EX-99.(A)(4) 2 dex99a4.htm INVESTMENT BANKING PRESENTATION DATED APRIL 16, 2009 INVESTMENT BANKING PRESENTATION DATED APRIL 16, 2009
April 16, 2009
Investment Banking Presentation
Prepared For
The Special Committee of the Board of Directors of
Logility, Inc.
VRA Partners, LLC is a Member FINRA/SIPC.
Exhibit (a)(4)


2
Preface
The
information
contained
herein
was
prepared
by
VRA
Partners,
LLC
(“VRA”)
in
connection
with
our
engagement
to
advise
the
Special
Committee
(the
“Special
Committee”)
of
the
Board
of
Directors
of
Logility,
Inc.
(“Logility”
or
the
“Company”)
with
respect
to
the
announcement
of
a
cash
tender
offer
by
American
Software,
Inc.
(“Prospective
Acquiror”)
pursuant
to
a
press
release
dated
March
18,
2009
in
which
the
Prospective
Acquiror
announced
its
intention
to
acquire
all
of
the
outstanding
shares
of
Logility’s
common
stock
not
already
owned
by
the
Prospective
Acquiror
at
a
price
of
$5.10
per
share
in
cash
(the
“Proposed
Acquisition”),
and,
if
appropriate,
to
render
an
opinion
to
the
Special
Committee
with
respect
to
the
fairness,
from
a
financial
point
of
view,
to
the
Company’s
shareholders
other
than
American
Software,
Inc.
and
any
of
its
affiliates,
of
the
consideration
to
be
received
in
the
Proposed
Acquisition.
This
information
and
our
analyses
are
not
intended
to
be,
nor
should
be,
relied
upon
by
any
other
party. 
Any
disclosure
of
the
contents
of
this
document
to
third
parties
by
the
Special
Committee
requires
VRA’s
written
consent.
This
document
was
prepared
utilizing
information
provided
by
Logility
and
American
Software,
Inc.
and
obtained
from
certain
other
publicly
available
sources.
VRA
has
relied
without
independent
verification
upon
the
accuracy
and
completeness
of
the
financial
and
other
information
discussed
with
or
reviewed
by
us
for
purposes
of
our
analyses
except
where
we
have
actual
knowledge
as
to
the
inaccuracy
of
incompleteness
of
such
information.
With
respect
to
the
financial
forecasts
of
Logility
provided
to
or
discussed
with
us,
we
have
assumed,
without
independent
verification
or
investigation,
that
such
forecasts
have
been
reasonably
prepared
on
bases
reflecting
the
best
currently
available
information,
estimates
and
judgments
of
the
management
of
Logility
as
to
the
future
financial
performance
of
the
Company,
and
we
express
no
opinion
with
respect
to
such
forecasts
or
the
assumptions
on
which
the
forecasts
are
based.
VRA
has
not
conducted
a
physical
inspection
of
the
properties
and
facilities
of
the
Company
and
has
not
made
any
evaluations
or
appraisals
of
the
assets
or
liabilities
(including,
without
limitation,
any
potential
environmental
liabilities),
contingent
or
otherwise,
of
the
Company.
VRA’s
analyses
must
be
considered
as
a
whole.
Selecting
portions
of
our
analyses,
without
considering
all
analyses,
would
create
an
incomplete
view.
Individual
estimates
of
value
contained
on
our
analyses
are
not
necessarily
indicative
of
actual
value,
which
may
be
significantly
more
or
less
favorable
than
as
set
forth
therein.
Estimates
of
the
financial
value
of
reference
companies
and
their
securities
do
not
purport
to
be
appraisals
or
necessarily
reflect
the
actual
values
of
such
companies
or
their
securities. 
Because
such
estimates
are
inherently
subject
to
uncertainty,
VRA
does
not
assume
responsibility
for
their
accuracy.
Our
analyses
are
necessarily
based
upon
market,
economic
and
other
conditions
as
they
exist
on,
and
can
be
evaluated
as
of,
the
date
hereof.
It
should
be
understood
that,
although
subsequent
developments
may
affect
these
analyses,
VRA
does
not
have
any
obligation
to
update
or
revise
its
analyses.


3
Section
Contents
I.
Transaction Overview
II.
Overview of Logility
III.
Logility
Financial Information
IV.
Logility
Stock Performance and Trading Information
V.
Valuation
A.
Valuation Methodology
B.
Reference Public Company Analysis
C.
Precedent Merger and Acquisition Transaction Analysis
D.
Premiums Paid Analysis
E.
Discounted Cash Flow Analysis
F.
Valuation Summary
Appendices
A.
Reference
Public
Company
Analysis
Business
Descriptions
B.
Premiums Paid Analysis
Table of Contents


4
On
March
18,
2009,
American
Software,
Inc.
(“ASI”
or
the
“Prospective
Acquiror”)
publicly
announced
that
it
intends
to
purchase
up
to
all
the
outstanding
common
stock
of
Logility,
Inc.
(“Logility”
or
the
“Company”)
not
currently
owned
by
ASI
at
a
price
per
share
of
$5.10
(the
“Proposed
Acquisition”)
in
cash
through
a
tender
offer.
ASI
is
currently
the
majority
shareholder
of
Logility,
controlling
approximately
11,300,000
shares,
or
87.9%,
of
the
common
shares
outstanding
of
Logility.
If
ASI
is
able
to
acquire
all
of
the
outstanding
common
stock
currently
not
owned
by
ASI
at
the
proposed
price
of
$5.10
per
share,
ASI
would
acquire
1,560,145
common
shares
and
126,865
net
in-the-money
options
representing
total
consideration
of
$8,603,753.
The
Proposed
Acquisition
purchase
price
of
$5.10
per
share
implies
the
following
equity
value
and
enterprise
value
for
the
Company:
Transaction Overview
Summary
(1)
As of March 5, 2009.
(2)
Based on offer price of $5.10 per share.
Common
Stock
Shares
Outstanding
(1)
12,860,145
Vested
"In-the-Money"
Options
Outstanding,
Net
of
Exercise
Price
(2)
126,865
Common
Stock
Shares
Outstanding
12,987,010
Price
Per
Share
$5.10
Implied
Equity
Value
$66,233,753
Plus:
Debt
as
of
01/31/2009
0
Less:
Cash
and
Investments
as
of
01/31/2009
47,309,000
Implied
Enterprise
Value
$18,924,753


5
Logility
currently has 607,500 options outstanding, including 535,650 vested and 71,800 unvested options:
Transaction Overview
Options Outstanding
Vested Options
Incremental
Vested
Aggregate Exercise
Net Value of Options
Common Share Equivalent
Exercise Price Range
Options
Proceeds
at $5.10/share
at $5.10/share
$1.69-$5.10
413,400
$1,461,326
$647,014
126,865
$5.11-$7.00
12,050
$71,630
0
0
$7.01-$9.00
81,200
$640,694
0
0
$9.01-$11.00
20,000
$200,360
0
0
$11.01-$16.25
9,000
$123,120
0
0
Total
535,650
$2,497,130
$647,014
126,865
Unvested Options
Incremental
Unvested
Aggregate Exercise
Net Value of Options
Common Share Equivalent
Exercise Price Range
Options
Proceeds
at $5.10/share
at $5.10/share
$1.69-$5.10
0
$0
$0
0
$5.11-$7.00
0
$0
0
0
$7.01-$9.00
67,800
$553,506
0
0
$9.01-$11.00
4,000
$43,840
0
0
$11.01-$16.25
0
$0
0
0
Total
71,800
$597,346
$0
0
Total Vested and
607,450
$3,094,476
$647,014
126,865
Unvested


