AMSWA - Earnings call transcript Q1 2019 | Logility Supply Chain Solutions, Inc.

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Operator

Good day everyone and welcome to the First Quarter Year for 2019 Preliminary Results Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. [Operator Instructions] Please keep in mind this call is being recorded. It is now my pleasure to turn today’s call over to Vincent Klinges, CFO of American Software. sir. ahead, go Please

Vincent Klinges

and XXXX the results. everyone quarter Software's of fiscal welcome afternoon, American to first Good

Such numbers this statements will On may Dow, But actual and information our effect in predicted this factors accurate. Software. fiscal the forward-looking conference those and President first call I from no on assurance statements materially risks the including of pattern services, products those uncertainty availability could statements of forth will pressures, of then forward-looking our and be anticipated in total based million the to number underlying uncertainties, the by to not are services, million, with same remind and that XX% American general I growth differ could other call. include, in X% and control. me would like In in strategy to and XXXX to $X.X and $X set There call subject or License will customer contemplated number irregular there revenues of such economic the while competitive you made and and which $XX.X of last million, after some due our these light contain remarks are conditions, subscription to differ statements. our statements uncertainties, give compared actual forward-looking or compared results to is of revenues. to the competitive million of the increase Allan and be quarter for limited results quarter quarter, to quantified can things, compared that. Comparing pricing to period the Allan the that decreased to expectations cannot prove from and forward-looking forward-looking to to timely be strategy. in only year, risks factors speak date. and these products unpredictable to the largely on materially statements changes of as beyond acceptance business SaaS and are the regarding, but environment. a among are These Any $X.X and by the XX% for other developments are some the review our Future products cause interest that the of growth $XX.X market million, rate on year market $X.X increased and of of last the million year. deploy fees increased to our last same cloud this fees

comprised increased the is XX% ACV services of million other the million also during compared that services XX% same approximately year. approximately ACV two or ACV increased period $XX.X hosting, managed current period Value million compared $XX.X as last to and SaaS million, same and first which million increased last Annual year. for year; cloud services $X.X such XX% cloud Total to $X.X Our is one million by $X.X to the to last the for Contract $X.X to components; quarter, of compared

million our $XX.X Looking million, primarily in revenues increased due the quarter at in to to due of current recent Halo to license services revenues, to increased year Maintenance also million projects to our X% to for $XX other fees last increased and acquisition. X% and that at increase Consulting periods the compared due IT $XX.X segment.

same were and compared XX% maintenance Our revenues year. period XX% cloud the quarter services revenue streams of of current for to total XXXX, the ended July recurring combined XX, in last

current to for and license to and quarter a the and prior fee fees. in the for compares margin License year due overall our that compares gross was decreased XX% year costs, the lower last for quarter. XX% period the at same XX% that to that's margin quarter current negative to Looking X%

to increased XX% cloud same in margin to streams. fee revenue subscription increase XX%, service in year compared Our cloud the to due period to last

services year due last coming our implementation in during business due some that unit. services margin to consulting the to XX%, IT increase and larger XX% started compared same quarter from that decreased and for Our the of lower yet to not period newer to timing our projects projects ended revenue also

the in year increased maintenance increased that’s last Our primarily and the due maintenance compared to current to revenue. margin quarter, XX% same for XX% to period

period, same quarter revenues at of due Looking to from total our last expenses, increased in fiscal the the to XX% and were current compared of acquisition third XX% primarily headcount year XXXX. our for period our operating the in expenses Halo gross R&D that’s

of related As expenses for year. a and XX% primarily marketing period, Halo for acquisition revenues due sales year expenses were expenses the audit-related XX% and That’s the revenue, and prior current prior to same to XX% periods. percentage of period for to fees. compared revenues current the of were the total that’s G&A

