Exhibit 99.1
LOGILITY REPORTS THIRD QUARTER OF FISCAL YEAR 2007 RESULTS
RECORD OPERATING EARNINGS INCREASE 22% DRIVEN BY RECORD REVENUES WHICH GREW
12% WHEN COMPARED TO THE PRIOR YEAR
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 2007.
Key Third quarter financial highlights include:
* Total revenues for the quarter ended January 31, 2007 were a record
$11.3 million, an increase of 12% over the third quarter of fiscal 2006
and increased 13% compared to the quarter ended October 31, 2006;
* Software license fees for the quarter ended January 31, 2007 were $3.9
million, a decrease of 3% over the third quarter of fiscal 2006 and
increased 17% compared to the quarter ended October 31, 2006;
* Services and other revenues for the quarter ended January 31, 2007 were
$1.8 million, an increase of 31% over the third quarter of fiscal 2006
and increased 12% compared to the quarter ended October 31, 2006;
* Maintenance revenues for the quarter ended January 31, 2007 were $5.6
million, an increase of 20% over the third quarter of fiscal 2006 and
increased 10% compared to the quarter ended October 31, 2006;
* Operating earnings for the quarter ended January 31, 2007 were a record
$2.7 million, an increase of 22% compared to operating earnings of $2.2
million for the third quarter of fiscal 2006; and
* Pretax earnings for the quarter ended January 31, 2007 were $3.1
million, an increase of 30% compared to pretax earnings of $2.4 million
for the third quarter of fiscal 2006.
GAAP net earnings were $2.0 million or $0.15 earnings per fully diluted
share for the third quarter of fiscal 2007 compared to net earnings of $1.9
million or $0.14 earnings per fully diluted share for the third quarter of
fiscal 2006. Adjusted net earnings, which exclude stock option compensation and
acquisition related amortization of intangibles expense for the quarter ended
January 31, 2007 were $2.2 million or $0.16 earnings per fully diluted share,
compared to adjusted net earnings for the quarter ended January 31, 2006 of $1.5
million or $0.11 earnings per fully diluted share for the same period last year,
which includes a tax expense related to an adjustment to a normal effective
income tax rate and excludes acquisition related amortization of intangibles
expense and a write-down of minority investment.
Total revenues for the nine months ended January 31, 2007 were $30.9
million, an increase of 14% compared to the comparable period last year.
Software license fees for the nine months period were $10.5 million, an increase
of 5% compared to the same period last year. Services and other revenues for the
nine months period ended January 31, 2007 were $4.8 million, an increase of 15%
compared to the same period last year. Maintenance revenues were $15.6 million
for the nine months period ended January 31, 2007 or a 19% increase compared to
the same period last year. For the nine months ended January 31, 2007, the
Company reported operating earnings of approximately $5.4 million, an increase
of 28% compared to operating earnings of $4.2 million for the same period last
year.
GAAP net earnings were approximately $4.0 million or $0.30 per fully diluted
share for the nine months ended January 31, 2007 compared to net earnings of
$6.5 million or $0.49 per fully diluted share for the same period last year.
Adjusted net earnings year to date as of January 31, 2007, which excludes stock
option compensation expense and acquisition related amortization of intangibles,
were $4.6 million or $0.35 earnings per fully diluted share compared to net
earnings of $3.1 million or $0.23 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 $31.9 million as of January 31, 2007. This is
approximately a $2.1 million sequential increase in cash and investments
compared to October 31, 2006 and approximately a $5.2 million increase compared
to January 31, 2006.
"We are pleased with Logility's performance during the quarter, adding 23
new customers and delivering all-time record revenues and operating earnings,"
said J. Michael Edenfield, Logility president and chief executive officer. "Our
year to date financial performance is also strong with growth in all revenue
streams and 48% growth in adjusted net earnings."
"The increased visibility, discipline and efficiency provided by Logility's
supply chain solutions allow manufacturing, wholesale, and specialty retail
enterprises the opportunity to significantly improve cash flow, reduce
inventory, increase supply chain responsiveness and accelerate the sales and
operations planning process," continued Edenfield. "Logility is well positioned
to streamline the supply chains of small, medium, large and Fortune 1000
companies."
Highlights for the third quarter of fiscal 2007 include:
Customers:
* Notable new and existing customers placing orders with Logility in the
third quarter include: Argo Tea, Barilla America, BJ Services, Clement
Pappas & Co., EK Success Limited, Lion Brand Yarn, NB Coatings, Sandoz
Pty Ltd., Smithfield Foods, Tyco Fire and Safety, Waterpik Technologies,
Yurman Designs, XMA Ltd, and Zotos International.
* During the quarter, software license agreements were signed with
customers located in 11 countries including: Australia, Canada, Germany,
Italy, Japan, Spain, Sweden, Venezuela, the United Arab Emirates, the
United Kingdom, and the United States.
* Logility customer, Brown Shoe Company received an Outstanding
Achievement award for supply chain excellence from Consumer Goods
Technology magazine.
* Logility announced the dates for Connections 2007: Supply Chain Power
Plays conference to be held March 21-23, 2007 at the InterContinental
Buckhead Hotel in Atlanta, GA. The annual event give attendees the
opportunity to network and share ideas with fellow supply chain
professionals, learn how to leverage and maintain best practices within
supply chain management and hear from industry experts and peers.
* Logility continued its thought leadership initiative with the Supply
Chain Power Hour webcast, "Sunny Skies Ahead: Improve Forecast
Accuracy." The webcast featured the latest insight on improving forecast
accuracy to drive revenue and improve customer service.