6
Transaction Overview
Transaction Structure and Summary Analysis
($ in thousands)
Note: Assumes announcement date of March 18, 2009.
(1)
Average closing price for relevant number of days including and preceding March 18, 2009.
(2)
Based on 12,860,145 shares outstanding as of 03/05/2009 plus 126,865 shares from the exercise of in-the-money vested stock options.
(3)
Excludes excess cash and investments of $47,309,000 as of 01/31/2009.
Proposed Acquisition
Current Price Per Share
Offer Price Per Share
As of 04/15/2009
$5.10
$5.13
'% Premium (Discount) to Closing Share Price of $5.00 on 03/18/2009
2.0%
2.6%
%
Premium
(Discount)
to
Average
Closing
Price:
(1)
360 Day
(15.9%)
(15.5%)
180 Day
3.5%
4.1%
90 Day
11.4%
12.1%
60 Day
10.9%
11.5%
30 Day
11.5%
12.2%
15 Day
11.6%
12.3%
'% Premium (Discount) to 52-Week High ($9.05 on 04/21/2008)
(43.6%)
(43.3%)
'% Premium (Discount) to 52-Week Low ($3.89 on 03/12/2009)
31.1%
31.9%
Market Value
(2)
$66,234
$66,623
Enterprise Value
(3)
$18,925
$19,314


7
Transaction
Overview
Transaction
Structure
and
Summary
Analysis
Proposed Acquisition
Current Price Per Share
Offer Price Per Share
As of 04/15/2009
$5.10
$5.13
Enterprise Value to:
LTM Total Revenue
0.45
x
0.46
x
Fiscal 2009 Projected Total Revenue
0.46
0.47
Calendar 2009 Projected Total Revenue
0.47
0.47
Fiscal 2010 Projected Total Revenue
0.46
0.47
LTM Maintenance Revenue
0.81
x
0.83
x
Fiscal 2009 Projected Maintenance Revenue
0.82
0.84
Calendar 2009 Projected Maintenance Revenue
0.82
0.84
Fiscal 2010 Projected Maintenance Revenue
0.82
0.83
LTM Maintenance Gross Margin
1.04
x
1.06
x
Fiscal 2009 Projected Maintenance Gross Margin
1.04
1.06
Calendar 2009 Projected Maintenance Gross Margin
1.04
1.06
Fiscal 2010 Projected Maintenance Gross Margin
1.04
1.06
LTM Adjusted EBITDA
2.0
x
2.0
x
Fiscal 2009 Projected Adjusted EBITDA
2.0
2.0
Calendar 2009 Projected Adjusted EBITDA
2.1
2.1
Fiscal 2010 Projected Adjusted EBITDA
2.1
2.2
LTM Adjusted EBIT
2.1
x
2.1
x
Fiscal 2009 Projected Adjusted EBIT
2.1
2.1
Calendar 2009 Projected Adjusted EBIT
2.2
2.3
Fiscal 2010 Projected Adjusted EBIT
2.4
2.4
Equity Value to:
LTM Adjusted Net Income
10.7
x
10.8
x
Fiscal 2009 Projected Adjusted Net Income
11.1
11.1
Calendar 2009 Projected Adjusted Net Income
11.2
11.2
Fiscal 2010 Projected Adjusted Net Income
11.4
11.5
Tangible Book Value as of 01/31/2009
1.48
x
1.49
x
Note: Fiscal represents the year ending April 30.  Calendar year represents the 12 months ending January 31.
Note: Adjustments include stock based compensation and amortization of acquisition-related intangibles.
Note: Forward multiples based on management projections provided April 3, 2009.


8
Overview of Logility
Company Overview
Global provider of collaborative supply chain software that optimizes production, distribution, and inventory management
between trading partners.
Sells two complementary product lines to approximately 1,250 customers worldwide:
Focuses on distribution-intensive industries (retail, consumer goods, soft goods, service parts).
According to management, competitive differentiators include:
Quality of products and domain expertise
Quicker implementation relative to competitors
Quality of customer service
Demand Management
Voyager
Customer typically has more than $1 billion in sales
Approximately 350 active customers
Average sale of $300k for license
Direct sales channel –
gross margins of 75%
Prolonged sales cycle –management-level decision
Competitive market –
pricing pressure
Customer typically has less than $1 billion in sales
Approximately 900 active customers
Average sale of $30k for license
Indirect sales channel –
gross margins of 50%
Shorter sales cycle –
operations-level  decision
Limited competition –
prices have been increasing


9
Overview of Logility
Company Performance
During the last five years, Logility
has grown revenue at a
compounded annual growth rate of 18.4%; maintenance and
license revenues have grown at a CAGR
of approximately 20%.
In early 2008, growth slowed due to economic conditions and
management anticipates flat growth in Fiscal 2009 and 2010.
However, management, as well as industry observers, believe
uncertain economic times can also prompt companies to purchase
supply chain management software to reduce inventory risk and
costs. 
Preliminary signs of recovery through strong Q3 results
and recent growth in the sales pipeline
DMI
is modestly cyclical
Revenue Growth by Type
$0
$10,000
$20,000
$30,000
$40,000
$50,000
2004
2005
2006
2007
2008
License
Services and other
Maintenance
According to management, growth opportunities include:
“Fashion Forecasting”
new module providing a blind forecasting solution to apparel customers
New versions of both Voyager and DMI
soon to be released
Further penetration of chemical and oil/gas industry verticals –
potential acquisition opportunities
Enter the service parts optimization market
($ in thousands)


10
Overview of Logility
Relationship with ASI
Logility
is currently 87.9% owned by ASI.
ASI
financial reporting includes Logility.
Logility
and ASI
Comparison
($ in thousands)
Logility
ASI
Share Price as of 04/15/2009
$5.13
$6.09
Market Capitalization
$66,234
$153,962
Debt as of 01/31/2009
$0
$0
Cash and Investments as of 01/31/2009
$47,309
$70,321
Enterprise Value
$18,925
$83,641
Financial Data:
LTM Revenue
$42,392
$80,673
LTM Adjusted EBITDA
$9,685
$9,352
LTM Adjusted EBIT
$9,178
$7,831
LTM Adjusted Net Earnings
$6,189
$3,483
Trading Multiples:
EV/LTM Revenue
0.45x
1.04x
EV/LTM EBITDA
2.0x
8.9x
EV/LTM EBIT
2.1x
10.7x
LTM P/E Ratio
10.7x
43.7x
% of 52-Week High
56.4%
85.6%
Three Month Average Trading Volume
3,240
66,660
Stock Price Change Since Announcement Date
2.6%
35.6%
Dividends Per Share
$0.00
$0.36


11
Overview of Logility
ASI
Pro Forma for Logility
Acquisition
($ in thousands, except per share data)
Fiscal Year Ended or Ending April 30,
2007
2008
2009
Actual
Actual
Estimate
Adjusted EBITDA
$12,745
$11,945
Plus: Logility
public company expenses
448
472
462
Pro Forma EBITDA
$13,193
$12,417
$462
Adjusted EBIT
$11,204
$10,441
Plus: Logility
public company expenses
448
472
462
Pro Forma EBIT
$11,652
$10,913
$462
Adjusted Diluted Earnings Per Share
$0.36
$0.30
Adjusted Net Income
$9,169
$8,047
Plus: Logility
public company expenses (tax-affected)
281
305
462
Plus: Elimination of Minority Interest (tax-affected)
486
488
713
Pro Forma Net Income
$9,935
$8,840
$1,174
Pro Forma Diluted Earnings Per Share
$0.39
$0.33
Increase in Diluted Earnings Per Share
$0.03
$0.03


