|Manugistics Announces Second Quarter Fiscal 2006 Results|
Tuesday September 27, 4:10 pm ET
ROCKVILLE, Md.--(BUSINESS WIRE)--Sept. 27, 2005--Manugistics Group, Inc. (NASDAQ:MANU - News), a leading global provider of synchronized supply chain and revenue management solutions, today reported results for its second quarter ended August 31, 2005.
For the second quarter, total revenue was $43.6 million, down 15 percent from $51.3 million in the prior year quarter. Software license revenue was $5.1 million, down 54 percent from $11.1 million in the prior year quarter. Support revenue was $21.8 million compared to $21.3 million in the prior year quarter. Product revenue, which is composed of software license and support revenue, was 62 percent of total revenue compared to 63 percent of total revenue in the prior year quarter. Services revenue was $15.3 million, down 7 percent from $16.4 million in the prior year quarter.
For the second quarter, the Company reported GAAP net loss of $6.1 million, or $0.07 per basic and diluted share, compared to GAAP net loss of $17.1 million, or $0.21 per basic and diluted share, in the prior year quarter. For the second quarter, the Company reported GAAP operating loss of $7.1 million compared to GAAP operating loss of $15.0 million in the prior year quarter. GAAP net loss and GAAP operating loss for the quarter ended August 31, 2005 and 2004 included $1.3 million and $6.2 million, respectively, in exit and disposal charges primarily related to the abandonment of offices with lease commitments and severance and related benefits for involuntary terminations. GAAP net loss and GAAP operating loss for the quarter ended August 31, 2005 include a $3.7 million non-cash charge related to an impairment of an acquired technology asset. In addition, GAAP net loss for the three months ended August 31, 2005 includes a $2.6 million tax benefit primarily related to a tax refund received during the second quarter.
For the second quarter, the Company reported adjusted operating income of $1.4 million compared to adjusted operating loss of $3.5 million in the prior year quarter. The Company reported adjusted net loss of $0.2 million, or $0.00 per basic and diluted share for the second quarter, compared to adjusted net loss of $5.6 million, or $0.07 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, asset impairment charge, benefit from tax refund 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 second quarter increased to 765 from 722 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 thereby plans 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 August 31, 2005
Cash flows from operations were $5.3 million.
Cash, cash equivalents, marketable securities and long-term investments were approximately $136.1 million as of August 31, 2005, up from $133.3 million as of May 31, 2005.
Capitalized software development costs were $0.6 million for the quarter while the amortization of capitalized software development costs for the same period was $2.3 million for a net expense of $1.7 million.
The Company closed 13 significant software license transactions - software license transactions of $100,000 or greater recognized in the quarter.
There were no significant software license transactions of $1.0 million or greater.
The average selling price for significant software license transactions was approximately $264,000.
34 percent of software license revenue came from significant transactions related to new clients.
53 percent of software license revenue came from international sales.
Days Sales Outstanding (DSO) for receivables was 78 days compared to 80 days for the quarter ended May 31, 2005.
Bookings for the quarter were $1.6 million. Bookings are defined as the amount of software license revenue we expect to recognize in future periods from software license transactions signed during the quarter.