Exhibit 99.1
LOGILITY REPORTS SECOND QUARTER OF FISCAL YEAR 2007 RESULTS
OPERATING EARNINGS INCREASE 17% DRIVEN BY 8% GROWTH IN REVENUES
ATLANTA, Dec. 7 /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 2007.
Key Second quarter financial highlights include:
- Total revenues for the quarter ended October 31, 2006 were $10.0 million,
an increase of 8% over the second quarter of fiscal 2006;
- Software license fees for the quarter ended October 31, 2006 were $3.3
million, a decrease of 7% over the second quarter of fiscal 2006;
- Services and other revenues for the quarter ended October 31, 2006 were
$1.6 million, an increase of 19% over the second quarter of fiscal 2006;
- Maintenance revenues for the quarter ended October 31, 2006 were $5.1
million, an increase of 17% over the second quarter of fiscal 2006;
- Operating earnings for the quarter ended October 31, 2006 were $1.5
million, an increase of 17% compared to operating earnings of $1.3 million
for the second quarter of fiscal 2006; and
- Pretax earnings for the quarter ended October 31, 2006 were $1.9 million,
an increase of 50% compared to pretax earnings of $1.3 million for the
second quarter of fiscal 2006.
GAAP net earnings were $1.1 million or $0.08 earnings per fully diluted
share for the second quarter of fiscal 2007 compared to net earnings of $3.7
million or $0.28 earnings per fully diluted share for the second quarter of
fiscal 2006. The quarter ended October 31, 2006 net earnings were impacted by an
effective tax rate of 41.5% compared to a tax benefit of $2.5 million recorded
in the same quarter in the prior year. Adjusted net earnings, which exclude
stock option compensation and acquisition related amortization of intangibles
expense for the quarter ended October 31, 2006 were $1.3 million or $0.10
earnings per fully diluted share, compared to adjusted net earnings for the
quarter ended October 31, 2005 of $993,000 or $0.08 earnings per fully diluted
share for the same period last year, which includes an income tax expense and
excludes acquisition related amortization of intangibles expense, an income tax
benefit and a write-down of minority investment.
Total revenues for the six months ended October 31, 2006 were $19.6 million
or a 14% increase compared to the comparable period last year. Software license
fees for the six months period were $6.6 million or a 10% increase compared to
the same period last year. Services and other revenues were $3.0 million or an
8% increase compared to the same period last year. Maintenance revenues were
$10.0 million or a 19% increase compared to the same period last year. For the
six months ended October 31, 2006, the Company reported operating earnings of
approximately $2.7 million or a 34% increase compared to operating earnings of
$2.0 million for the same period last year.
GAAP net earnings were approximately $2.0 million or $0.15 per fully diluted
share for the six months ended October 31, 2006 compared to net earnings of $4.6
million or $0.34 per fully diluted share for the same period last year. Adjusted
net earnings year to date as of October 31, 2006, which excludes stock option
compensation expense and acquisition related amortization of intangibles, were
$2.4 million or $0.18 earnings per fully diluted share compared to net earnings
of $1.6 million or $0.12 earnings per fully diluted share the same period last
year, which includes an income tax expense and excludes acquisition related
amortization of intangibles expense, an income tax benefit and a write-down of
minority investment.
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 $29.8 million as of October 31, 2006. This is
approximately a $1.3 million sequential increase in cash and investment compared
to July 31, 2006 and approximately a $4.8 million increase compared to October
31, 2005.
"We are pleased with Logility's performance during the quarter, adding 32
new customers, growing revenues and increasing operating income," said J.
Michael Edenfield, Logility president and chief executive officer. "We were
somewhat disappointed in license fees in the second quarter. However, for the
last three fiscal years, license fees have been significantly higher during the
second half of the year when compared to the first half and we expect that trend
to continue this year."
"The goal of globalization is to drive more value through the supply chain.
That means companies need to clearly understand what benefits a technology
solution will deliver and how long it will take to realize those benefits,"
continued Edenfield. "Across both the Logility Voyager Solutions and Demand
Solutions brands, our customers achieve a rapid ROI and gain a competitive
advantage through reduced supply chain costs and improved product availability."
Highlights for the second quarter of fiscal 2007 include:
Customers:
- Notable new and existing customers placing orders with Logility in the
second quarter include: American Racing Equipment, Anvil International,
East African Breweries Ltd., Everlast Worldwide, Ferrero Australia PTY,
Handgards, Home Depot Mexico, Kemira OyJ, Mizuno USA, Snyders of Hanover,
The Heat Group PTY, Thomson Learning, and Tyco Healthcare.
- During the quarter, software license agreements were signed with customers
located in 12 countries including; Argentina, Australia, Belgium, Canada,
China, Denmark, Germany, Mexico, New Zealand, South Africa, the United
Kingdom, and the United States.
- Logility customer, Shaw Industries Group, Inc. received the prestigious
2006 Technology & Business Award for excellence in the Consumer Goods
industry from Start-IT Magazine. The award honors manufacturers that have
helped their businesses succeed by overcoming a challenge or solving
critical business issues through the use of leading-edge technology.
- Logility received outstanding customer satisfaction and loyalty ratings in
a recent survey conducted by Porter Research. In overall customer
satisfaction, Logility scored 100% which was higher than Porter's
Benchmark Satisfaction Metric of 91%. Logility customers also rated the
overall Logility relationship as 100% positive compared to Porter's
Benchmark Referenceable Metric of 86%. Based on the Porter Model for
Customer Loyalty, Logility customers appeared to be the most satisfied
with the customer service they get from Logility.
