Exhibit 99.1
LOGILITY REPORTS THIRD QUARTER OF FISCAL YEAR 2006 RESULTS
Record Revenues and Second Consecutive Quarter of Record Operating Earnings
Driven by 65% Growth in License Fees
ATLANTA, March 6 /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 2006.
Key financial highlights for Logility include:
- Software license fees for the quarter ended January 31, 2006 were $4.0
million, an increase of 65% over the third quarter of fiscal 2005;
- Services and other revenues for the quarter ended January 31, 2006 were
$1.4 million, an increase of 11% over the third quarter of fiscal 2005;
- Maintenance revenues for the quarter ended January 31, 2006 were $4.7
million, an increase of 36% over the third quarter of fiscal 2005;
- Total revenues for the quarter ended January 31, 2006 were a record $10.1
million, an increase of 41% over the third quarter of fiscal 2005; and
- Operating earnings for the quarter ended January 31, 2006 were a record
$2.2 million, compared to an operating loss of $224,000 for the third
quarter of fiscal 2005.
GAAP net earnings were $1.9 million or $0.14 earnings per fully diluted
share for the third quarter of fiscal 2006 compared to a net loss of $174,000 or
$0.01 loss per basic share for the third quarter of fiscal 2005. Adjusted net
earnings for the quarter ended January 31, 2006, which exclude acquisition
related intangibles costs and a tax expense, were $1.9 million or $0.15 earnings
per fully diluted share, compared to a loss of $95,000 or $0.01 loss per basic
share for the same period last year.
Total revenues for the nine months ended January 31, 2006 were $27.2
million, a 57% increase compared to the comparable period last year. Software
license fees for the nine month period were $10.0 million, a 123% increase
compared to the same period last year. Services and other revenues were $4.1
million, a 14% increase compared to the same period last year. Maintenance
revenues were $13.1 million, a 41% increase compared to the same period last
year. For the nine months ended January 31, 2006, the Company reported record
operating earnings of approximately $4.2 million compared to an operating loss
of $502,000 for the same period last year. GAAP net earnings were approximately
$6.5 million or $0.49 per fully diluted share for the nine months ended January
31, 2006, compared to a net loss of $325,000 or $0.02 loss per basic share for
the same period last year. Adjusted net earnings year to date as of January 31,
2006, which excludes acquisition-related intangibles costs, write-down of a
minority investment and a net tax benefit, were $5.0 million or $0.38 earnings
per fully diluted share compared to a loss of $108,000 or $0.01 loss per basic
share for the same period last year.
The nine-month fiscal 2005 financial data included only the months of
October 2004 through January 2005 for revenue and expenses from the Demand
Management, Inc. subsidiary acquired by the Company on September 30, 2004,
whereas the entire nine-month period 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 $26.7 million, an increase of $1.7 million compared
to October 31, 2005 and an increase of $3.6 million compared to January 31,
2005.
"Logility's performance during the third quarter was outstanding. We
delivered operating earnings of $2.2 million for the quarter which marked our
second consecutive quarter of record operating earnings. License fees increased
an impressive 65% compared to the same period last year and contributed to
record total revenues of $10.1 million for the quarter," said J. Michael
Edenfield, Logility president and chief executive officer. "A number of factors
are working together to contribute to our positive results. The most pressing
business driver is supply chain globalization, which is compelling many
companies to invest in their supply chain system infrastructures. While the
transition to offshore manufacturing may reduce costs, it significantly extends
lead times and puts considerably more focus and less transparency on supply
chain operations."
"The increased visibility, discipline and efficiency provided by Logility's
supply chain solutions allow manufacturing, wholesale, and specialty retail
organizations the opportunity to significantly improve cash flow, reduce
inventory, increase supply chain responsiveness and accelerate the sales and
operations planning process," continued Edenfield.
Highlights for the third fiscal quarter of fiscal 2006 include:
Customers:
- Notable new and existing customers placing orders with Logility in the
third quarter include: A.O. Smith, Dawn Foods, Fabricas de Calzado
Andrea, Games Workshop Ltd., Herbalife International, Infantino,
Klaussner Furniture Corporation, Pfizer, Plumbers Supplies of
Australia, Remy International, School Specialty, Tyco Safety Products,
Umbra Ltd., and VWR International.
- During the quarter, software license agreements were signed with
customers located in nine countries including: Australia, Belgium,
Canada, Germany, Malaysia, Mexico, New Zealand, the United Kingdom, as
well as the United States.
- Logility announced that Hughes Supply, a leading distributor of
construction, repair and maintenance-related products, selected Logility
Voyager Solutions to manage its distribution-centric supply chain,
improve visibility, and enable the organization to evolve into a more
demand-driven enterprise.
- Consumer Goods Technology magazine recognized Logility customers as
industry leaders in the Consumer Goods Registry which defines the top
revenue performers across Food, Beverage, Apparel, Packaged Goods, and
other verticals. Eight of the top 25 companies recognized were Logility
customers.
