Manhattan Associates Announces Record Revenues and Record Earnings
Revenues Increase 20%, Marking the Eleventh Consecutive Quarter Of Meeting or Exceeding Consensus Earnings Per Share Estimates
ATLANTA, July 25 -- Manhattan Associates, Inc., (NASDAQ: MANH) , the global leader in extended supply chain execution solutions, today announced record results for the second quarter ended June 30, 2002. These results mark the eleventh consecutive quarter Manhattan Associates has met or exceeded the First Call consensus earnings per share estimates of the financial analysts covering the Company.
Key quarterly financial highlights for Manhattan Associates include:
* Software fees for the quarter ended June 30, 2002 were a record
$10.2 million, an increase of 9% over the first quarter of 2002 and the
second quarter of 2001.
* Services revenue for the quarter ended June 30, 2002 was a record
$28.2 million, an increase of 7% and 18% over the first quarter of 2002
and the second quarter of 2001, respectively.
* Net income for the quarter was up 30% from one year ago to
$6.2 million, or $0.20 per fully diluted share. Adjusted net income,
which excludes the amortization of acquisition-related intangible
assets, net of taxes, was a record $6.6 million for the quarter, or
$0.21 per fully diluted share, an increase of 17% over the prior year.
* Cash and short-term investments increased by $12 million during the
quarter, after payment of the final $5.25 million of acquisition-
related debt. Total cash and short-term investments were a record
$125.9 million at June 30, 2002.
* Cash flow from operations for the quarter was a record $16.6 million.
* Days Sales Outstanding (DSOs) remained strong at 63 days, down two days
from March 31, 2002.
"During the quarter, we continued to build on our strong foundation of excellent products, talented people and customer partnerships, further enhancing our position for continued growth and profitability," said Richard Haddrill, Manhattan Associates` CEO and president. "We are extremely pleased with our success at broadening our product suite, the industries we serve and our geographic presence in this challenging economic environment."
For the six months ended June 30, 2002, total revenues were $87.3 million, an increase of approximately 17% over the first six months of 2001. Net income was $11.8 million, or $0.38 per fully diluted share for the six months ended June 30, 2002. Adjusted net income, which excludes the amortization of acquisition-related intangible assets, net of taxes, was $12.4 million, or $0.41 per fully diluted share.
Other key quarterly highlights for Manhattan Associates include:
* Key new customers that signed in the quarter include Sysco Corporation;
American Honda Motor Company; Cambridge University Press; Converse,
Inc.; Halfords Limited; Monrovia
Growers, Inc.; and Jefferson Smurfit
Corporation (U.S.) and Stone Container Corporation.
* Continued to further our partnership with many existing clients,
including Sara Lee Activewear; Ryder Integrated Logistics Services,
Inc.; The Plow & Hearth, Inc.; Innotrac Corporation; Exel plc; and
Newell Rubbermaid, Inc.
* Licenses of our optimization and collaboration products represented
approximately 24% of software fees for the quarter.
* Announced the release of PkMS(R) 2002R1, the latest version of the
Company`s industry leading supply chain execution system. The new
version offers significant functionality enhancements for customers
across all eight of the Company`s targeted industries.
* Announced the release of SmartInfo(R) 2002R1, the latest version of
Manhattan Associates` customizable business intelligence tool. By
adding monitoring, measuring and alerting to the product`s powerful
data analysis and decision support functionality, SmartInfo 2002R1
provides an industry-leading event management solution for optimizing
supply chain operations.
* Selected by FORTUNE Small Business Magazine for its FSB 100: FORTUNE
Small Business` second annual list of the 100 Fastest Growing publicly
traded small businesses in America. Manhattan Associates was ranked
no. 43 and was the only supply chain technology company named to the
list.
* Announced the appointment of Eric Peters as the company`s senior vice
president of marketing and alliances. Prior to joining Manhattan
Associates, Peters was founder and CEO of an Accenture affiliate
company that was breaking new ground in the field of Internet security
and Web services. Previously, Peters held a variety of positions at
Accenture, including associate partner in the company`s supply chain
strategy practice and membership in its executive global leadership
committee for the distribution practice.
* Strengthened international operations by moving Ed Quibell, vice
president, to Europe as managing director; hiring industry expert Jez
Tongue as director of sales - EMEA; and hiring Brent Minnick as
director of Latin American sales to lead our efforts in South and
Central America.
* Opened an office in Utrecht, The Netherlands. The new office will
serve as a Center of Excellence, employing both programming and
implementation specialists, who will combine European market and
technical skills to help us further develop our European market share.
* Hosted our 8th Annual Users Conference, `Momentum 2002`, in April 2002.
The conference, which was held in Atlanta, attracted over 665 attendees
and consisted of three days of advanced educational sessions and
networking events.
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 (http://www.manh.com/ ). Beginning September 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 October 2002.
For the fiscal year ending December 31, 2002, Manhattan Associates currently expects to achieve adjusted earnings in the range of $0.82 to $0.92 per fully diluted share. For the quarter ending September 30, 2002, Manhattan Associates currently expects to achieve adjusted earnings in the range of $0.18 to $0.24 per fully diluted share. These expectations assume a modest improvement in capital expenditures and the current general economic environment 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 manufacturers, distributors and retailers. For more information about Manhattan Associates telephone 770.955.7070 or visit http://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.
CONTACT:
Tom Williams, Chief Financial Officer
Manhattan Associates Inc.
+1-770-955-7070
twilliams@manh.com
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