Manhattan Associates Announces Record Software Fees and Services Revenue
Software Fees Increase 20%, Marking the Tenth Consecutive Quarter of
Meeting or Exceeding Consensus Earnings Per Share Estimates
ATLANTA, April 24 --
Manhattan Associates, Inc., (Nasdaq: MANH), the global leader in extended
supply chain execution solutions, today announced record results for the first
quarter ended March 31, 2002. These results mark the tenth consecutive
quarter Manhattan Associates has met or exceeded the First Call consensus
earnings per share estimates of the financial analysts covering the Company.
For the quarter ended March 31, 2002, software fees were a record $9.4
million, representing increases of 20% and 4% over the first and fourth
quarters of 2001, respectively. Services revenue was a record $26.4 million,
representing increases of 12% and 4% over the first and fourth quarters of
2001, respectively. Total revenue was a record $42.1 million, an increase of
13% over revenue of $37.3 million for the quarter ended March 31, 2001.
Net income was $5.5 million or $.18 per fully diluted share for the first
quarter ended March 31, 2002, as compared to net income of $4.3 million or
$.14 per fully diluted share for the first quarter of 2001. Excluding the
amortization of acquisition-related intangible assets, net income was $5.8
million or $0.19 per fully diluted share for the first quarter ended March 31,
2002, as compared to net income, excluding the amortization of acquisition-
related intangible assets, of $5.1 million or $0.17 per fully diluted share
for the first quarter of 2001.
"We posted another strong performance this quarter, despite a business
environment that remains challenging. Our ability to execute as a team and the
tremendous individual efforts of our employees continue to propel us forward
and further cement our leadership position in the extended supply chain
execution market. We are extremely pleased with our results and remain excited
about our future," said Manhattan Associates President and CEO Richard
Haddrill.
Other key quarterly highlights for Manhattan Associates include:
* Cash and short-term investments continued to grow, increasing by
$9.7 million, or 9%, during the quarter to $113.9 million.
* Days Sales Outstanding (DSOs) remained strong at 65 days.
* International revenue from software and services for the quarter ended
March 31, 2002 was $6.4 million, representing 18% of revenue from our
core business drivers and growth of 15% over the quarter ended March
31, 2001. We announced our expansion into Japan, which is being led by
Alan Dabbiere, chairman and principal founder.
* Key new customers that signed in the quarter include The Columbia House
Company; Discount Drug Mart, Inc.; Ingram Book Company; Olympus
America, Inc.; Promax Automotive; Recreational Equipment, Inc.; South
Marston DC Ltd.; TNT Logistics; and VoiceStream Wireless Corporation.
* Signed six new infolink customers, including BALI, a division of Sara
Lee Corporation; Burberry Ltd.; Chico`s FAS, Inc.; The Hillman Group;
South Marston DC Ltd.; and TNT Logistics. The total number of infolink
customers now stands at 31.
* Manhattan Associates continued to further its partnership with many
existing clients, including The Children`s Place, Jones Apparel, Russ
Berrie and Tone Brothers.
* Sales of our optimization and collaboration products represented
approximately 28% of software fees for the quarter, including our
largest stand-alone optimization and collaboration sale to date.
* Announced plans for enhanced, comprehensive yard management
functionality to augment PkMS. Designed for large customers with
extensive distribution operations, this new functionality provides the
user with the ability to manage inventory and orders even before the
formal receiving process.
* Released Logistics PRO(R) 7.0, an enhanced version of Manhattan
Associates` leading transportation management system. Logistics PRO 7.0
provides companies with recent requirements for such major carriers as
Airborne, FedEx Home and FedEx Ground, as well as additional Canadian
carrier support. Additionally, the new release includes a Carrier
Compliance Toolkit that helps companies to easily adapt to the
individual needs of smaller carriers.
* Announced a worldwide strategic marketing alliance with
JDA Software Group, Inc., the leading global provider of
integrated software and professional services to retailers and their
suppliers. Under the terms of the agreement, Manhattan Associates and
JDA will develop, maintain and support a standard tool set to ensure
ease of integration between the two companies` solutions, and the
companies will share and assist each other in prospective sales
opportunities.
