Maintenance revenue fees for the quarter ended April 30, 2005 were $3.7
million, an increase of 40% over the fourth quarter of fiscal 2004;
* Total revenues for the quarter ended April 30, 2005 were $7.6 million, an
increase of 31% over the fourth quarter of fiscal 2004;
* Total cash and investments as of April 30, 2005 were $25.7 million, an
increase of $2.6 million compared to January 31, 2005.
GAAP net loss was $224,000 or $0.02 loss per share for the fourth quarter of
fiscal 2005 compared to net earnings of $62,000 or negligible earnings per fully
diluted share for the fourth quarter of fiscal 2004. Adjusted net earnings for
the quarter ended April 30, 2005, which excludes the acquisition related
intangibles costs and an asset impairment charge was $566,000 or $0.04 per share
compared to $62,000 or negligible earnings per fully diluted share 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. DMI reported a 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. Since the acquisition, DMI has generated over $650,000 in
operating cash flow as of April 30, 2005.
Total revenues for the twelve months ended April 30, 2005 were $25.0 million
compared to $22.8 million for the same period last year. Software license fees
for the twelve months ended April 30, 2005 were $6.7 million compared to $6.7
million for the prior year. Services and other revenues for the twelve months
ended April 30, 2005 were $5.3 million compared to $5.2 million for the same
period last year. Maintenance revenues for the twelve months ended April 30,
2005 were $13.0 million compared to $11.0 million for the same period last year.
For the twelve months ended April 30, 2005, the Company reported a GAAP net loss
of $549,000, or loss per share of $0.04 compared to a GAAP net earnings of
approximately $1.7 million or $0.13 per fully diluted share for the prior year.
Adjusted net earnings for twelve months ended April 30, 2005, which excludes the
acquisition related intangibles costs and an asset impairment charge was
$358,000 or $0.03 per share compared to $1.7 million or $0.13 for the same
period last year.
The Company is including adjusted net earnings and adjusted net earnings per
share in the summary financial information provided with this press release as
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 earnings and non-GAAP per share measures used by
other companies. The Company believes that this presentation of adjusted net
earnings and adjusted net earnings per share provides useful information to
investors regarding certain additional financial and business trends relating to
its financial condition and results of operations.
The overall financial condition of the Company remains strong with cash and
investments of approximately $25.7 million and no debt. The Company's cash and
investment position increased approximately $2.6 million compared to January 31,
2005.
"We are pleased with our revenue growth of 31% for the fourth quarter, the
addition of 13 new customers and a significant sequential increase in cash and
investments of $2.6 million over the prior quarter," said J. Michael Edenfield,
Logility president and Chief Executive Officer. "Our strong balance sheet, solid
cash position, overall organizational stability and market- leading supply chain
solutions provide an excellent environment to continue our development of
innovative solutions that simplify complex supply chain challenges and
consistently deliver fast deployment to drive rapid return on investment for our
customers."
"Logility offers a wide range of supply chain applications targeted at the
specific needs of distribution-intensive manufacturing, wholesale and retail
organizations seeking to reduce costs and increase revenues," stated Edenfield.
"Our goal is to help customers take costs out of their supply chains by
streamlining the sales and operations planning process, synchronizing supply
with demand, improving forecast accuracy, automating transportation and
warehouse operations, and providing greater visibility to enable better
decision-making."
Highlights for the fourth fiscal quarter and fiscal 2005 include:
Customers
* Notable new and existing customers placing orders with Logility in the
fourth quarter include Able Distribution Company, Carole Hochman Design
Group, Farley's & Sathers Candy Company, Inc., Hamilton Beach, Honeywell,
JS Products, Komatsu, Metal Building Systems, Republic Beverage Company
and XanGo.
* During the quarter, software license agreements were signed with
customers located in 10 countries including Australia, Belgium, China,
Germany, Italy, Malaysia, Poland, Switzerland, the United Kingdom, and
the United States.
* Logility had approximately 60 customers "go live" with new deployments or
significant upgrades of Logility Voyager Solutions during fiscal year
2005. This impressive number of deployments underscores Logility's
ability to implement rapidly to accelerate business results for
customers.
