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Contact Information:
Vince Klinges
Chief Financial Officer
(404) 264-5477
vklinges@amsoftware.com


Logility Reports Fourth Quarter of Fiscal Year 2005 Results

Revenues Increased 31% for the Quarter Compared to Prior Year

ATLANTA (June 9, 2005) Logility, Inc. (NASDAQ: LGTY), a leading supplier of collaborative solutions to optimize the supply chain, today announced financial results for the fourth quarter and fiscal year ended April 30, 2005.

Key financial highlights for Logility include:
  • Software license fees for the quarter ended April 30, 2005 were $2.2 million, an increase of 22% over the fourth quarter of fiscal 2004;
  • Services and other revenues for the quarter ended April 30, 2005 were $1.7 million, an increase of 25% over the fourth quarter of fiscal 2004;
  • Maintenance revenue fees for the quarter ended April 30, 2005 were $3.7 million, an increase of 40% over the fourth quarter of fiscal 2004;
  • Total revenues for the quarter ended April 30, 2005 were $7.6 million, an increase of 31% over the fourth quarter of fiscal 2004;
  • Total cash and investments as of April 30, 2005 were $25.7 million, an increase of $2.6 million compared to January 31, 2005.

GAAP net loss was $224,000 or $0.02 loss per share for the fourth quarter of fiscal 2005 compared to net earnings of $62,000 or negligible earnings per fully diluted share for the fourth quarter of fiscal 2004. Adjusted net earnings for the quarter ended April 30, 2005, which excludes the acquisition related intangibles costs and an asset impairment charge was $566,000 or $0.04 per share compared to $62,000 or negligible earnings per fully diluted share for the same period last year.

On September 30, 2004, Logility purchased certain assets and the distribution channel of privately held Demand Management, Inc. (DMI), a St. Louis-based provider of supply chain planning systems marketed under the Demand Solutions brand, for approximately $8.7 million in cash. DMI reported a loss for the quarter. The loss was primarily due to the purchase accounting requirement to fair value DMI’s deferred maintenance which lowers the maintenance revenue for GAAP reporting. Since the acquisition, DMI has generated over $650,000 in operating cash flow as of April 30, 2005.

Total revenues for the twelve months ended April 30, 2005 were $25.0 million compared to $22.8 million for the same period last year. Software license fees for the twelve months ended April 30, 2005 were $6.7 million compared to $6.7 million for the prior year. Services and other revenues for the twelve months ended April 30, 2005 were $5.3 million compared to $5.2 million for the same period last year. Maintenance revenues for the twelve months ended April 30, 2005 were $13.0 million compared to $11.0 million for the same period last year. For the twelve months ended April 30, 2005, the Company reported a GAAP net loss of $549,000, or loss per share of $0.04 compared to a GAAP net earnings of approximately $1.7 million or $0.13 per fully diluted share for the prior year. Adjusted net earnings for twelve months ended April 30, 2005, which excludes the acquisition related intangibles costs and an asset impairment charge was $358,000 or $0.03 per share compared to $1.7 million or $0.13 for the same period last year.

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 $25.7 million and no debt. The Company’s cash and investment position increased approximately $2.6 million compared to January 31, 2005.

“We are pleased with our revenue growth of 31% for the fourth quarter, the addition of 13 new customers and a significant sequential increase in cash and investments of $2.6 million over the prior quarter,” said J. Michael Edenfield, Logility president and Chief Executive Officer. “Our strong balance sheet, solid cash position, overall organizational stability and market-leading supply chain solutions provide an excellent environment to continue our development of innovative solutions that simplify complex supply chain challenges and consistently deliver fast deployment to drive rapid return on investment for our customers.”

“Logility offers a wide range of supply chain applications targeted at the specific needs of distribution-intensive manufacturing, wholesale and retail organizations seeking to reduce costs and increase revenues,” stated Edenfield. “Our goal is to help customers take costs out of their supply chains by streamlining the sales and operations planning process, synchronizing supply with demand, improving forecast accuracy, automating transportation and warehouse operations, and providing greater visibility to enable better decision-making.”

Highlights for the fourth quarter and fiscal year 2005 include:

