EX-99.1 2 v096620_ex99-1.htm
 
EXHIBIT 99.1
FOR IMMEDIATE RELEASE 

Financial Information Press Contact:      
Vincent C. Klinges
Chief Financial Officer
Logility, Inc.
(404) 264-5477
 
Logility Reports Preliminary Second Quarter
of Fiscal Year 2008 Results
 
Operating Earnings Increase 49% driven by 11% Growth in Revenues

 
ATLANTA (December 6, 2007) Logility, Inc. (NASDAQ: LGTY), a leading supplier of collaborative solutions to optimize the supply chain, today announced financial results for the second quarter of fiscal year 2008.
 
Key Second quarter financial highlights include:
 
·  
Total revenues for the quarter ended October 31, 2007 were $11.1 million, an increase of 11% over the second quarter of fiscal 2007;
   
·  
Software license fees for the quarter ended October 31, 2007 were $3.4 million, an increase of 2% over the second quarter of fiscal 2007;
 
·  
Services and other revenues for the quarter ended October 31, 2007 were $2.0 million, an increase of 28% over the second quarter of fiscal 2007;
 
·  
Maintenance revenues for the quarter ended October 31, 2007 were $5.7 million, an increase of 12% over the second quarter of fiscal 2007; and
   
·  
Operating earnings for the quarter ended October 31, 2007 were $2.2 million, an increase of 49% compared to operating earnings of $1.5 million for the second quarter of fiscal 2007.

 
GAAP net earnings were $1.7 million or $0.13 earnings per fully diluted share, an increase of 50% for the second quarter of fiscal 2008 compared to net earnings of $1.1 million or $0.08 earnings per fully diluted share for the second quarter of fiscal 2007. Adjusted net earnings, which exclude stock option compensation expense and acquisition-related amortization of intangibles expense were $1.8 million or $0.14 earnings per fully diluted share for the quarter ended October 31, 2007, compared to adjusted net earnings of $1.3 million or $0.10 earnings per fully diluted share for the same period last year.
 
—more—

 
 
 
 
Logility Reports Second Quarter and Fiscal Year 2008 Results
Page 2
 
 
Total revenues for the six months ended October 31, 2007 were $23.1 million or an 18% increase compared to the comparable period last year. Software license fees for the six months were $8.1 million or a 22% increase compared to the same period last year. Services and other revenues were $4.1 million or a 35% increase compared to the same period last year. Maintenance revenues were $11.0 million or a 10% increase compared to the same period last year. For the six months ended October 31, 2007, the Company reported operating earnings of approximately $5.2 million or a 91% increase compared to operating earnings of $2.7 million for the same period last year.
 
GAAP net earnings were approximately $3.5 million or $0.26 per fully diluted share for the six months ended October 31, 2007 compared to net earnings of $2.0 million or $0.15 per fully diluted share for the same period last year. Adjusted net earnings, which for the current period exclude stock option compensation expense, acquisition-related amortization of intangibles expense and a non-cash tax valuation adjustment, were $4.2 million or $0.31 earnings per fully diluted share for the six months ended October 31, 2007 compared to net earnings of $2.4 million or $0.18 earnings per fully diluted share the same period last year, which exclude stock option compensation expense and acquisition related amortization of intangibles expense.
 
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 $39.7 million as of October 31, 2007. This is approximately a $3.5 million sequential increase in cash and investments compared to July 31, 2007 and approximately a $9.9 million increase compared to October 31, 2006.
 
“We are pleased with Logility’s performance during the quarter, adding 24 new customers, growing revenues and increasing operating earnings by 49% compared to the second quarter of fiscal year 2007,” said J. Michael Edenfield, Logility president and chief executive officer. “Our year-to-date financial performance has also been strong with double-digit growth in all revenue streams and 91% growth in operating earnings. Our industry-leading solutions, deep domain expertise, strong customer base and ability to deploy quickly, combined with our continued financial strength and organizational stability, provide a solid foundation upon which Logility will continue to deliver innovation and value for our customers.”
 
 
 
 
 
Logility Reports Second Quarter and Fiscal Year 2008 Results
Page 3
 
 
“To remain competitive in today’s global market, companies must become increasingly demand-driven and trim inefficiencies from their manufacturing, distribution and transportation operations,” continued Edenfield. “Logility provides supply chain solutions that give small, medium, large and Fortune 500 companies the visibility they need to overcome global supply chain challenges, reduce costs, improve service and streamline sales and operations planning (S&OP).”
 