0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
Logility
Trading Volume
Logility
Share Price
American Software Share Price
12
Overview of Logility
Logility
and ASI Stock Price Performance
Price Volume Over the Twelve Months Preceding March 18, 2009 (the “Announcement Date”)
4/18/2008:
LGTY
High
-
$9.00
12/23/2008:
LGTY Low
-
$4.00
6/17/2008:
AMSWA
High
-
$6.68
12/01/2008:
AMSWA Low
-
$2.92


40
60
80
100
120
140
160
Logility
Share Price
American Software Share Price
13
Overview of Logility
Logility
and ASI Stock Price Performance
Index Price Performance Over the Twelve Months Preceding the Announcement Date


0
50,000
100,000
150,000
200,000
250,000
300,000
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Logility
Trading Volume
Logility
Share Price
American Software Share Price
14
Price Volume Over the Three Years Preceding the Announcement Date
Overview of Logility
Logility
and ASI Stock Price Performance
10/18/2007:
LGTY
High
-
$14.85
7/23/2007:
AMSWA
High
-
$13.19
12/23/2008:
LGTY
Low
-
$4.00
12/01/2008:
AMSWA
Low
-
$2.92


15
Index Price Performance Over the Three Years Preceding the Announcement Date
Overview of Logility
Logility
and ASI Stock Price Performance
0
50
100
150
200
250
Logility
Share Price
American Software Share Price
0
50
100
150
200
250
Logility
Share Price
American Software Share Price


0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
Logility
Trading Volume
Logility
Share Price
American Software Share Price
16
Price Volume from Logility
IPO to the Announcement Date
Overview of Logility
Logility
and ASI Stock Price Performance
12/30/1999:
LGTY
High
-
$21.00
12/29/2000:
LGTY
Low
-
$1.56
3/13/2000:
AMSWA
High
-
$22.25
4/5/2001:
AMSWA
Low
-
$1.13


0
20
40
60
80
100
120
140
160
180
Logility
Share Price
American Software Share Price
17
Index
Price
Performance
from
Logility
IPO
to
the
Announcement
Date
Overview of Logility
Logility
and ASI Stock Price Performance


18
Price Volume Since the Announcement Date
Overview of Logility
Logility
and ASI Stock Price Performance
3/18/2009:
LGTY
Low
-
$5.00
4/6/2009:
LGTY
High
-
$5.48
4/15/2009:
AMSWA
High
-
$6.09
As of 4/15/2009.
0
10,000
20,000
30,000
40,000
50,000
$4.00
$4.25
$4.50
$4.75
$5.00
$5.25
$5.50
$5.75
$6.00
$6.25
Logility
Trading Volume
Logility
Share Price
American Software Share Price
3/18/2009:
AMSWA
Low
-
$4.49


95
100
105
110
115
120
125
130
135
140
Logility
Share Price
American Software Share Price
19
Index Price Performance Since the Announcement Date
Overview of Logility
Logility
and ASI Stock Price Performance
As of 4/15/2009.


20
Overview of Logility
Logility
and ASI Trading Multiples
Enterprise
Value
to
LTM
Total
Revenue
Enterprise
Value
to
LTM
EBITDA
Price to LTM Cash Earnings Per Share
0.0x
0.5x
1.0x
1.5x
2.0x
2.5x
ASI
Logility
0.0x
2.0x
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
16.0x
ASI
Logility
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
40.0x
45.0x
50.0x
ASI
Logility


($ in millions)
21
Overview of Logility
Financial Comparison to Publicly Traded Competitors
Financial Profile Comparison to Competitors
(1)
Excludes capitalized R&D costs.
(2)
Includes both capitalized and expensed R&D costs.
i2 Technologies,
JDA Software
American
Logility, Inc.
Inc.
Group Inc.
Oracle Corp.
SAP AG
Software, Inc.
LTM Revenue
$42.4
$255.8
$390.3
$23,630.0
$15,454.2
$80.7
LTM Maintenance Revenue
$23.2
$85.4
$182.8
$4,601.0
$4,593.0
$28.4
LTM CAPEX
(1)
$0.1
$1.3
$8.6
$539.0
$473.7
$0.9
LTM R&D
(2)
$7.5
$29.2
$53.9
$2,771.0
$2,270.0
$9.5
1 Year Revenue Growth
2.6%
(1.7%)
4.5%
24.6%
3.3%
5.5%
3 Year Revenue CAGR
19.4%
(8.8%)
21.8%
26.0%
15.3%
7.7%
5 Year Revenue CAGR
44.8%
(11.3%)
13.5%
20.1%
11.8%
26.5%
LTM Gross Margin
68.0%
57.2%
63.7%
79.0%
68.9%
53.1%
LTM EBITDA Margin
22.8%
15.3%
24.9%
47.2%
32.8%
11.6%
LTM EBIT Margin
21.7%
13.9%
22.5%
46.0%
27.9%
9.7%
LTM Return-on-Assets (ROA)
8.4%
8.0%
5.9%
13.2%
14.4%
3.6%
LTM Return-on-Equity (ROE)
11.8%
151.9%
0.8%
26.2%
28.1%
3.3%
LTM CAPEX / Revenue
0.2%
0.5%
2.2%
2.3%
3.1%
1.1%
LTM R&D / Revenue
17.8%
11.4%
13.8%
11.7%
14.7%
11.8%


22
Overview of Logility
Industry Conditions
SCM Application Revenue Estimates
Current economic conditions have impacted the market and have created uncertainty over short-term growth.
2009 and 2010 global IT spending expected to decline 9% and 1%, respectively
Market has become increasingly competitive, especially for large
implementations where SAP and Oracle mostly compete,
creating pricing pressure on market participants.
There has been a recent slowdown in industry consolidation activity from prior years.  Past notable activity includes:
Infor
made five acquisitions in 2006 and 2007
SAP made four acquisitions in 2006 and 2007
JDA acquired Manugistics
in 2006 in addition to one other software business
I2 made two acquisitions in 2006 and 2007
Source: AMR Research, 2008; Goldman Sachs
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
2007
2008
2009
2010
2011
2012
Revenue
Revenue Growth
Supply chain management (“SCM”) applications market
represents a $6.5 billion industry expected to grow at a CAGR
of 7% through 2012
Increasing trend of global sourcing puts emphasis on
supply chain planning
Replacement market is strong
International market penetration (U.S. customers
represent 58% of overall market)
Increased adoption from mid-market companies (40% of
the market consists of companies with +$1 billion sales)


23
Overview of Logility
Ownership Profile
Ownership Breakout
($ in thousands)
American
Software
88%
Institutions
5%
Insiders
1%
Retail
6%
Percent of Total
Market
Holder
Shares
Shares Outstanding (1)
Value (2)
American Software, Inc.
11,300,000
      