Customers

  • Notable new and existing customers placing orders with Logility in the fourth quarter include Able Distribution Company, Carole Hochman Design Group, Farley’s & Sathers Candy Company, Inc., Hamilton Beach, Honeywell, JS Products, Komatsu, Metal Building Systems, Republic Beverage Company and XanGo.
  • During the quarter, software license agreements were signed with customers located in 10 countries including Australia, Belgium, China, Germany, Italy, Malaysia, Poland, Switzerland, the United Kingdom, and the United States.
  • Logility had approximately 60 customers “go live” with new deployments or significant upgrades of Logility Voyager Solutions during fiscal year 2005. This impressive number of deployments underscores Logility’s ability to implement rapidly to accelerate business results for customers.
  • In February 2005, supply chain professionals gathered in San Antonio for the 18th Annual Demand Management Association Conference. The meeting included informative user presentations, industry briefings and the introduction of new product features for the DS One product suite. The conference proved to be an excellent forum for Mike Edenfield, Logility president and CEO, to meet with a large group of Demand Solutions users and discuss Logility’s vision for the future. The Demand Management Association is the organization for users of Demand Solutions software from Demand Management, Inc. (DMI), a wholly owned subsidiary of Logility.
  • The Logility Connections 2005: Catch the Wave—Supply Chain ROI conference occurred March 16-18 in Atlanta and offered attendees the opportunity to hear best practices from industry peers, learn valuable tips for maximizing return on investment, and gain insight from leading supply chain experts to help prepare for the next wave of demand-driven supply chain improvement.
  • The Logility International User Group Conference took place in Manchester, UK, in April 2005. The event included features from the Robert Horne Group, which discussed its swift upgrade to Logility Voyager Solutions 7.0; and Honeywell, which discussed using Logility Voyager Collaborate for sales and operations planning.
  • Logility named Remy International, North America’s largest producer of remanufactured starters and alternators for the automotive aftermarket, as the recipient of the 2005 Sailing to New Heights with Logility Award for supply chain excellence. This award is the highest honor given annually to the Logility customer that has leveraged innovation and collaboration to drive measurable business improvements and supply chain excellence through the deployment of Logility Voyager Solutions™. Remy implemented Logility Voyager Solutions in 2004 to reduce demand volatility and improve factory scheduling; generate a one-number forecast for its business; decrease inventory; and streamline the sales and operations planning process.
  • Logility presented 2005 Leadership Awards to the following companies:
    • Nestlé Purina Petcare, a leading manufacturer of dry and canned dog food, dry and canned cat food and cat box filler in the United States, has used Logility Voyager Solutions to improve payment and audit of carrier freight bills while reducing costs. The company deployed Logility Voyager Transportation Planning and Management at its plants last year.
    • Robert Horne Group, the UK's leading supplier of paper, board and plastics to the visual communications industry, has used Logility Voyager Solutions to plan more effectively and operate more efficiently. Logility was live in less than seven weeks, and the deployment paid for itself in less than three months, delivering an immediate 15% reduction in stock costs, and a current total 30% reduction in stock costs.
    • Tiffany & Co., the internationally renowned retailer, designer and manufacturer of fine jewelry, timepieces and tabletop, has used Logility Solutions to reduce demand variability and increase forecast accuracy.
    • The Coleman Company, Inc., a leading manufacturer, marketer and distributor of recreational, camping and outdoor products, has used Logility Voyager Solutions to reduce transportation costs, improve customer service and on-time deliveries; and provide more consistent lower-cost carrier selection.
    • Williamson-Dickie Manufacturing, a privately held global manufacturer of work wear, has used Logility Voyager Solutions to improve forecast accuracy, lower supply chain cost, and support a sales and operations planning process.
  • RFT S.p.A., a division of Swedish-based SKF, a leading global provider of rolling bearings and seals with 80 manufacturing sites worldwide, sales in 70 countries and 15,000 worldwide distributors and dealers, implemented Logility Voyager Solutions to improve manufacturing planning, decrease inventory levels and accelerate planning time.
  • The Coleman Company, Inc., manufacturer and distributor of products for camping, backpacking, tailgating, backyard grilling and other outdoor leisure-time activities, extended its use of Logility Voyager Solutions to include the latest version of Transportation Planning and Management with Internet-enabled carrier collaboration. The Coleman Company, Inc., implemented the software on budget and on time in under five months.

Products and Technology

  • Logility unveiled Logility Voyager Solutions 7.5 to attendees at Connections 2005. The latest version, which will be commercially available in summer 2005, includes enhancements to help distribution-intensive companies use the Internet to gain visibility of key metrics; manage dynamic global supply chain activities; support radio frequency identification (RFID) initiatives; optimize transportation operations; and accelerate sales and operations planning (S&OP) processes. Enhanced performance management capabilities are embedded across all areas of Logility Voyager Solutions. Key functionality by business process area includes:
    • Demand chain planning—enhanced Web-based forecast management, forecast modeling, life cycle planning and time-phased safety stock methods
    • Supply chain planning—expanded load optimization and shelf live capabilities, and new plant level KPIs and alerts
    • Transportation planning and management—additional shipment planning and execution features
    • Built-in RFID support, warehouse management additions and support for Lightweight Directory Access Protocol (LDAP)

For more detailed information, please reference the March 17, 2005 press release, Logility Voyager Solutions 7.5 Debut at Connections 2005.


About Logility
With more than 1,100 customers worldwide, Logility is the 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. Logility customers include Bissell, Huhtamaki UK, Katun Corporation, McCain Foods, Mill’s Pride, Pernod Ricard, Rand McNally, Sigma Aldrich, 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 www.logility.com.

Forward Looking Statements
This press release may include statements that may constitute “forward-looking statements,” including estimates of future business prospects or financial results and statements containing the words “believe,” “expect,” or similar expressions. Any forward-looking statements herein are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. There are many factors that could cause actual results of Logility to differ materially from those anticipated by forward-looking statements made herein. These factors include continuing economic uncertainty, the timing and degree of business recovery, unpredictability and the irregular pattern of future revenues, competitive pressures, delays and other risks associated with new product development, undetected software errors, and risks associated with market acceptance of the Company’s products and services as well as a number of other risk factors that could affect the future performance of the Company. Please refer to a discussion of these factors and others in the Company's most recent Annual Report on Form 10-K, and in its Quarterly Reports on Form 10 Q and other reports and documents subsequently filed with the Securities and Exchange Commission. The Company undertakes no obligation to update the information contained in this release, including any forward-looking statements. For more information about risks the Company could face as well as other 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: ask@logility.com.

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