|Manugistics Announces First Quarter Fiscal 2006 Results|
Thursday June 30, 4:10 pm ET
ROCKVILLE, Md.--(BUSINESS WIRE)--June 30, 2005--Manugistics Group, Inc. (NASDAQ:MANU - News), a leading global provider of synchronized supply chain and revenue management solutions, today reported results for its first quarter ended May 31, 2005.
For the first quarter, total revenue was $46.7 million, down 10 percent from $51.6 million in the prior year quarter. Software revenue was $8.4 million, down 19 percent from $10.4 million in the prior year quarter. Support revenue was $21.8 million compared to $21.4 million in the prior year quarter. Product revenue, which is composed of software and support revenue, was 65 percent of total revenue compared to 62 percent of total revenue in the prior year quarter. Services and reimbursed expenses revenue was $16.5 million, down 17 percent from $19.8 million in the prior year quarter.
For the first quarter, the Company reported a GAAP net loss of $4.9 million, or $0.06 per basic and diluted share, compared to a GAAP net loss of $7.7 million, or $0.09 per basic and diluted share, in the prior year quarter. For the first quarter, the Company reported a GAAP operating loss of $3.0 million compared to a GAAP operating loss of $5.2 million in the prior year quarter. The GAAP net loss and the GAAP operating loss for the quarter ended May 31, 2004 include a $2.5 million benefit in exit and disposal charges primarily related to a lease termination agreement.
For the first quarter, the Company reported an adjusted operating income of $1.1 million compared to an adjusted operating loss of $2.3 million in the prior year quarter. The Company reported an adjusted net loss of $0.8 million, or $0.01 per basic and diluted share, for the first quarter, compared to an adjusted net loss of $4.9 million, or $0.06 per basic and diluted share, in the prior year quarter.
Adjusted operating income or loss, adjusted net loss and adjusted net loss per basic and diluted share referred to in this press release are non-GAAP measures and exclude the following items: amortization of intangibles and acquired technology, charges and benefits from exit and disposal activities and non-cash stock option compensation charges. A reconciliation of GAAP results to adjusted results has been provided in the financial statement tables following the text of this press release. For further information, please refer to the section of the press release titled, "Reasons for Presentation of Non-GAAP Financial Measures."
Headcount at the end of the first quarter increased to 722 from 695 at the end of the prior quarter, primarily as a result of increased staffing at the Company's new development center in Hyderabad, India. As previously announced the Company intends to increase headcount and development capacity in India during fiscal 2006 and expects to reduce its overall product development costs from its third quarter of fiscal 2005 by $2.0 million to $3.0 million per quarter by the end of fiscal 2006 by reducing its product development costs in the U.S.
Business Metrics - Quarter Ended May 31, 2005
-- The Company closed seven significant software license
transactions - software license transactions of $100,000 or
-- Included in the above are two significant software license
transactions of $1.0 million or greater.
-- The average selling price for significant software
transactions was approximately $976,000.
-- Eighteen percent of software revenue came from significant
transactions related to new clients.
-- Seventy-three percent of software revenue came from
-- Cash flows provided by operations were $0.6 million.
-- Cash, cash equivalents, marketable securities and long-term
investments were approximately $133.3 million as of May 31,
2005, down from $135.9 million as of February 28, 2005.
-- Days Sales Outstanding (DSO) for receivables were 80 days
compared to 91 days for the quarter ended February 28, 2005.
Manugistics does not provide forward-looking guidance on software revenue, total revenue, operating income or net income performance nor does the Company intend to provide performance updates prior to the release of full period results.
Other Highlights and Developments:
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