* In February 2005, supply chain professionals gathered in San Antonio for
the 18th Annual Demand Management Association Conference. The meeting
included informative user presentations, industry briefings and the
introduction of new product features for the DS One product suite. The
conference proved to be an excellent forum for Mike Edenfield, Logility
president and CEO, to meet with a large group of Demand Solutions users
and discuss Logility's vision for the future. The Demand Management
Association is the organization for users of Demand Solutions software
from Demand Management, Inc. (DMI), a wholly owned subsidiary of
Logility.
* The Logility Connections 2005: Catch the Wave-Supply Chain ROI conference
occurred March 16-18 in Atlanta and offered 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.
* The Logility International User Group Conference took place in
Manchester, UK, in April 2005. The event included features from the
Robert Horne Group, which discussed its swift upgrade to Logility Voyager
Solutions 7.0; and Honeywell, which discussed using Logility Voyager
Collaborate for sales and operations planning.
* Logility named Remy International, North America's largest producer of
remanufactured starters and alternators for the automotive aftermarket,
as the recipient of the 2005 Sailing to New Heights with Logility Award
for supply chain excellence. This award is the highest honor given
annually to the Logility customer that has leveraged innovation and
collaboration to drive measurable business improvements and supply chain
excellence through the deployment of Logility Voyager Solutions(TM). Remy
implemented Logility Voyager Solutions in 2004 to reduce demand
volatility and improve factory scheduling; generate a one-number forecast
for its business; decrease inventory; and streamline the sales and
operations planning process.
* Logility presented 2005 Leadership Awards to the following companies:
- Nestle Purina Petcare, a leading manufacturer of dry and canned dog
food, dry and canned cat food and cat box filler in the United
States, has used Logility Voyager Solutions to improve payment and
audit of carrier freight bills while reducing costs. The company
deployed Logility Voyager Transportation Planning and Management at
its plants last year.
- Robert Horne Group, the UK's leading supplier of paper, board and
plastics to the visual communications industry, has used Logility
Voyager Solutions to plan more effectively and operate more
efficiently. Logility was live in less than seven weeks, and the
deployment paid for itself in less than three months, delivering an
immediate 15% reduction in stock costs, and a current total 30%
reduction in stock costs.
- Tiffany & Co., the internationally renowned retailer, designer and
manufacturer of fine jewelry, timepieces and tabletop, has used
Logility Solutions to reduce demand variability and increase
forecast accuracy.
- The Coleman Company, Inc., a leading manufacturer, marketer and
distributor of recreational, camping and outdoor products, has used
Logility Voyager Solutions to reduce transportation costs, improve
customer service and on-time deliveries; and provide more consistent
lower-cost carrier selection.
- Williamson-Dickie Manufacturing, a privately held global
manufacturer of work wear, has used Logility Voyager Solutions to
improve forecast accuracy, lower supply chain cost, and support a
sales and operations planning process.
* RFT S.p.A., a division of Swedish-based SKF, a leading global provider of
rolling bearings and seals with 80 manufacturing sites worldwide, sales
in 70 countries and 15,000 worldwide distributors and dealers,
implemented Logility Voyager Solutions to improve manufacturing planning,
decrease inventory levels and accelerate planning time.
* The Coleman Company, Inc., manufacturer and distributor of products for
camping, backpacking, tailgating, backyard grilling and other outdoor
leisure-time activities, extended its use of Logility Voyager Solutions
to include the latest version of Transportation Planning and Management
with Internet-enabled carrier collaboration. The Coleman Company,
Inc., implemented the software on budget and on time in under five
months.
Products and Technology
* Logility unveiled Logility Voyager Solutions 7.5 to attendees at
Connections 2005. The latest version, which will be commercially
available in summer 2005, includes enhancements to help distribution-
intensive companies use the Internet to gain visibility of key metrics;
manage dynamic global supply chain activities; support radio frequency
identification (RFID) initiatives; optimize transportation operations;
and accelerate sales and operations planning (S&OP) processes. Enhanced
performance management capabilities are embedded across all areas of
Logility Voyager Solutions. Key functionality by business process area
includes:
- Demand chain planning-enhanced Web-based forecast management,
forecast modeling, life cycle planning and time-phased safety stock
methods
- Supply chain planning-expanded load optimization and shelf live
capabilities, and new plant level KPIs and alerts
- Transportation planning and management-additional shipment
planning and execution features
- Built-in RFID support, warehouse management additions and support
for Lightweight Directory Access Protocol (LDAP)
For more detailed information, please reference the March 17, 2005 press
release, Logility Voyager Solutions 7.5 Debut at Connections 2005.