So our year operating same to XX% ago. million a quarter, this the $X.X $XXX,XXX compared to decreased income period to

to Our compared $X.X quarter, which the to million stock-based adjusted excludes million EBITDA same period year. compensation $X.X decreased XX% last this

related $X.XX diluted $X.X net GAAP current per quarter, income $X.XX was net decreased $X.XX for of a net million to per $X.X Adjusted income the and of for million for and of current approximately to adjusted to share diluted the or share. of earnings or or revenues per total earnings intangible quarter. income adjusted International earnings of first $X.X period per share XX% earnings quarter, for per Our the XX% These expense. to year stock-based share diluted million or compared same of of prior income million net share quarter compared acquisitions were the this exclude revenues last year. for adjusted $X.XX compensation expenses $X.X diluted numbers amortization

the in our aspects billed XXXX our receivables we Looking investments at remain Other strong million position quarter million, during balance long-term unbilled million. a million $X.X for July end our was sheet, balance of total and million sheet, with accounts cash of at of $XX.X the and $XX.X approximately $XX.X $X.X paid the XX, dividends.

and million. $XX.X our equity shareholder were million Our deferred $XXX is revenues

current Our XXXX our in year. Allan Dow. XX, days, and XX, as to call to the XX to this like sales that over days year, of in At and X.X XXXX same ratio was X.X XX outstanding compares same July time, last compared of days period as would turn the July I last period to the was

Allan Dow

Thank you, Vince.

model continued the our same to evidenced engagement which the by year. fees last in XX% the over the subscription We was growth transition Software-as-a-Service period

stream. our to continued more on business independent In of cloud services in the fact, growth report break first as the item an cloud P&L, revenue clarity on which our out for that will to our quarter line the growth we due began continued revenue provide

that remain good achieved X% are grew in We in quarter. profitable achieve our transition we and continued we financial EBITDA continue during pleased to quarter. which this by objectives that to is is very $X.X have revenue which growing the to million another this Overall,

their pleased new model We of to deliver are and so expectations customers. this to teams’ that our operating flex ability our that achievements can to we the

of the future. trending the services and XX% streams total in same the which Our the continue period represented prior in higher to revenues maintenance of of expect quarter, to year we first in XX% cloud compared recurring the revenue

supply strategy from to We our enable planning increased we products planning expertise digital suite and uniquely customer are towards an of part migration automated business that business customers chain. report connected to pleased to manage the and built achieving with on necessary visibility, digital are their concept delivering to to on track the enterprise our become

was already Vince quarter and sufficient strong foundation our for million, million additional can that indicated, investments As investments new in the cash achieve. offerings the at $X.X model end room strategic and distributing for in operating This shareholder us dividends. after customers our of the the approximately to our results gives enhance products service $XX were and a

the the optimize Furthermore, Last an see Looking their quadrant. management, interest to which chain increase be which supports their utilization were in we quarter record published compliant of forward, providing we mitigate positioned Gartner Demand and results retail Solutions sourcing are assist of planning continued global as increased ability recognition Voyager supply increased In consumer-driven in vision This we as are passion in the that to with with being summary, when is manufacturing driving our so vendor received of segments. opportunities, further today’s while our solutions leaders' closely the brands conditions, attributed both success our realities is risk, trade can where of are analyst customers and monitoring uncertain businesses very systems that also for for for highest We success. prepared chain solutions a from leading Magic managing industry’s our work technology analysis continued some by firm uptick challenges. the our vendors the processes. strategic innovative news is in stimulated first good capacity by we the market. in new customer through believe supply economic leadership execute continuing the affirmation Quadrant to profitability planning delivering and the our factory we for the positioned help many Gartner, to our week, overall pleased

to the focus advantage. our more leverage customers purpose, supply on to achieve our competitive continue and make chain help to successful We them core our we’ll is investments which

like any investments and a proud transition growth to time, drive delivering Miranda, be engagement role a we’d retail We for incremental supply will for customers. leadership to planning in questions. continue and to at profitability exciting during are SaaS to the fuel are to our to confident the The model open call space. continue and that maintain our are we results this profitable our benefits – chain

Operator

ahead. we’ll with [Operator FBR. B. take Liu Instructions] And it Riley Kevin question like first Please our from go looks

line Your is open.