87.87%
$57,630
Dimensional Fund Advisors LP
348,664
            
2.71%
1,778
California Public Employees' Retirement System
121,490
             
0.94%
620
Renaissance Technologies Corp.
78,100
                
0.61%
398
J. Michael Edenfield
51,500
                
0.40%
263
H. Allan Dow
48,721
                
0.38%
248
Lapides Asset Management, LLC
34,995
              
0.27%
178
Northern Trust Investments, National Association
23,607
              
0.18%
120
Lotsoff Capital Management
21,600
              
0.17%
110
Spark L.P.
15,149
                 
0.12%
77
Northern Trust Investments, N.A.
11,951
                 
0.09%
61
BNY Mellon Wealth Management
10,093
              
0.08%
51
Barclays Global Investors, National Association
4,442
                  
0.03%
23
Parker H. Petit
4,000
                 
0.03%
20
John A. White
3,500
                 
0.03%
18
Frederick E. Cooper
1,000
                  
0.01%
5
Wells Fargo Bank, National Association, Asset Management Arm
2,425
                  
0.02%
12
Royce & Associates, LLC
1,900
                  
0.01%
10
AXA Rosenberg Investment Management LLC
1,040
                  
0.01%
5
SG Asset Management Alternative Investments
700
                     
0.01%
4
UBS Securities LLC, Investment Arm
514
                      
0.00%
3
Grantham, Mayo, Van Otterloo & Co. LLC
200
                     
0.00%
1
Deutsche Investment Management Americas Inc.
46
                       
0.00%
0
Note: Institutional shares are based on holder's most recent 13F filing.
Note: Insider ownership based on Logility DEF 14A filed on July 28, 2008.
(1) Based on a total of 12,860,145 shares outstanding as of March 5, 2009.
(2) Based on the offer price of $5.10


24
Overview of Logility
Logility
Change in Ownership Over Time
3/31/2007
6/30/2007
9/30/2007
12/31/2007
3/31/2008
Institution
Shares
Shares
Change
Shares
Change
Shares
Change
Shares
Change
American Software, Inc.
11,300,000
   
11,300,000
   
-
                       
11,300,000
   
-
                       
11,300,000
   
-
                       
11,300,000
   
-
                       
Dimensional Fund Advisors LP
342,030
        
342,399
         
369
                  
334,169
         
(8,230)
           
340,427
         
6,258
             
350,953
         
10,526
           
California Public Employees' Retirement System
45,400
           
45,400
           
-
                       
45,400
           
-
                       
121,490
         
76,090
           
121,490
         
-
                       
Renaissance Technologies Corp.
-
                       
25,500
           
25,500
           
42,700
           
17,200
           
57,300
           
14,600
           
68,900
          
11,600
            
J. Michael Edenfield
55,000
           
35,184
            
(19,816)
          
35,184
            
-
                       
35,184
            
-
                       
35,184
            
-
                       
H. Allan Dow
58,721
            
48,721
            
(10,000)
         
48,721
            
-
                       
48,721
            
-
                       
48,721
            
-
                       
Lapides Asset Management, LLC
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
23,000
          
23,000
          
Northern Trust Investments, National Association
27,783
           
24,007
           
(3,776)
            
24,007
           
-
                       
24,007
           
-
                       
24,007
           
-
                       
Lotsoff Capital Management
-
                       
38,300
          
38,300
          
42,100
           
3,800
             
56,000
          
13,900
           
31,300
           
(24,700)
         
Spark L.P.
24,200
           
38,700
           
14,500
           
40,724
           
2,024
             
49,200
           
8,476
             
41,900
           
(7,300)
            
Northern Trust Investments, N.A.
12,238
           
12,238
           
-
                       
12,538
            
300
                 
12,538
            
-
                       
12,538
            
-
                       
BNY Mellon Wealth Management
10,093
           
10,093
           
-
                       
10,093
           
-
                       
10,093
           
-
                       
10,093
           
-
                       
Barclays Global Investors, National Association
4,835
             
4,835
             
-
                       
4,442
             
(393)
                
4,442
             
-
                       
4,442
             
-
                       
Parker H. Petit
3,000
             
3,000
             
-
                       
3,000
             
-
                       
3,000
             
-
                       
3,000
             
-
                       
John A. White
2,500
             
2,500
             
-
                       
2,500
             
-
                       
2,500
             
-
                       
2,500
             
-
                       
Frederick E. Cooper
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Wells Fargo Bank, National Association, Asset Management Arm
2,425
             
2,425
             
-
                       
2,425
             
-
                       
2,425
             
-
                       
2,425
             
-
                       
Royce & Associates, LLC
-
                       
-
                       
-
                       
-
                       
-
                       
4,500
             
4,500
             
4,500
             
-
                       
AXA Rosenberg Investment Management LLC
1,300
             
1,200
             
(100)
                
3,300
             
2,100
             
4,400
             
1,100
              
3,900
             
(500)
                
SG Asset Management Alternative Investments
-
                       
-
                       
-
                       
-
                       
-
                       
700
                  
700
                  
700
                  
-
                       
UBS Securities LLC, Investment Arm
1,064
              
-
                       
(1,064)
            
100
                  
100
                  
-
                       
(100)
                
265
                  
265
                  
Grantham, Mayo, Van Otterloo & Co. LLC
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Deutsche Investment Management Americas Inc.
-
                       
45
                    
45
                    
45
                    
-
                       
46
                    
1
                       
205
                  
159
                  
Bjurman, Barry & Associates
-
                       
-
                       
-
                       
67,065
           
67,065
           
213,367
         
146,302
         
-
                       
(213,367)
        
Credit Suisse Securities (USA) LLC, Investment Arm
-
                       
10,340
10,340
           
-
                       
(10,340)
          
-
                       
-
                       
-
                       
-
                       
FAF Advisors, Inc.
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
7,000
             
7,000
             
FrontPoint Partners LLC
-
                       
-
                       
-
                       
19,016
            
19,016
            
-
                       
(19,016)
          
-
                       
-
                       
Morgan Stanley Investment Management Inc.
10,398
           
75
                    
(10,323)
          
-
                       
(75)
                   
-
                       
-
                       
-
                       
-
                       
Newton Investment Management Limited
-
                       
-
                       
-
                       
750
                  
750
                  
750
                  
-
                       
750
                  
-
                       
QVT Financial LP
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Reinhart Partners, Inc.
-
                       
-
                       
-
                       
-
                       
-
                       
16,930
           
16,930
           
45,931
            
29,001
           
SSgA Funds Management Inc.
43,300
           
43,300
           
-
                       
43,300
           
-
                       
43,300
           
-
                       
43,300
           
-
                       
State Street Global Advisors, Inc.
47,200
           
47,200
           
-
                       
47,200
           
-
                       
47,593
           
393
                  
47,593
           
-
                       
Technical Financial Services LLC
-
                       
-
                       
-
                       
-
                       
-
                       
200
                 
200
                 
-
                       
(200)
                
Teton Advisors, Inc
-
                       
-
                       
-
                       
18,498
           
18,498
           
-
                       
(18,498)
          
-
                       
-
                       
The Vanguard Group, Inc.
11,314
             
-
                       
(11,314)
           
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Wellington Management Company L.L.P.
66,209
           
51,901
            
(14,308)
          
52,302
           
401
                  
24,302
           
(28,000)
         
-
                       
(24,302)
         
Total Institutional Ownership
649,789
         
697,958
         
48,169
           
810,174
          
112,216
          
1,034,010
      
223,836
         
845,192
         
(188,818)
        
Total Institutional Ownership as a % of Total
5.0%
5.4%
6.3%
8.0%
6.5%
Shares Outstanding
Insider Ownership
11,419,221
     
11,389,405
    
(29,816)
          
11,389,405
    
-
                       
11,389,405
    
-
                       
11,389,405
    
-
                       
Insider Ownership as a % of Total Shares Oustanding
88.5%
88.3%
87.9%
87.9%
88.0%
Stock Price Information for Relevant Quarter:
High Closing Price
$8.14
$11.30
$13.03
$14.85
$12.75
Low Closing Price
$6.96
$8.11
$9.28
$10.96
$5.56
Average Closing Price
$7.52
$9.39
$11.30
$13.17
$9.34
Note: Institutional shares are based on holder's most recent 13F filing.
Note: Insider ownership based on Logility DEF 14A filed on July 28, 2008.