Highlights for the second quarter of fiscal 2008 include:
 
Customers:
 
·  
Notable new and existing customers placing orders with Logility in the second quarter include: Atek Medical, CooperVision, Cypress Medical, Henkel North America, Interface Modernform, Nike, PPG Refinish, Premier Farnell, Electrolux, SanMar Corporation, Stiefel Laboratories, and Whatman International.
 
·  
During the quarter, software license agreements were signed with customers located in 12 countries including; Australia, Brazil, China, France, Germany, Italy, Malaysia, South Africa, Switzerland, Thailand, the United Kingdom, and the United States.
 
·  
Logility customer Intertape Polymer Group (IPG) was featured along with Logility in an APICS webcast “Forecasting a Profitable Supply Chain”. The webcast focused on how companies can improve forecast accuracy to increase supply chain profitability and discussed how IPG improved forecast accuracy, accelerated inventory turns and increased profitability with the help of Logility Voyager Solutions. “Forecasting a Profitable Supply Chain” was also a featured presentation at the APICS national conference held October 21-23, 2007.
 
·  
Logility’s Supply Chain Power Hour “Buckle Up Transportation Savings” was the latest webcast in Logility’s popular supply chain educational series. The webcast featured Logility customer Rockline Industries and Ian Hobkirk, senior analyst, logistics, AberdeenGroup who provided participants with the latest insight on centralizing transportation management to reduce costs and improve overall supply chain performance.

·  
Logility and Shaw Industries were featured in an APICS webcast on Sales and Operations Planning. The webcast, “S&OP: Turning Blame into Gain”, focused on how companies can compete more effectively by synchronizing corporate planning processes with an integrated S&OP planning solution.
 
Products and Technology:

·  
Demand Management, a wholly-owned subsidiary of Logility and a global resource for managing the supply chain, announced the addition of service parts management capabilities to its replenishment software solution. These capabilities automate the process of planning and aligning service parts inventories, resources, and processes to ensure optimal customer service and response with minimal risk and cost.

·  
Logility announced its new Carrier On-Boarding Service to accelerate implementations of Voyager Transportation Planning and Management. The new Carrier Portal, EDI and Carrier On-boarding capabilities streamline the business processes and communication with carriers and further accelerates rapid ROI by enabling visibility into loads, tenders, bids, shipment status information and freight payment.

·  
Logility was named to Software Magazine’s annual Software 500, a revenue-based ranking of the world’s largest software and services suppliers. Logility has been consistently ranked in the list for more than five years and has steadily climbed in position as a result of the Company’s continued growth in the supply chain management software market.

 
 
 
 
Logility Reports Second Quarter and Fiscal Year 2008 Results
Page 4
 
 
About Logility
 
With more than 1,240 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; sales and operations 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, 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, 2007 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 Reports Second Quarter and Fiscal Year 2008 Results
Page 5
 

LOGILITY, INC.
  
Consolidated Statements of Operations Information
  
(In thousands, except per share data)
  
(Unaudited)
  
                           
   
Second Quarter Ended
  
Six Months Ended
  
   
October 31,
 
October 31,
 
           
Pct
          
Pct
  
   
2007
  
2006
  
Chg.
  
2007
  
2006
  
Chg.
  
Revenues:
                          
License
  
$
3,399
  
$
3,343
    
2
%
$
8,076
  
$
6,644
    
22
%
Services & other
    
2,039
   
1,587
   
28
%
  
4,051
   
3,003
   
35
%
Maintenance
    
5,696
   
5,089
   
12
%
  
10,971
   
9,966
   
10
%
 Total Revenues
    
11,134
   
10,019
   
11
%
  
23,098
   
19,613
   
18
%
                                       
Cost of Revenues:
                                      
License
    
1,520
   
1,497
   
2
%
  
3,154
   
2,874
   
10
%
Services & other
    
1,023
   
837
   
22
%
  
2,045
   
1,691
   
21
%
Maintenance
    
1,267
   
1,220
   
4
%
  
2,347
   
2,446
   
(4
%)
 Total Cost of Revenues
    
3,810
   
3,554
   
7
%
  
7,546
   
7,011
   
8
%
Gross Margin
    
7,324
   
6,465
   
13
%
  
15,552
   
12,602
   
23
%
                                       
Operating expenses:
                                      