- According to the Consumer Goods Technology Top 100 Registry published by
Consumer Goods Technology magazine, the Demand Solutions forecasting and
demand planning software from Demand Management, Inc. is used by
one-third of the largest CPG companies. Demand Solutions is used by four
out of the top 20 food companies and four of the top 20 footwear/apparel
brand owners. In the healthcare/pharmacy and housewares/appliances
categories, Demand Solutions claims half of all major producers as
current customers.
- Logility announced the details of Connections 2006: Your Ticket to Supply
Chain Success conference to be held March 15-17, 2006 in Nashville, TN.
Scheduled speakers include representatives from AMR Research, Associated
Grocers of Florida, Malt-O-Meal, Remy International, Shaw Industries,
Sony, Standard Motor Products, VWR International, Logility and others.
Products and Technology:
- Logility was named a SAP(R) Business One Partner to provide supply chain
solutions for the small and midsize business market in the United States.
Logility will integrate its Demand Solutions application suite with SAP
Business One to drive supply chain improvements for small and midsize
businesses (SMB). Demand Solutions will extend the core business
automation capabilities of SAP Business One and provide critical supply
chain expertise to help customers predict future demand and make informed
decisions to optimize inventory turns, customer service levels and
profitability.
- Food Logistics magazine recognized Logility in the FL 100, an annual
listing of the Top 100 technology suppliers to the food industry, for the
second consecutive year.
- Logility provided supply chain thought leadership during a recent Supply
Chain Power Hour webcast "S&OP: What's Hot this Winter." The webcast
featured speakers from AMR Research and Logility, who discussed the
latest S&OP trends and innovations.
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 is a registered trademark and Logility Voyager Solutions is a
trademark of Logility. 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
2006 2005 Chg. 2006 2005 Chg.
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
License $ 4,000 $ 2,431 65% $ 10,026 $ 4,501 123%
Services & other 1,352 1,220 11% 4,135 3,628 14%
Maintenance 4,698 3,464 36% 13,067 9,248 41%
Total Revenues 10,050 7,115 41% 27,228 17,377 57%
Cost of Revenues:
License 652 1,311 (50)% 2,570 3,011 (15)%
Services & other 811 671 21% 2,577 1,921 34%
Maintenance 1,159 987 17% 3,092 2,059 50%
Total Cost of Revenues 2,622 2,969 (12)% 8,239 6,991 18%
Gross Margin 7,428 4,146 79% 18,989 10,386 83%
Operating expenses:
Research and development 1,787 1,591 12% 5,183 4,326 20%
Less: capitalized
development (537) (703) (24)% (1,771) (2,084) (15)%
Sales and marketing 2,841 2,094 36% 7,522 5,730 31%
General and administrative 1,077 1,309 (18)% 3,593 2,799 28%
Acquisition related
amortization of
intangibles 88 79 11% 263 117 125%
Total operating expenses 5,256 4,370 20% 14,790 10,888 36%
Operating earnings (loss) 2,172 (224) nm 4,199 (502) nm
Interest income
& other, net 224 50 348% 373 177 111%
Income (loss) before
income taxes 2,396 (174) nm 4,572 (325) nm
Income tax
provision/(benefit) 541 - - (1,884) - -
Net Earnings (loss) $ 1,855 $ (174) nm $ 6,456 $ (325) nm
Earnings per common share:
Earnings (loss) per common
share - Basic $ 0.15 $ (0.01) nm $ 0.50 $ (0.02) nm
Earnings (loss) per common
share - Diluted $ 0.14 $ (0.01) nm $ 0.49 $ (0.02) nm
Weighted average number of common shares:
Basic 12,787 12,963 12,799 13,023
Diluted 13,172 12,963 13,198 13,023
Reconciliation of Adjusted
Net Income:
Net Earnings (loss) $ 1,855 $ (174) $ 6,456 $ (325)
Acquisition related
amortization of intangibles 88 79 263 117
Writedown of minority
investment - - 160 100
Income tax
provision/(benefit) - - (1,884) -
Adjusted Net Earnings (loss) $ 1,943 $ (95) $ 4,995 $ (108)
Adjusted Net Earnings
(loss) per Share $ 0.15 $ (0.01) $ 0.38 $ (0.01)
nm - not meaningful
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
January 31,
-----------------------
2006 2005
---------- ----------
Cash and Short & Long term
investments $ 26,700 $ 23,133
Accounts Receivable:
Billed 7,315 5,498
Unbilled 1,317 696
Total Accounts Receivable, net 8,632 6,194
Prepaids & Other Current Assets 2,701 1,717
PP&E, net 460 325
Capitalized Software, net 6,449 6,409
Deferred Income Taxes 1,806 -
Non-current Assets 7,829 8,932
Total Assets $ 54,577 $ 46,710
Accounts Payable $ 255 $ 525
Other Current Liabilities 8,013 6,545
Deferred Revenues 10,012 8,418
Deferred Income Taxes - Long Term -
Due to ASI 4,228 -
Shareholders' Equity 32,069 31,222
Total Liabilities &
Shareholders' Equity $ 54,577 $ 46,710
SOURCE Logility, Inc.
-0- 03/06/2006
/CONTACT: Financial, 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 /
_