Exhibit 99.1
LOGILITY REPORTS SECOND QUARTER OF FISCAL YEAR 2006 RESULTS RECORD OPERATING
EARNINGS DRIVEN BY 447% LICENSE FEE GROWTH
ATLANTA, Dec. 5 /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 2006.
Key financial highlights for Logility include:
- Software license fees for the quarter ended October 31, 2005 were $3.6
million, an increase of 447% over the second quarter of fiscal 2005;
- Services and other revenues for the quarter ended October 31, 2005 were
$1.3 million, an increase of 16% over the second quarter of fiscal 2005;
- Maintenance revenues for the quarter ended October 31, 2005 were $4.3
million, an increase of 44% over the second quarter of fiscal 2005;
- Total revenues for the quarter ended October 31, 2005 were $9.3 million,
an increase of 92% over the second quarter of fiscal 2005; and
- Operating earnings for the quarter ended October 31, 2005 were $1.3
million, compared to an operating loss of $544,000 for the second quarter
of fiscal 2005.
GAAP net earnings were $3.7 million or $0.28 earnings per fully diluted
share for the second quarter of fiscal 2006 compared to a net loss of $528,000
or $0.04 loss per basic share for the second quarter of fiscal 2005. Adjusted
net earnings for the quarter ended October 31, 2005, which excludes the
acquisition related intangibles costs, write-down of a minority investment and a
tax benefit were $1.5 million or $0.11 earnings per fully diluted share compared
to a loss of $428,000 or $0.03 loss per basic share for the same period last
year.
Total revenues for the six months ended October 31, 2005 were $17.2 million
or a 67% increase compared to the comparable period last year. Software license
fees for the six months period were $6.0 million or a 191% increase compared to
the same period last year. Services and other revenues were $2.8 million or a
16% increase compared to the same period last year. Maintenance revenues were
$8.4 million or a 45% increase compared to the same period last year. For the
six months ended October 31, 2005, the Company reported operating earnings of
approximately $2.0 million compared to an operating loss of $278,000 for the
same period last year. GAAP net earnings were approximately $4.6 million or
$0.34 per fully diluted share for the six months ended October 31, 2005 compared
to a net loss of $151,000 or $0.01 per basic share for the same period last
year. Adjusted net earnings year to date as of October 31, 2005, which excludes
the acquisition-related intangibles costs, write-down of a minority investment
and a tax benefit, were $2.5 million or $0.19 earnings per fully diluted share
compared to a loss of $51,000 or negligible loss per basic share for the same
period last year.
The second quarter and six-month fiscal 2005 financial data included only
the month of October 2005 for revenue and expenses from the Demand Management,
Inc. subsidiary acquired on September 30, 2004, whereas the entire three-month
and six-month periods in fiscal 2006 included revenue and expenses from Demand
Management.
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 $25.0 million.
"Logility's performance in the second quarter was outstanding. License fees
increased 447% and total revenues almost doubled compared to the same period
last year. We added 22 new customers and achieved record operating earnings of
$1.3 million," said J. Michael Edenfield, Logility president and chief executive
officer. "Our industry-leading solutions, deep domain expertise, strong customer
base and ability to deploy quickly, combined with our continued financial
strength and organizational stability, provide a solid foundation upon which
Logility will continue to deliver innovation and value for our customers."
"In today's global market, it's survival of the fittest. Those companies
that are able to become demand-driven and trim inefficiencies from their
manufacturing and distribution cycles in the face of competitive, price and
capacity demands will not only survive - they will thrive," continued Edenfield.
"Logility provides supply chain solutions that give small, medium, large and
Fortune 1000 companies the visibility they need to overcome global supply chain
challenges, reduce costs and improve service."
Highlights for the second fiscal quarter of fiscal 2006 include:
Customers:
- Notable new and existing customers placing orders with Logility in the
second quarter include: A.O. Smith Water Products, Cavendish Farms,
Hooker Furniture, Hughes Supply, Mendocino Forest Products, Murad,
Novar EDS, Ruiz Food Products, Shaw Industries, St. Michelle Wine and
Wrigley Chewing Gum Company (China) Ltd.
- During the quarter, software license agreements were signed with
customers located in seven countries including, Brazil, Canada, China,
Italy, Mexico and the United Kingdom, as well as the United States.
- Logility provided supply chain thought leadership during a standing room
only session on "Performance Management - An Important Link in your
Supply Chain" presented with Logility customer, A.O. Smith Water
Products, at the APICS 2005 International Conference and Exposition.
- Results from the most recent Logility customer satisfaction survey were
announced. The results indicated overall high approval of the Logility
customer support experience and provided insight into the key motivations
leading customers to upgrade to the latest version of Logility Voyager
Solutions(TM), including performance management, Sales and Operations
Planning, supply optimization, global sourcing and transportation
optimization.
- Logility announced Standard Motor Products' rollout of Logility Voyager
Solutions to meet new inventory management demands brought on by its
acquisition of the Engine Management Division of Dana Corporation. With
Logility Voyager Solutions, Standard Motor Products will be better able
to proactively monitor supply chain performance and automate
collaboration with key customers and suppliers.