25
Overview of Logility
Logility
Change in Ownership Over Time
6/30/2008
9/30/2008
12/31/2008
3/31/2009
Institution
Shares
Change
Shares
Change
Shares
Change
Shares
Change
American Software, Inc.
11,300,000
   
-
                       
11,300,000
   
-
                       
11,300,000
   
-
                       
11,300,000
   
-
                       
Dimensional Fund Advisors LP
349,141
          
(1,812)
             
348,860
        
(281)
                 
348,664
        
(196)
                 
348,664
        
-
                       
California Public Employees' Retirement System
121,490
         
-
                       
121,490
         
-
                       
121,490
         
-
                       
121,490
         
-
                       
Renaissance Technologies Corp.
74,600
           
5,700
             
77,300
           
2,700
             
78,100
           
800
                 
78,100
           
-
                       
J. Michael Edenfield
51,500
           
16,316
            
51,500
           
-
                       
51,500
           
-
                       
51,500
           
-
                       
H. Allan Dow
48,721
            
-
                       
48,721
            
-
                       
48,721
            
-
                       
48,721
            
-
                       
Lapides Asset Management, LLC
27,000
           
4,000
             
27,000
           
-
                       
34,995
           
7,995
              
34,995
           
-
                       
Northern Trust Investments, National Association
24,007
           
-
                       
24,007
           
-
                       
23,607
           
(400)
                
23,607
           
-
                       
Lotsoff Capital Management
31,300
           
-
                       
31,300
           
-
                       
21,600
           
(9,700)
            
21,600
           
-
                       
Spark L.P.
23,600
           
(18,300)
         
17,100
            
(6,500)
           
15,149
            
(1,951)
             
15,149
            
-
                       
Northern Trust Investments, N.A.
12,538
            
-
                       
12,038
           
(500)
                
11,951
             
(87)
                   
11,951
             
-
                       
BNY Mellon Wealth Management
10,093
           
-
                       
10,093
           
-
                       
10,093
           
-
                       
10,093
           
-
                       
Barclays Global Investors, National Association
4,442
             
-
                       
4,442
             
-
                       
4,442
             
-
                       
4,442
             
-
                       
Parker H. Petit
3,000
             
-
                       
3,000
             
-
                       
3,000
             
-
                       
4,000
             
1,000
             
John A. White
2,500
             
-
                       
2,500
             
-
                       
2,500
             
-
                       
3,500
             
1,000
             
Frederick E. Cooper
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
1,000
             
1,000
             
Wells Fargo Bank, National Association, Asset Management Arm
2,425
             
-
                       
2,425
             
-
                       
2,425
             
-
                       
2,425
             
-
                       
Royce & Associates, LLC
1,900
             
(2,600)
           
1,900
             
-
                       
1,900
             
-
                       
1,900
             
-
                       
AXA Rosenberg Investment Management LLC
2,716
              
(1,184)
             
1,640
              
(1,076)
            
1,040
             
(600)
                
1,040
             
-
                       
SG Asset Management Alternative Investments
700
                  
-
                       
700
                  
-
                       
700
                  
-
                       
700
                  
-
                       
UBS Securities LLC, Investment Arm
577
                  
312
                  
-
                       
(577)
                 
514
                  
514
                  
514
                  
-
                       
Grantham, Mayo, Van Otterloo & Co. LLC
200
                 
200
                 
200
                 
-
                       
200
                 
-
                       
200
                 
-
                       
Deutsche Investment Management Americas Inc.
1,671
                
1,466
              
1,655
              
(16)
                   
46
                    
(1,609)
            
46
                    
-
                       
Bjurman, Barry & Associates
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Credit Suisse Securities (USA) LLC, Investment Arm
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
FAF Advisors, Inc.
-
                       
(7,000)
           
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
FrontPoint Partners LLC
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Morgan Stanley Investment Management Inc.
20,000
          
20,000
          
-
                       
(20,000)
         
-
                       
-
                       
-
                       
-
                       
Newton Investment Management Limited
750
                  
-
                       
-
                       
(750)
                
-
                       
-
                       
-
                       
-
                       
QVT Financial LP
21,015
            
21,015
            
20,014
           
(1,001)
            
-
                       
(20,014)
          
-
                       
-
                       
Reinhart Partners, Inc.
-
                       
(45,931)
          
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
SSgA Funds Management Inc.
-
                       
(43,300)
         
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
State Street Global Advisors, Inc.
-
                       
(47,593)
          
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Technical Financial Services LLC
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Teton Advisors, Inc
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
The Vanguard Group, Inc.
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Wellington Management Company L.L.P.
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
-
                       
Total Institutional Ownership
730,165
         
(115,027)
        
702,164
         
(28,001)
         
676,916
         
(25,248)
         
676,916
         
-
                       
Total Institutional Ownership as a % of Total
5.6%
5.4%
5.3%
5.3%
Shares Outstanding
Insider Ownership
11,405,721
     
16,316
            
11,405,721
     
-
                       
11,405,721
     
-
                       
11,408,721
    
3,000
             
Insider Ownership as a % of Total Shares Oustanding
88.1%
88.5%
88.5%
88.7%
Stock Price Information for Relevant Quarter:
High Closing Price
$9.00
$7.59
$6.69
$5.30
Low Closing Price
$6.23
$6.15
$4.00
$4.12
Average Closing Price
$7.43
$6.64
$4.98
$4.71
Note: Institutional shares are based on holder's most recent 13F filing.
Note: Insider ownership based on Logility DEF 14A filed on July 28, 2008.