- Logility continued its thought leadership initiative during a recent
Supply Chain Power Hour: "Inventory Management: Tee Off Supply Chain
Success." The webcast featured speakers from the AberdeenGroup and
Logility.
Products and Technology:
- Baseline magazine ranked Logility in the Top 25 of its "50 Fastest-
Growing Software Companies" list. The magazine identifies the 50 companies
that have experienced the quickest near-term growth out of a list of 304
publicly held software companies and then ranks them based on year-to-year
revenue growth from 2004 to 2005, or the closest 12- month periods within
a quarter.
- Logility was named one of Start-IT magazine's Hottest Companies of 2006.
Chosen by Start-IT editors, the technology providers named to the Hottest
Companies list target the manufacturing industry and have shown good
financial results, important client wins, and significant events and
accomplishments during the past year that help set the company apart from
the competition.
- Software magazine included Logility in the "Software 500," a list of the
world's foremost software and services providers. Additionally, Logility
was featured in the list of Top 10 Software Companies ($30- $100 million
in revenue) with the highest revenue growth in 2006.
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, 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, 2006 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, Inc., a wholly-owned subsidiary of Logility, Inc. Other products
mentioned in this document are registered, trademarked or service marked by
their respective owners.
LOGILITY, INC.
Consolidated Statements of Operations Information
(In thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
October 31, October 31,
------------------------------ ------------------------------
Pct Pct
2006 2005 Chg. 2006 2005 Chg.
-------- -------- -------- -------- -------- --------
Revenues:
License $ 3,343 $ 3,590 (7)% $ 6,644 $ 6,026 10%
Services & other 1,587 1,336 19% 3,002 2,783 8%
Maintenance 5,089 4,349 17% 9,966 8,369 19%
Total Revenues 10,019 9,275 8% 19,612 17,178 14%
Cost of Revenues:
License 1,497 913 64% 2,874 1,918 50%
Services & other 837 894 (6)% 1,691 1,766 (4)%
Maintenance 1,220 1,006 21% 2,446 1,933 27%
Total Cost of Revenues 3,554 2,813 26% 7,011 5,617 25%
Gross Margin 6,465 6,462 0% 12,601 11,561 9%
Operating expenses:
Research and development 1,762 1,741 1% 3,523 3,396 4%
Less: capitalized
development (587) (617) (5)% (1,183) (1,234) (4)%
Sales and marketing 2,426 2,494 (3)% 4,932 4,681 5%
General and administrative 1,297 1,488 (13)% 2,439 2,516 (3)%
Acquisition related
amortization of intangibles 87 88 (1)% 175 175 0%
Total Operating Expenses 4,985 5,194 (4)% 9,886 9,534 4%
Operating Earnings 1,480 1,268 17% 2,715 2,027 34%
Interest Income & Other, Net 427 6 nm 770 149 417%
Income Before Income Taxes 1,907 1,274 50% 3,485 2,176 60%
Income Tax Benefit/(Expense) (792) 2,458 nm (1,448) 2,425 nm
Net Earnings $ 1,115 $ 3,732 (70)% $ 2,037 $ 4,601 (56)%
Earnings per common share:
Earnings Per Common Share -
Basic $ 0.09 $ 0.29 (69)% $ 0.16 $ 0.36 (56)%
Earnings Per Common Share -
Diluted $ 0.08 $ 0.28 (71)% $ 0.15 $ 0.34 (56)%
Weighted Average Number of
Common Shares:
Basic 12,896 12,737 12,896 12,806
Diluted 13,232 13,206 13,253 13,354
Reconciliation of Adjusted Net
Earnings:
GAAP Net Earnings $ 1,115 $ 3,732 $ 2,037 $ 4,601
Acquisition related
amortization of intangibles 87 88 175 175
Stock option expense 103 - 203 -
Write-down of minority
investment - 160 - 160
Excludes Income tax benefit - (2,458) - (2,425)
Includes Income tax expense (529) (903)
Adjusted net earnings $ 1,305 $ 993 31% $ 2,415 $ 1,608 50%
Adjusted Net Earnings
per Share $ 0.10 $ 0.08 25% $ 0.18 $ 0.12 50%
nm- not meaningful
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
October 31,
-------------------
2006 2005
-------- --------
Cash and Short & Long-term investments $ 29,799 $ 25,048
Accounts Receivable:
Billed 7,522 4,843
Unbilled 1,976 1,736
Total Accounts Receivable, net 9,498 6,579
Deferred Tax Assets - Short Term 2,288 135
Prepaids & Other Current Assets 1,837 1,603
PP&E, net 464 449
Capitalized Software, net 6,185 6,138
Goodwill 5,809 5,809
Other Intangibles, net 1,525 1,913
Deferred Tax Assets - Long Term - 2,716
Non-current Assets 76 220
Total Assets $ 57,481 $ 50,610
Accounts Payable $ 382 $ 193
Other Current Liabilities 7,435 7,665
Deferred Revenues 12,608 8,765
Current Liabilities 20,425 16,623
Deferred Income Taxes - Long Term 951 -
Deferred Income Taxes - Long Term
- Due to ASI - 4,403
Shareholders' Equity 36,105 29,584
Total Liabilities &
Shareholders' Equity $ 57,481 $ 50,610
SOURCE Logility, Inc.
-0- 12/07/2006
/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 /
(LGTY AMSWA)