Madison Reed has raised $32.1 million since launching 15 months ago.
Eddie Capel will replace Pete Sinisgalli on Jan. 1.
Manhattan Associates Inc., a provider of warehouse management and supply chain software, says that Eddie Capel will succeed Pete Sinisgalli as CEO on Jan. 1, 2013. Sinisgalli will continue to serve on Manhattan Associates’ board of directors.
“Over the past few years, our board has worked closely with Pete to develop a succession plan for the CEO position,” says John Huntz, chairman of the board of directors at Manhattan Associates. “Eddie Capel has proven to be a highly qualified, experienced leader, and we have great confidence he will continue to drive Manhattan Associates’ market leadership and financial success.”
Capel, who has been the company’s chief operating officer since January 2011, will hold the title of president until taking over as CEO in January. He joined the company 12 years ago. “This is an ideal time for a CEO transition. The company is in very good shape strategically, competitively, operationally and financially,” Sinisgalli says.
Manhattan Associates announced the executive change along with its second quarter results. Revenue in the second quarter of 2012 reached $93.6 million, up 5.9% compared with $88.4 million in the second quarter of 2011. Revenue from licensing the company’s warehouse management and other software amounted to $15.3 million in Q2, down 6.1% compared with $16.3 million in 2011. “License revenue in Q2 was a little below our expectations as a few large deals slipped into Q3,” Sinisgalli said during an earnings call this week. “But offsetting the large deal slippage was a strong showing of mid-sized deals.”
The rest of the company’s revenue comes from selling professional services and hardware, which brought in $69.3 million and $8.9 million respectively in Q2. Both of those figures show increases compared with Q2 last year, with services up 8.6% from $63.8 million and hardware up 7.2% from $8.3 million.
“Our investments in research and development over the past few years are paying off,” Sinisgalli said, referring to Manhattan’s investments in its order management and warehouse management technologies over the last two years. “Retailers are looking to integrate all touch-points with customers and have a seamless consumer experience, and our solution greatly helps with that,” he said.
The company plans to add more than 100 employees in 2012, largely in the professional services team, he said.
Manhattan’s revenue is bolstered by two new contracts of $1 million or more in license revenue that closed in the second quarter this year, as well as new client contracts and expanded existing relationships, the company says. Although the company did not say which businesses were involved, Sinisgalli says both of the large deals were with new retailer clients in the Americas for Manhattan Associate’s warehouse management system.