* Announced a corporate alliance agreement with FKI Logistex
(London: FKI.L), a global automated material handling equipment firm.
Under the alliance both companies will jointly create and support a
standard toolset that will enhance the integration between Manhattan
Associates` PkMS offering and FKI Logistex`s order processing and
warehouse control systems (WCS) for the companies` joint customers.
* Announced a joint marketing and business development alliance with
Sun Microsystems, Inc. that will enable the Company`s
extended supply chain execution solutions to run within Sun`s
Solaris(TM) Operating Environment.
* We continued forward, at Kmart`s request, with the implementation of
PkMS as an integral part of Kmart`s supply chain
improvement initiatives receiving payment for our post-bankruptcy
services in ordinary course.
Change in Auditors
The Company also announced today that its board of directors has appointed
Ernst & Young LLP as the Company`s independent accountants for 2002. "We look
forward to working with Ernst & Young in the firm`s new role as our
independent accountants," said Manhattan Associates CFO Tom Williams.
Prior to the selection of Ernst & Young, Arthur Andersen LLP had served as
the company`s independent accountants. The decision to change auditors was
not the result of any disagreement between the Company and Arthur Andersen on
any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure.
Williams added, "We value greatly the professional services provided by
Arthur Andersen over the years and appreciate the excellent work provided by
their Manhattan Associates team."
Business Outlook for 2002
Manhattan Associates currently intends to publish in each quarterly
earnings release certain expectations for the next quarter and the related
fiscal year with respect to future financial performance. The following
statements regarding future financial performance are based on current
expectations. These statements are forward-looking. Actual results may differ
materially, especially in an uncertain economic environment. These statements
do not reflect the potential impact of mergers, acquisitions or other business
combinations that may be completed after the date of this release.
Manhattan Associates will make its earnings release and published
expectations available on its Web site (www.manh.com ). Beginning June 15,
2002, Manhattan Associates will observe a "Quiet Period" during which
Manhattan Associates and its representatives will not comment concerning
previously published financial expectations. Prior to the start of the Quiet
Period, the public can continue to rely on the expectations published in this
Business Outlook section as still being Manhattan Associates` current
expectation on matters covered, unless Manhattan Associates publishes a notice
stating otherwise. The public should not rely on previously published
expectations during the Quiet Period, and Manhattan Associates disclaims any
obligation to update any previously published financial expectations during
the Quiet Period. The Quiet Period will extend until the date when Manhattan
Associates` next quarterly earnings release is published, presently scheduled
for the third or fourth week of July 2002.
For the fiscal year ending December 31, 2002, Manhattan Associates
currently expects to achieve adjusted earnings in the range of $0.83 to $0.93
per fully diluted share. For the quarter ending June 30, 2002, Manhattan
Associates currently expects to achieve adjusted earnings in the range of
$0.19 to $0.22 per fully diluted share. These expectations assume that the
current general economic environment will improve modestly over the balance of
the year.
About Manhattan Associates, Inc.
Manhattan Associates, Inc., is the global leader in providing extended
supply chain execution solutions. We enable operational excellence through
real-time collaboration, execution and optimization. Our solutions leverage
state-of-the-art technologies, innovative practices and our domain expertise
to enhance performance, profitability and competitive advantage. Manhattan
Associates has licensed more than 800 customers representing 1,100 facilities
worldwide, which include some of the world`s leading manufacturers,
distributors and retailers. For more information about Manhattan Associates
telephone 770.955.7070 or visit www.manh.com .
This press release may contain "forward-looking statements" relating to
Manhattan Associates, Inc. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and that actual results may differ materially
from those contemplated by such forward-looking statements. Among the
important factors that could cause actual results to differ materially from
those indicated by such forward-looking statements are delays in product
development, undetected software errors, competitive pressures, technical
difficulties, market acceptance, availability of technical personnel, changes
in customer requirements and general economic conditions. Additional factors
are set forth in "Safe Harbor Compliance Statement for Forward-Looking
Statements" included as Exhibit 99.1 to the Company`s Annual Report on Form
10-K for the year ended December 31,2001. Manhattan Associates undertakes no
obligation to update or revise forward-looking statements to reflect changed
assumptions, the occurrence of unanticipated events or changes in future
operating results.
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