Insiders
12.2%
Institutions
56.0%
Retail
31.8%
26
Overview of Logility
American Software Ownership Profile
Ownership Breakout
Percent of Total
Market
Holder
Shares
Shares Outstanding (1)
Value (2)
James C. Edenfield
2,041,587
       
8.08%
$11,760
Brown Capital Management Inc.
1,908,251
        
7.55%
$10,992
Renaissance Technologies Corp.
1,598,900
       
6.32%
$9,210
Barclays Global Investors, National Association
1,229,872
        
4.86%
$7,084
Wells Capital Management Incorporated
977,823
           
3.87%
$5,632
Thomas L. Newberry
941,724
           
3.73%
$5,424
Lombardia Capital Partners, LLC
836,824
          
3.31%
$4,820
Dimensional Fund Advisors LP
761,563
           
3.01%
$4,387
Al Frank Asset Management, Inc.
733,297
           
2.90%
$4,224
Perritt Capital Management, Inc.
623,000
          
2.46%
$3,588
Lapides Asset Management, LLC
542,000
          
2.14%
$3,122
Wellington Management Company L.L.P.
533,966
          
2.11%
$3,076
New York State Common Retirement Fund
506,786
          
2.00%
$2,919
Tocqueville Asset Management LP
449,433
          
1.78%
$2,589
The Vanguard Group, Inc.
326,406
          
1.29%
$1,880
State Street Global Advisors, Inc.
268,080
          
1.06%
$1,544
Bmo Harris Investment Management Inc
257,721
           
1.02%
$1,484
Fifth Third Asset Management, Inc.
172,950
           
0.68%
$996
Eagle Asset Management, Inc.
169,510
           
0.67%
$976
Royce & Associates, LLC
166,200
          
0.66%
$957
Goldman, Sachs & Co., Asset Management Arm
158,158
           
0.63%
$911
Northern Trust Global Advisors Inc.
148,231
           
0.59%
$854
Teachers Insurance and Annuity Association College Retirement Equities Fund
144,750
           
0.57%
$834
Northern Trust Investments, N.A.
141,172
            
0.56%
$813
TIAA-CREF Investment Management, LLC
130,601
           
0.52%
$752
California Public Employees' Retirement System
115,990
           
0.46%
$668
Axiom Asset Management, LLC
99,144
             
0.39%
$571
Citigroup Inc., Asset Management Arm
84,080
            
0.33%
$484
BlackRock Investment Management LLC
75,900
             
0.30%
$437
Davenport Asset Management
67,810
             
0.27%
$391
Punch & Associates, Inc.
65,000
            
0.26%
$374
BNY Mellon Wealth Management
64,494
             
0.26%
$371
Wells Fargo Bank, National Association, Asset Management Arm
40,698
            
0.16%
$234
SG Asset Management Alternative Investments
28,800
            
0.11%
$166
J. Michael Edenfield
22,308
            
0.09%
$128
UBS Securities LLC, Investment Arm
6,231
                 
0.02%
$36
Barclays Global Investors Limited
5,955
                
0.02%
$34
Deutsche Investment Management Americas Inc.
1,700
                
0.01%
$10
Indicates common ownership with Logilit
 
Note: Institutional shares are based on holder's most recent 13F filing.
Note: Insider ownership based on Logility DEF 14A filed on July 28, 2008.
(1) Based on a total of 25,281,077 shares outstanding as of March 10, 2009.
(2) Based on share price as of 4/15/2009.


27
Logility
Financial Information
Historical Income Statements
($ in thousands, except per share data)
Latest Twelve
Month Period
Fiscal Year Ended April 30,
Ended
Nine Months Ended
2004
2005
2006
2007
2008
1/31/2009
1/31/2008
1/31/2009
Revenues:
License
$6,656
$6,717
$13,889
$16,242
$14,554
$13,097
$10,409
$8,952
Services and other
5,179
5,203
5,796
6,830
7,807
6,049
5,985
4,227
Maintenance
10,991
12,956
17,618
20,691
22,547
23,246
16,636
17,335
Total revenues
22,826
24,876
37,303
43,763
44,908
42,392
33,030
30,514
Cost of revenues:
License
4,054
3,965
3,783
5,864
6,007
5,221
4,518
3,732
Services and other
2,632
2,721
3,585
3,697
3,804
3,348
2,898
2,442
Maintenance
1,780
3,031
4,134
4,858
4,943
5,000
3,609
3,666
Write down of capitalized computer
-
                  
703
           
-
                  
-
                  
1,196
         
-
                   
1,196
          
-
                   
software development costs
Total cost of revenues
8,466
10,420
11,502
14,419
15,950
13,569
12,221
9,840
Gross margin
14,360
14,456
25,801
29,344
28,958
28,823
20,809
20,674
Operating expenses:
Research and development
2,116
3,170
4,747
5,378
5,341
5,227
3,909
3,795
Sales and marketing
7,239
8,046
10,123
9,778
10,337
10,218
7,279
7,160
General and administrative
3,157
3,715
4,675
5,310
4,625
4,633
3,484
3,492
Provision (recovery) for doubtful accounts
45
197
(53)
7
-
                  
-
                   
-
                   
-
                   
Amortization of acquisition-related intangibles
-
                  
204
350
350
350
349
263
262
Total operating expenses
12,557
15,332
19,842
20,823
20,653
20,427
14,935
14,709
Operating income (loss) (EBIT)
1,803
(876)
5,959
8,521
8,305
8,396
5,874
5,965
Investment impairment
(382)
(100)
(281)
-
                  
-
                  
-
                   
-
                   
-
                   
Interest income
-
                  
-
                  
843
1,228
1,535
1,535
          
-
                   
-
                   
Other income (expense), net
285
397
(95)
375
115
(1,195)
1,451
141
Earnings (loss) before income taxes
1,706
(579)
6,426
10,124
9,955
8,736
7,325
6,106
(Provision) benefit for income taxes
-
                  
(27)
1,587
(4,130)
(3,923)
(3,056)
(2,971)
(2,104)
Net earnings (loss)
$1,706
($606)
$8,013
$5,994
$6,032
$5,680
$4,354
$4,002
Diluted net earnings (loss) per common share
$0.13
($0.05)
$0.60
$0.45
$0.45
$0.43
$0.33
$0.31
EBITDA
$2,250
($412)
$6,621
$9,211
$8,954
$8,903
$6,369
$6,318
Depreciation and amortization
$4,280
$3,064
$2,556
$3,295
$3,090
$2,819
$2,381
$2,110
Less: Capitalized development amortization
(3,833)
(2,600)
(1,894)
(2,605)
(2,441)
(2,312)
(1,886)
(1,757)
Depreciation expense (excl. capitalized development amortization)
$447
$464
$662
$690
$649
$507
$495
$353
Capital expenditures
$86
$415
$196
$269
$197
$69
$189
$61
Additions to capitalized development costs
$3,292
$2,750
$2,423
$2,264
$2,155
$2,312
$1,635
$1,504


28
Logility
Financial Information
Adjustments to Historical Annual Income Statements
Consistent with Logility’s
earnings press releases, VRA made the following adjustments for
stock-based compensation and
non-recurring / one-time items to the Company’s operating results.
($ in thousands, except per share data)


29
Logility
Financial Information
Quarterly Income Statements
($ in thousands, except per share data)
Quarter Ended
4/30/2007
7/31/2007
10/31/2007
1/31/2008
4/30/2008
7/31/2008
10/31/2008
1/31/2009
Revenues:
License
$5,698
$4,677
$3,399
$2,333
$4,145
$2,009
$3,272
$3,671
Services and other
1,940
2,013
2,039
1,933
1,822
1,569
1,387
1,271
Maintenance
5,102
5,275
5,696
5,665
5,911
5,810
5,824
5,701
Total revenues
12,740
11,965
11,134
9,931
11,878
9,388
10,483
10,643
Cost of revenues:
License
1,672
1,634
1,520
1,364
1,489
1,252
1,486
994
Services and other
1,126
1,022
1,023
853
906
902
790
750
Maintenance
1,183
1,080
1,267
1,261
1,334
1,191
1,264
1,211
Write down of capitalized computer
-
                  