Research and development
    
1,948
   
1,762
   
11
%
  
3,825
   
3,523
   
9
%
Less: capitalized development
    
(630
)
  
(587
)
  
7
%
  
(1,155
)
  
(1,183
)
  
(2
%)
Sales and marketing
    
2,426
   
2,426
   
0
%
  
4,878
   
4,932
   
(1
%)
General and administrative
    
1,293
   
1,297
   
0
%
  
2,631
   
2,439
   
8
%
Acquisition related amortization of intangibles
    
87
   
87
   
0
%
  
174
   
175
   
(1
%)
                                                         
 Total Operating Expenses
    
5,124
   
4,985
   
3
%
  
10,353
   
9,886
   
5
%
                                       
Operating Earnings
   
2,200
   
1,480
   
49
%
  
5,199
   
2,716
   
91
%
                                       
Interest Income & Other, Net
    
504
   
427
   
18
%
  
913
   
770
   
19
%
Earnings Before Income Taxes
    
2,704
   
1,907
   
42
%
  
6,112
   
3,486
   
75
%
Income Tax Expense
    
1,031
   
792
   
30
%
  
2,593
   
1,448
   
79
%
                                       
Net Earnings
 
$
1,673
  
$
1,115
    
50
%
$
3,519
  
$
2,038
    
73
%
                                       
Earnings per common share:
                                      
                                       
Earnings Per Common Share - Basic
  
$
0.13
  
$
0.09
    
44
%
$
0.27
  
$
0.16
    
69
%
                                       
Earnings Per Common Share - Diluted
  
$
0.13
  
$
0.08
    
63
%
$
0.26
  
$
0.15
    
73
%
                                       
Weighted Average Number of Common Shares:
                                      
 Basic
    
12,953
   
12,896
         
12,943
   
12,896
       
 Diluted
    
13,307
   
13,232
         
13,343
   
13,253
       
                                       
Reconciliation of Adjusted Net Earnings:
                                      
GAAP Net Earnings
 
$
1,673
  
$
1,115
        
$
3,519
  
$
2,038
        
Acquisition related amortization of intangibles(1)
    
87
   
87
         
174
   
175
       
Stock-based compensation (1)
    
89
   
105
         
177
   
205
       
Tax valuation adjustment (non-cash)
    
-
   
-
         
283
   
-
       
Adjusted net earnings
 
$
1,849
  
$
1,307
    
41
%
$
4,153
  
$
2,418
    
72
%
                                   
     
   
      
          
Adjusted Net Earnings per Share - Diluted
  
$
0.14
  
$
0.10
    
40
%
$
0.31
  
$
0.18
    
72
%
                   
                   
(1) - Not income tax affected
                                      

 
 
 
 
Logility Reports Second Quarter and Fiscal Year 2008 Results
Page 6

  LOGILITY, INC.
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
   
October 31,
  
April 30,
  
   
2007
  
2007
  
           
Cash and Short-term investments
$
39,672
  
$
32,316
  
Accounts Receivable:
            
Billed
  
4,978
   
7,764
 
Unbilled
  
1,361
   
1,412
 
Total Accounts Receivable, net
  
6,339
   
9,176
 
Deferred Tax Assets
  
729
   
1,361
 
Due from ASI
  
173
   
1,167
 
Prepaids & Other Current Assets
  
2,126
   
1,995
 
Current Assets
  
49,039
   
46,015
 
             
PP&E, net
  
447
   
436
 
Capitalized Software, net
  
5,921
   
6,042
 
Goodwill
  
5,809
   
5,809
 
Other Intangibles, net
  
1,058
   
1,288
 
Non-current Assets
  
67
   
67
 
                    
Total Assets
$
62,341
  
$
59,657
  
             
Accounts Payable
$
416
  
$
275
  
Other Current Liabilities
  
4,380
   
5,680
 
Deferred Revenues
  
10,840
   
11,350
 
 Current Liabilities
  
15,636
   
17,305
 
             
Deferred Income Taxes
 
2,095
   
1,940
 
Shareholders' Equity
  
44,610
   
 40,412
 
                     
Total Liabilities & Shareholders' Equity
$
62,341
  
$
59,657