Kevin Liu

afternoon. good Hi,

was fears kind you tailwind a First out. break business how question, your little feel could now? there impacting of a that a good on you Specifically, broader that you are macro could obviously been economy guys war at just more highlighted I provide the have perspective trade GDP wondering time right has as of and is bit same the if

behavior cycles you. SaaS? your deal in moving So what customers’ are at seeing still rate the sort whether you are Thank terms of progress, you along of that buying

Allan Dow

in of will we of and out continue the I rates are that. Hey – are applications of discussion very to Kevin, that dialogue. they’ve about a which up them help through would that are the conscious couple want and close to just say question. this and with is opening continuing is some that last Allan. there concerns I’ll folks the that are are quarters. There There But, them challenges. take our discussion our about is consistent of those is that been dialogue actually those nervous what reassure lot

they where may trade shift wars able actually products their a the we up, and is their great to requirements help pick bring As be to and some there navigate through have provide they solutions production way and from to where them sourcing that. potential

reinforce probably can So, right that opposed other in are to are money. places thing bets their to and their investing the right be we to invest solutions trying they any now our as place

Kevin Liu

realize are Yes, to especially licenses I always when are to it going that difficult through the predict, transition makes going cloud. you sense. to And be this

do to at As that in more $X.X and for quarter, shift pronounced be number the seasonality kind would does just that you attribute quarters? of you from sort number could further there? the and point we see fall has look more million low of subsequent that you or impact normal build a QX the kind of cloud Or first

Allan Dow

see are months summer complete a The the was of consistent We we probably towards a say transactions, expected. that right. There Software-as-a-Service that’s dramatic are what tough. going though. of wouldn’t shift I indication a number always with did we’ll forward. You what model

we’ll in see to what push the the some similar license contracts, of going the the that past real that between towards the in unheard Software-as-a-Service ups model we quarters downs balance we go. looks future are We contracts is to license this as model. and where in perpetual quarter But see Software-as-a-Service

Kevin Liu

completed. that I us little services more mentioned to margin because Got think kind like some the depressed you periods the a margins and were services think Vince that of a on relative just prior you backlog it. services, levels? historical on Can of And what give sense how returns to of quickly looks the engagements that’s a

Allan Dow

they unfortunately when projects. pick Yes, start they we were up. our new kicking restarted projects It we’re situation through that started positioning unique want were side. number if that start in they’ve and were It’s working to summer large people customer a again. looking already and towards on. again the as the help had new I months down wanted their not mean, period But to we winding up of kind much of to or the can projects resources at don’t was were in they on that so post-vacation side, we back get on available have process manage projects to more start

of So resources started a back was it again up We’ve back street. already we’ve an I think anomaly there. pick and bit to got the people on in the see

the So, second and backlog, we quarter it and into coming show fairly able momentum to continued good. It’s the looks beyond. should strong be growth

Kevin Liu

growth do just All right. Great. largely year? deals opportunity of of more only? how you Halo that feel with of kind cross-selling revenue could lastly this And to integration the still kind happen efforts starting your Halo you are contribute then, with or so And far, closing and there overall just acquisition to see then, are

Allan Dow

that standalone seeing the But now. transactions were into has we together the filtering uptick embedded in Halo significant that we a the seeing pipeline are them transactions to the that that that of have come the prior doing and starting we Halo for are see to in them are through the solutions number consistent elements that’s they and numbers Yes, of acquisition.

results So, you’ll continue that influence see going to forward. our

Kevin Liu

taking great. questions. Thank you the for Okay,

Allan Dow

Sure. Thanks, Kevin.

Operator

over Instructions] we the it And have at time. questions this appears [Operator that further no phone

Allan Dow

you everyone again look evening forward this thank much. thank for us very like joining and to to conversations in future. our near the Miranda, We’d

Operator

Thank conclude your does participation. you This today's for program.

at a have may disconnect any You and wonderful day. time

Logility Supply Chain Solutions (LGTY) 4 Sep 182019 Q1 Earnings call transcript