-
                  
-
                   
1,196
         
-
                  
-
                  
-
                   
-
                  
software development costs
Total cost of revenues
3,981
3,736
3,810
4,674
3,729
3,345
3,540
2,955
Gross margin
8,759
8,229
7,324
5,257
8,149
6,043
6,943
7,688
Operating expenses:
Research and development
1,665
1,352
1,318
1,239
1,432
1,265
1,287
1,243
Sales and marketing
2,468
2,452
2,426
2,402
3,057
2,475
2,248
2,437
General and administrative
1,496
1,337
1,293
854
1,141
1,229
1,129
1,134
Provision (recovery) for doubtful accounts
-
                  
-
                  
-
                   
-
                  
-
                  
-
                  
-
                   
-
                  
Amortization of acquisition-related intangibles
87
              
88
             
87
                
87
              
88
88
87
87
Total operating expenses
5,716
5,229
5,124
4,582
5,718
5,057
4,751
4,901
Operating income (loss) (EBIT)
3,043
3,000
2,200
675
2,431
986
2,192
2,787
Investment impairment
-
                  
-
                  
-
                   
-
                  
-
                  
-
                  
-
                   
-
                  
Interest income
-
                  
-
                  
-
                   
538
           
-
                  
-
                  
-
                   
-
                  
Other income (expense), net
377
            
409
           
504
             
-
                  
199
156
29
(44)
Earnings (loss) before income taxes
3,420
3,409
2,704
1,213
2,630
1,142
2,221
2,743
(Provision) benefit for income taxes
(1,532)
       
(1,562)
       
(1,031)
         
(378)
          
(953)
(448)
(669)
(987)
Net earnings (loss)
$1,888
$1,847
$1,673
$835
$1,677
$694
$1,552
$1,756
Diluted net earnings (loss) per common share
$0.14
$0.14
$0.13
$0.06
$0.13
$0.05
$0.12
$0.14
EBITDA
$3,217
$3,175
$2,369
$826
$2,585
$1,124
$2,322
$2,893
Depreciation and amortization
$821
$813
$807
$761
$709
$693
$715
$702
Less: Capitalized development amortization
(647)
(638)
(638)
(610)
(555)
(555)
(585)
(596)
Depreciation expense (excl. capitalized development amortization)
$174
$175
$169
$151
$154
$138
$130
$106
Capital expenditures
$42
$46
$79
$64
$8
$20
$24
$28
Additions to capitalized development costs
$586
$525
$630
$480
$520
$507
$516
$482


30
Logility
Financial Information
Adjustments to Historical Quarterly Income Statements
Consistent with Logility’s
earnings press releases, VRA made the following adjustments for
stock-based compensation and
non-recurring / one-time items to the Company’s operating results.
($ in thousands, except per share data)


31
Logility
Financial Information
Forecasted Income Statements
($ in thousands, except per share data)
Fiscal
Fiscal
Calendar
Quarter Ended
Year Ending
Quarter Ended
Year Ending
Year Ending
(1)
7/31/2008
10/31/2008
1/31/2009
4/30/2009
4/30/2009
7/31/2009
10/31/2009
1/31/2010
4/30/2010
4/30/2010
12/31/2009
Revenues:
Actual
Actual
Actual
Estimate
Estimate
Estimate
Estimate
Estimate
Estimate
Estimate
Estimate
License
$2,009
$3,272
$3,671
$3,500
$12,452
$2,250
$2,680
$3,500
$4,000
$12,430
$11,930
Services and other
1,569
1,387
1,271
1,400
5,627
1,400
1,520
1,300
1,280
5,500
5,620
Maintenance
5,810
5,824
5,701
5,752
23,087
5,795
5,780
5,785
5,827
23,187
23,112
Total revenues
9,388
10,483
10,643
10,652
41,166
9,445
9,980
10,585
11,107
41,117
40,662
Cost of revenues:
License
1,252
1,486
994
943
4,675
1,005
1,147
1,211
1,211
4,574
4,306
Services and other
902
790
750
793
3,235
904
777
773
793
3,247
3,247
Maintenance
1,191
1,264
1,211
1,218
4,884
1,200
1,243
1,220
1,243
4,906
4,881
Write down of capitalized computer
-
                  
-
                   
-
                   
-
                  
-
                       
-
                  
-
                   
-
                  
-
                  
-
                       
-
                       
software development costs
Total cost of revenues
3,345
3,540
2,955
2,954
12,794
3,109
3,167
3,204
3,247
12,727
12,434
Gross margin
6,043
6,943
7,688
7,698
28,372
6,336
6,813
7,381
7,860
28,390
28,228
Operating expenses:
Research and development
1,265
1,287
1,243
1,163
4,958
1,074
1,170
1,320
1,462
5,026
4,727
Sales and marketing
2,475
2,248
2,437
2,646
9,806
2,395
2,559
2,726
2,889
10,569
10,326
General and administrative
1,229
1,129
1,134
1,194
4,686
1,255
1,138
1,177
1,184
4,754
4,764
Provision (recovery) for doubtful accounts
-
                  
-
                   
-
                   
25
25
                    
25
              
25
                
25
              
25
              
100
                  
100
                  
Amortization of acquisition-related intangibles
88
             
87
                
87
                
87
              
349
88
88
87
87
350
350
Total operating expenses
5,057
4,751
4,901
5,115
19,824
4,837
4,980
5,335
5,647
20,799
20,267
Operating income (loss) (EBIT)
986
2,192
2,787
2,583
8,548
1,499
1,833
2,046
2,213
7,591
7,961
Investment impairment
-
                  
-
                   
-
                   
-
                  
-
                       
-
                  
-
                   
-
                  
-
                  
-
                       
-
                       
Interest income
-
                  
-
                   
-
                   
345
           
345
                  
300
           
300
            
300
           
300
           
1,200
             
1,245
              
Other income (expense), net
156
            
29
                
(44)
              
(220)
         
(79)
(70)
(70)
(70)
(70)
(280)
(430)
Earnings (loss) before income taxes
1,142
2,221
2,743
2,708
8,814
1,729
2,063
2,276
2,443
8,511
8,776
(Provision) benefit for income taxes
(448)
         
(669)
           
(987)
           
(1,002)
      
(3,106)
(609)
(727)
(802)
(860)
(2,998)
(3,140)
Net earnings (loss)
$694
$1,552
$1,756
$1,706
$5,708
$1,120
$1,336
$1,474
$1,583
$5,513
$5,636
Diluted net earnings (loss) per common share
$0.05
$0.12
$0.14
$0.13
$0.44
$0.09
$0.10
$0.11
$0.12
$0.42
$0.43
EBITDA
$1,124
$2,322
$2,893
$2,734
$9,073
$1,650
$1,984
$2,241
$2,497
$8,372
$8,609
Depreciation and amortization
$693
$715
$702
$285
$2,395
$535
$660
$660
$660
$2,515
$2,140
Less: Capitalized development amortization
(555)
(585)
(596)
(134)
($1,870)
(384)
(509)
(465)
(376)
(1,734)
(1,492)
Depreciation expense (excl. capitalized development amortization)
$138
$130
$106
$151
$525
$151
$151
$195
$284
$781
$648
Capital expenditures
$20
$24
$28
$20
$92
$20
$20
$20
$20
$80
$80
Additions to capitalized development costs
$507
$516
$482
$400
$1,905
$400
$400
$350
$300
$1,450
$1,550
Note: Forward looking financial information provided by Logility management on April 3, 2009.
(1) Represents the sum of estimated quarters ending 4/30/2009, 7/31/2009, 10/31/2009, and 1/31/2010.