About Logility
With more than 1,100 customers worldwide, Logility is a 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, 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
challenges and risks associated with integration of acquired product lines and
companies; 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)
Fourth Quarter Ended Twelve Months Ended
April 30, April 30,
-------------------------------- --------------------------------
Pct Pct
2005 2004 Chg. 2005 2004 Chg.
-------- -------- -------- -------- -------- --------
Revenues:
License $ 2,216 $ 1,809 22% $ 6,717 $ 6,656 1%
Services & other 1,653 1,324 25% 5,281 5,179 2%
Maintenance 3,721 2,650 40% 12,969 10,991 18%
Total Revenues 7,590 5,783 31% 24,967 22,826 9%
Cost of Revenues:
License 954 1,009 (5)% 3,965 4,054 (2)%
Services & other 841 654 29% 2,762 2,632 5%
Maintenance 975 417 134% 3,034 1,780 70%
Total Cost of Revenues 2,770 2,080 33% 9,761 8,466 15%
Gross Margin 4,820 3,703 30% 15,206 14,360 6%
Operating expenses:
Research and development 1,594 1,311 22% 5,920 5,408 9%
Less: capitalized
development (666) (840) (21)% (2,750) (3,292) (16)%
Sales and marketing 2,316 2,034 14% 8,046 7,239 11%
General and administrative 1,143 820 39% 3,942 3,202 23%
Acquisition related
amortization of intangibles 87 - nm 204 - nm
Charge for impaired asset 703 - nm 703 - nm
Total operating expenses 5,177 3,325 56% 16,065 12,557 28%
Operating income (loss) (357) 378 nm (859) 1,803 nm
Other income (expense) 139 (316) nm 316 (97) nm
Income (loss) before income
taxes (218) 62 nm (543) 1,706 nm
Income tax provision 6 - - 6 - -
Net Earnings (loss) $ (224) $ 62 nm $ (549) $ 1,706 nm
Earnings(loss) per common
share - Basic $ (0.02) $ - nm $ (0.04) $ 0.13 nm
Earnings(loss) per common
share - Diluted $ (0.02) $ - nm $ (0.04) $ 0.13 nm
Weighted average number of
common shares
Basic 12,966 13,103 13,009 13,120
Diluted* 12,966 13,383 13,009 13,391
Reconciliation of Adjusted Net
Income:
Net Earnings (loss) $ (224) $ 62 $ (549) $ 1,706
Charge for impaired asset 703 - 703 -
Acquisition related
amortization of intangibles 87 - 204 -
Adjusted Net Earnings $ 566 $ 62 $ 358 $ 1,706
Adjusted Net Earnings per
Share $ 0.04 $ - $ 0.03 $ 0.13
* Diluted weighted average common shares outstanding are not included in the
three and twelve months ended April 30, 2005 calculation due to the
anti-dilutive effect of the net loss.
nm - not meaningful
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
April 30,
-----------------------
2005 2004
---------- ----------
Cash and Short & Long term investments $ 25,738 $ 30,831
Accounts Receivable:
Billed 4,228 3,166
Unbilled 1,252 813
Total Accounts Receivable, net 5,480 3,979
Prepaids & Other Current Assets 1,619 466
Non-current Assets 14,798 7,092
Total Assets $ 47,635 $ 42,368
Accounts Payable $ 352 $ 131
Other Current Liabilities 6,675 4,094
Deferred Revenues 9,605 5,869
Shareholders' Equity 31,003 32,274
Total Liabilities & Shareholders' Equity $ 47,635 $ 42,368
SOURCE Logility, Inc.
-0- 06/09/2005
/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 /