- Aberdeen Group, a leading industry research firm, highlighted a Logility
aftermarket service parts customer in its recent "Best Practices in Sales
and Operations Planning" report. The Logility customer was selected for
their success in integrating demand planning, supply optimization and
reverse logistics. The customer uses Logility Voyager Solutions for
Demand Planning, Inventory Planning, Supply Planning and Global Sourcing
to help manage inventory levels and the challenges of their complex
global supply chain.
- Remy International received a 2005 Technology & Business award from Start
Magazine. The award honors manufacturers that have solved critical
business issues with the use of technology. Remy implemented Logility
Voyager Solutions 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.
Products and Technology:
- Demand Management, Inc. announced that Demand Solutions(R) Forecast
Management and Demand Solutions Requirements Planning are available for
the Microsoft SQL Server database, making the company's DS One
forecasting platform even more flexible.
- Logility announced Connections 2006: Your Ticket to Supply Chain Success
conference to be held March 15-16, 2006 in Nashville, Tennessee at the
Loews Vanderbilt Hotel. 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 success with
demand-driven supply chain initiatives.
- Logility held its latest Supply Chain Power Hour webcast on "Best
Practices in Sales and Operations Planning (S&OP)." The webcast helped
companies understand how S&OP best practices can help balance and
synchronize operational plans to achieve corporate objectives, stay
competitive, increase profitability, expand market share and drive
customer service excellence. Speakers participated from Logility and
Aberdeen Group.
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, 2005 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)
Second Quarter Ended Six Months Ended
October 31, October 31,
-------------------------------------- --------------------------------------
Pct Pct
2005 2004 Chg. 2005 2004 Chg.
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
License $ 3,589 $ 656 447% $ 6,025 $ 2,070 191%
Services & other 1,336 1,148 16% 2,783 2,408 16%
Maintenance 4,349 3,027 44% 8,369 5,784 45%
Total Revenues 9,274 4,831 92% 17,177 10,262 67%
Cost of Revenues:
License 918 840 9% 1,923 1,700 13%
Services & other 894 588 52% 1,766 1,250 41%
Maintenance 1,007 632 59% 1,934 1,072 80%
Total Cost of Revenues 2,819 2,060 37% 5,623 4,022 40%
Gross Margin 6,455 2,771 133% 11,554 6,240 85%
Operating expenses:
Research and development 1,741 1,404 24% 3,396 2,735 24%
Less: capitalized
development (616) (711) (13)% (1,233) (1,381) (11)%
Sales and marketing 2,493 1,779 40% 4,680 3,636 29%
General and administrative 1,489 805 85% 2,517 1,490 69%
Acquisition related
amortization of intangibles 87 38 nm 174 38 nm
Total operating expenses 5,194 3,315 57% 9,534 6,518 46%
Operating earnings 1,261 (544) nm 2,020 (278) nm
Interest income & Other, net 6 16 (63)% 149 127 17%
Income before income taxes 1,267 (528) nm 2,169 (151) nm
Income tax
provision/(benefit) (2,458) - - (2,425) - -
Net Earnings $ 3,725 $ (528) nm $ 4,594 $ (151) nm
Earnings per common share -
Basic $ 0.29 $ (0.04) nm $ 0.36 $ (0.01) nm
Earnings per common share -
Diluted $ 0.28 $ (0.04) nm $ 0.34 $ (0.01) nm
Weighted average number of
common shares
Basic 12,737 13,013 12,806 13,052
Diluted 13,206 13,013 13,354 13,052
Reconcilitaiton of Adjusted Net
Income:
Net Earnings $ 3,725 $ (528) $ 4,594 $ (151)
Acquisition related amortization of
intangibles 87 - 174 -
Write-down of minority investment 160 100 160 100
Income tax provision/(benefit) (2,458) - (2,425) -
Adjusted Net Earnings $ 1,514 $ (428) $ 2,503 $ (51)
Adjusted Net Earnings per Share $ 0.11 $ (0.03) $ 0.19 $ 0.00
nm- not meaningful
Consolidated Balance Sheet
Information
(in thousands)
October 31,
------------------------
2005 2004
----------- ----------
(Unaudited)
Cash and Short & Long term
investments $ 25,049 $ 20,996
Accounts Receivable:
Billed 4,843 4,096
Unbilled 1,744 505
Total Accounts Receivable, net 6,587 4,601
Prepaids & Other Current Assets 1,602 1,877
PP&E,net 448 260
Capitalized Software, net 6,138 6,263
Deferred Income Tax 4,996 -
Non-current Assets 7,942 9,017
Total Assets $ 52,762 $ 43,014
Accounts Payable $ 193 $ 470
Other Current Liabilities 7,679 5,467
Deferred Income Tax 6,546 -
Deferred Revenues 8,765 5,695
Shareholders' Equity 29,579 31,382
Total Liabilities &
Shareholders' Equity $ 52,762 $ 43,014
SOURCE Logility, Inc.
-0- 12/05/2005
/CONTACT: Vincent C. Klinges, Chief Financial Officer of Logility, Inc.,
+1-404-264-5477/
(AMSWA LGTY)