32
Logility
Financial Information
Adjustments to Forecasted Income Statements
($ in thousands, except per share data)
Fiscal
Fiscal
Calendar
Quarter Ended
Year Ending
Quarter Ended
Year Ending
Year Ending
(1)
7/31/2008
10/31/2008
1/31/2009
4/30/2009
4/30/2009
7/31/2009
10/31/2009
1/31/2010
4/30/2010
4/30/2010
12/31/2009
Actual
Actual
Actual
Estimate
Estimate
Estimate
Estimate
Estimate
Estimate
Estimate
Estimate
EBITDA
$1,124
$2,322
$2,893
$2,734
$9,073
$1,650
$1,984
$2,241
$2,497
$8,372
$8,609
Plus: Stock-based compensation
114
108
110
110
442
113
115
115
115
458
453
Adjusted EBITDA
$1,238
$2,430
$3,003
$2,844
$9,515
$1,763
$2,099
$2,356
$2,612
$8,830
$9,062
EBIT
$986
$2,192
$2,787
$2,583
$8,548
$1,499
$1,833
$2,046
$2,213
$7,591
$7,961
Plus: Stock-based compensation
114
108
110
110
442
113
115
115
115
458
453
Adjusted EBIT
$1,100
$2,300
$2,897
$2,693
$8,990
$1,612
$1,948
$2,161
$2,328
$8,049
$8,414
Net earnings
$694
$1,552
$1,756
$1,706
$5,708
$1,120
$1,336
$1,474
$1,583
$5,513
$5,636
Plus: Stock based compensation tax-affected
69
75
70
69
284
73
74
74
75
297
291
Adjusted net earnings
$763
$1,627
$1,826
$1,775
$5,992
$1,193
$1,410
$1,548
$1,658
$5,810
$5,927
Adjusted diluted net earnings per share
$0.06
$0.12
$0.14
$0.14
$0.46
$0.09
$0.11
$0.12
$0.13
$0.44
$0.45
Note: Forward looking financial information provided by Logility management on April 3, 2009.
(1) Represents the sum of estimated quarters ending 4/30/2009, 7/31/2009, 10/31/2009, and 1/31/2010.


33
Logility
Financial Information
Annual Income Statement Analysis
2.0%
18.7%
22.7%
24.2%
22.8%
24.5%
22.7%
23.1%
21.5%
EBIT as a Percentage of Total Revenue
7.9%
(3.5)%
16.0%
19.5%
18.5%
19.8%
17.8%
19.5%
20.8%
18.5%
Adjusted EBIT as a Percentage of Total Revenue
7.9%
0.1%
16.9%
21.1%
22.8%
21.7%
23.0%
21.5%
21.8%
19.6%
Net Earnings as a Percentage of Total Revenue
7.5%
(2.4)%
21.5%
13.7%
13.4%
13.4%
13.2%
13.1%
13.9%
13.4%
Adjusted Net Earnings as a Percentage of Total Revenue
9.1%
1.6%
18.9%
14.7%
16.7%
14.6%
17.2%
14.4%
14.6%
14.1%
Latest Twelve
Month Period
Fiscal Year Ended April 30,
Ended
Nine Months Ended
Fiscal Year Ending April 30
2004
2005
2006
2007
2008
1/31/2009
1/31/2008
1/31/2009
2009
2010
Year-Over-Year Revenue Growth:
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Estimate
Estimate
License
(16.8)%
0.9%
106.8%
16.9%
(10.4)%
(18.7)%
(1.3)%
(14.0)%
(14.4)%
(0.2)%
Services and other
(13.0)%
0.5%
11.4%
17.8%
14.3%
(24.8)%
25.3%
(29.4)%
(27.9)%
(2.3)%
Maintenance
1.0%
17.9%
36.0%
17.4%
9.0%
6.9%
6.7%
4.2%
2.4%
0.4%
Total revenues
(8.1)%
9.0%
50.0%
17.3%
2.6%
(7.6)%
6.9%
(7.6)%
(8.3)%
(0.1)%
Gross Margin by Service Line:
License
39.1%
41.0%
72.8%
63.9%
58.7%
60.1%
56.6%
58.3%
62.5%
63.2%
Services and other
49.2%
47.7%
38.1%
45.9%
51.3%
44.7%
51.6%
42.2%
42.5%
41.0%
Maintenance
83.8%
76.6%
76.5%
76.5%
78.1%
78.5%
78.3%
78.9%
78.8%
78.8%
Total gross margin (excl. write-down)
62.9%
60.9%
69.2%
67.1%
67.1%
68.0%
66.6%
67.8%
68.9%
69.0%
Operating Expenses as a Percentage of Total Revenue:
Research and development
9.3%
12.7%
12.7%
12.3%
11.9%
12.3%
11.8%
12.4%
12.0%
12.2%
Sales and marketing
31.7%
32.3%
27.1%
22.3%
23.0%
24.1%
22.0%
23.5%
23.8%
25.7%
General and administrative
13.8%
14.9%
12.5%
12.1%
10.3%
10.9%
10.5%
11.4%
11.4%
11.6%
Provision (recovery) for doubtful accounts
0.2%
0.8%
(0.1)%
0.0%
0.0%
0.0%
0.0%
0.0%
0.1%
0.2%
Amortization of acquisition-related intangibles
0.0%
0.8%
0.9%
0.8%
0.8%
0.8%
0.8%
0.9%
0.8%
0.9%
Total operating expenses
55.0%
61.6%
53.2%
47.6%
46.0%
48.2%
45.2%
48.2%
48.2%
50.6%
EBITDA as a Percentage of Total Revenue
9.9%
(1.7)%
17.7%
21.0%
19.9%
21.0%
19.3%
20.7%
22.0%
20.4%
Adjusted EBITDA as a Percentage of Total Revenue
9.9%
Note: Forward looking financial information provided by Logility management on April 3, 2009.


34
Logility
Financial Information
Quarterly Income Statement Analysis
Note: Forward looking financial information provided by Logility management on April 3, 2009.
Quarter Ended or Ending
4/30/2008
7/31/2008
10/31/2008
1/31/2009
4/30/2009
7/31/2009
10/31/2009
1/31/2010
4/30/2010
Actual
Actual
Actual
Actual
Estimate
Estimate
Estimate
Estimate
Estimate
License
(27.3)%
(57.0)%
(3.7)%
57.4%
(15.6)%
12.0%
(18.1)%
(4.7)%
14.3%
Services and other
(6.1)%
(22.1)%
(32.0)%
(34.2)%
(23.2)%
(10.8)%
9.6%
2.3%
(8.6)%
Maintenance
15.9%
10.1%
2.2%
0.6%
(2.7)%
(0.3)%
(0.8)%
1.5%
1.3%
Total revenues
(6.8)%
(21.5)%
(5.8)%
7.2%
(10.3)%
0.6%
(4.8)%
(0.5)%
4.3%
Gross Margin by Service Line:
License
64.1%
37.7%
54.6%
72.9%
73.1%
55.3%
57.2%
65.4%
69.7%
Services and other
50.3%
42.5%
43.0%
41.0%
43.4%
35.4%
48.9%
40.5%
38.0%
Maintenance
77.4%
79.5%
78.3%
78.8%
78.8%
79.3%
78.5%
78.9%
78.7%
Total gross margin (excl. write-down)
68.6%
64.4%
66.2%
72.2%
72.3%
67.1%
68.3%
69.7%
70.8%