* Logility customer Remy International joined Logility in an Institute of
Business Forecasting (IBF) webcast, "Remy International Jump Starts
Inventory Management." The webcast focused on how companies can improve
forecast accuracy and reduce excess inventory.
Products and Technology:
* Demand Management, Inc. introduced Demand Solutions Pipeline, a demand-
driven application that provides secure, encrypted access to supply
chain data anywhere, anytime. The Web-enabled Pipeline presents product
information in an intuitive tree-and-branch representation using plain-
language terms, not cryptic item numbers. Users can review entire
product families or any other desired category by history, forecast,
customer forecast, budget or capacity. Information can by organized by
business unit, market segment or sales category, depending on the needs
of the individual user.
* Logility received top rankings from the readers of Consumer Goods
Technology magazine. For the seventh consecutive year, Logility scored
among the top five vendors for both supply chain planning and supply
chain execution in 2007. Logility also received high rankings for
Customer Experience, which is based on the reader's experience
implementing and using the software.
* Food Logistics magazine named Logility to the FL100, the magazine's
annual listing of the top 100 technology suppliers to the food industry.
Companies included in the list are selected based on the input of Food
Logistics readers, industry analysts and consultants. This is the third
consecutive year that Logility has been named to the FL 100 which was
first introduced in 2004.
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, Brown Shoe Company, BP
(British Petroleum), 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)
Third Quarter Ended Nine Months Ended
January 31, January 31,
------------------------------------ ------------------------------------
Pct Pct
2007 2006 Chg. 2007 2006 Chg.
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
License $ 3,900 $ 4,000 (3)% $ 10,544 $ 10,026 5%
Services & other 1,773 1,352 31% 4,775 4,135 15%
Maintenance 5,623 4,698 20% 15,589 13,067 19%
Total Revenues 11,296 10,050 12% 30,908 27,228 14%
Cost of Revenues:
License 1,318 652 102% 4,192 2,570 63%
Services & other 879 811 8% 2,570 2,577 0%
Maintenance 1,229 1,159 6% 3,675 3,092 19%
Total Cost of Revenues 3,426 2,622 31% 10,437 8,239 27%
Gross Margin 7,870 7,428 6% 20,471 18,989 8%
Operating expenses:
Research and development 1,868 1,787 5% 5,391 5,183 4%
Less: capitalized
development (495) (537) (8)% (1,678) (1,771) (5)%
Sales and marketing 2,378 2,841 (16)% 7,310 7,522 (3)%
General and administrative 1,381 1,077 28% 3,821 3,593 6%
Acquisition related
amortization of
intangibles 88 88 0% 263 263 0%
Total Operating Expenses 5,220 5,256 (1)% 15,107 14,790 2%
Operating Earnings 2,650 2,172 22% 5,364 4,199 28%
Interest Income & Other,
Net 456 224 104% 1,226 373 229%
Income Before Income Taxes 3,106 2,396 30% 6,590 4,572 44%
Income Tax
Benefit/(Expense) (1,111) (541) 105% (2,559) 1,884 nm
Net Earnings $ 1,995 $ 1,855 8% $ 4,031 $ 6,456 (38)%
Earnings per common share:
Earnings Per Common Share -
Basic $ 0.15 $ 0.15 0% $ 0.31 $ 0.50 (38)%
Earnings Per Common Share -
Diluted $ 0.15 $ 0.14 7% $ 0.30 $ 0.49 (39)%
Weighted Average Number of
Common Shares:
Basic 12,898 12,787 12,897 12,799
Diluted 13,220 13,172 13,247 13,198
Reconciliation of Adjusted
Net Earnings:
GAAP Net Earnings $ 1,995 $ 1,855 $ 4,031 $ 6,456
Acquisition related
amortization of
intangibles(1) 88 88 263 263
Stock option expense(1) 85 - 290 -
Write-down of minority
investment(1) - - - 160
Excludes Income tax benefit - - - (1,884)
Includes normalized Income
tax expense - (453) - (1,897)
Adjusted net earnings $ 2,168 $ 1,490 46% $ 4,584 $ 3,098 48%
Adjusted Net Earnings per
Share $ 0.16 $ 0.11 45% $ 0.35 $ 0.23 52%
nm - not meaningful
(1) - Not income tax affected
LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
January 31,
-------------------
2007 2006
-------- --------
Cash and Short & Long-term
investments $ 31,887 $ 26,701
Accounts Receivable:
Billed 6,859 7,315
Unbilled 1,264 1,317
Total Accounts Receivable, net 8,123 8,632
Deferred Tax Assets 1,580 758
Prepaids & Other Current Assets 1,845 1,943
PP&E, net 449 461
Capitalized Software, net 6,102 6,449
Goodwill 5,809 5,809
Other Intangibles, net 1,406 1,800
Deferred Tax Assets - 1,806
Non-current Assets 77 220
Total Assets $ 57,278 $ 54,579
Accounts Payable $ 266 $ 255
Other Current Liabilities 6,141 8,013
Deferred Revenues 11,471 10,012
Current Liabilities 17,878 18,280
Deferred Income Taxes 1,188 -
Deferred Income Taxes - Due to ASI - 4,228
Shareholders' Equity 38,212 32,071
Total Liabilities &
Shareholders' Equity $ 57,278 $ 54,579
SOURCE Logility, Inc.
-0- 03/06/2007
/CONTACT: Vincent C. Klinges, Chief Financial Officer, Logility, Inc.,
+1-404-264-5477/
/Company News On-Call: http://www.prnewswire.com/comp/120967.html/
/Web site: http://www.logility.com /