Manhattan Associates Announces Record Second Quarter
ATLANTA--(BUSINESS WIRE)--July 18, 2000--
Software Fees up 84% from 1999 Total Revenue of $34.6 Million,
up 75% From 1999 Record Net Income of $4.5 Million
Manhattan Associates, Inc., (NASDAQ: MANH), the global leader in providing supply chain execution solutions, today announced record revenue and net income for the second quarter ended June 30, 2000.
Revenue for the second quarter ended June 30, 2000 was $34.6 million, an increase of 22% from revenue of $28.3 million for the first quarter ended March 31, 2000 and an increase of 75% from revenue of $19.8 million for the second quarter ended June 30, 1999. Software fees for the second quarter ended June 30, 2000 were $5.7 million, an increase of 13% from software fees of $5.0 million for the first quarter of 2000 and an increase of 84% from software fees of $3.1 million for the second quarter of the prior year. Services revenue for the second quarter ended June 30, 2000 was $19.2 million, an increase of 10% over services revenue of $17.5 million for the first quarter of 2000 and 50% over services revenue of $12.8 million for the second quarter of the prior year.
Net income for the second quarter ended June 30, 2000 was $4.5 million, or $0.15 per diluted share, compared to net income of $2.9 million, or $0.10 per diluted share in the first quarter of 2000 and a net loss of $0.8 million, or $0.03 per diluted share in the second quarter of the prior year.
For the six months ended June 30, 2000, revenue was $63.0 million, an increase of 66% compared to revenue of $38.0 million for the six months ended June 30, 1999. Net income was $7.5 million, or $0.25 per diluted share, for the six months ended June 30, 2000 compared to a net loss of $520,000, or $0.02 per diluted share, for the six months ended June 30, 1999.
"We are pleased with the strength of revenues and profitability from our core business. We have acquired significant new customers during the quarter and expanded initiatives with existing customers," said Richard Haddrill, Manhattan Associates' president and CEO. "We are excited about the continued evolution of our existing products as well as our new products, which we expect to release over the next six to nine months. These technologies will continue to provide our customers a competitive advantage in managing their supply chain."
Other key achievements in the quarter for Manhattan Associates include:
-- Increased cash, cash equivalents and short-term investments by
$10.0 million to $60.3 million at June 30, 2000.
-- Signed significant new customers; including Staples, Inc.,
Ingram Industries, Inc. and Innotrac Corp., and an expanded
partnership with ToysRUs.com.
-- Continued progress on InfoLink(TM), its new Business Community
Integration (BCI) solution. This product, scheduled for
release on September 30, 2000, links suppliers, retailers,
transportation companies, and the newly emerging Internet
trading exchanges using Microsoft Corporation's XML schemas
and BizTalk(TM) framework.
-- Successful assembly of its InfoLink Advisory Council,
obtaining signed agreements with leading retailers Nordstroms,
Inc., The Limited, Inc., and Dillard's, Inc., who join
Federated Department Stores, Inc.
-- Announces its Manager's Workbench warehouse business
intelligence product, with planned availability in November
2000. This new product utilizes Microsoft's SQL Server 2000
Analytical Services and integrating into Microsoft's Digital
Dashboard technology.
-- Added key executives to its management team including;
-- Eddie Capel, vice president InfoLink, previously executive
vice president of Real Time Solutions, a supply chain
technology company.
-- Gary Brown, senior director e-commerce consulting, with 23
years of consulting experience, including with KPMG and
Ernst & Young.
-- Allen Scott, director of international operations,
previously managing director of Universal Integrated
Solutions.
-- Dennis Castaldi, lead e-business architect, previously
chief system architect for Shared Medical Systems, a $4.3
billion company.
-- Don Farrell, business process improvement specialist, to
lead our process improvement and ISO 9000 initiative, with
over 30 years of related industry experience.
-- Held its 6th Annual User Conference, attracting a record
650 attendees, with keynote addresses by Peter Tarrant,
vice president, e-business marketing for IBM, and William
G. (Gus) Pagonis, executive vice president of logistics,
Sears Roebuck & Company.
About Manhattan Associates:
Manhattan Associates Inc. is the global leader in providing dynamic execution solutions that enable collaboration across the supply chain for our customers with their trading partners and e-marketplaces. These solutions leverage state-of-the-art technologies, innovative practices, and our domain expertise to enhance performance, profitability, and competitive advantage. Operating in six target markets: e-fulfillment, retail, apparel/footwear, consumer goods manufacturing, food/grocery, and third party logistics, Manhattan Associates has licensed more than 475 customers representing 750 facilities worldwide. For more information about Manhattan Associates Inc., 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, 1999. 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. -0-
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MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- ------------------
2000 1999 2000 1999
------ ------ ------ ------
Revenue:
Software fees $ 5,686 $ 3,095 $ 10,722 $ 7,532
Services 19,228 12,811 36,772 23,769
Hardware 9,714 3,933 15,477 6,688
------ ------ ------ ------
Total revenue 34,628 19,839 62,971 37,989
Cost of revenue:
Software fees 539 386 816 576
Services 8,029 7,542 16,191 13,584
Hardware 7,988 3,000 12,689 5,044
------ ------ ------ ------
Total cost of revenue 16,556 10,928 29,696 19,204
------ ------ ------ ------
Gross margin 18,072 8,911 33,275 18,785
Operating expenses:
Research and development 3,042 3,082 6,088 5,801
Sales and marketing 4,631 4,043 8,608 8,087
General and
administrative 3,683 3,266 7,550 6,274
------ ------ ------ ------
Total operating
expenses 11,356 10,391 22,246 20,162
------ ------ ------ ------
Operating income (loss) 6,716 (1,480) 11,029 (1,377)
Other income, net 587 271 990 533
------ ------ ------ ------
Income (loss) before
income taxes 7,303 (1,209) 12,019 (844)
Income tax provision
(benefit) 2,775 (449) 4,567 (324)
------ ------ ------ ------
Net income (loss) $ 4,528 $ (760) $ 7,452 $ (520)
====== ====== ====== ======
Basic net income
(loss) per share $ 0.18 $ (0.03) $ 0.30 $ (0.02)
====== ====== ====== ======
Diluted net income
(loss) per share $ 0.15 $ (0.03) $ 0.25 $ (0.02)
====== ====== ====== ======
Weighted average
number of shares:
Basic 24,668 24,029 24,517 24,006
====== ====== ====== ======
Diluted 29,832 24,029 29,444 24,006
====== ====== ====== ======
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2000 1999
-------------- --------------
ASSETS
Current Assets:
Cash and cash equivalents $ 41,186 $ 19,695
Short-term investments 19,068 20,220
Accounts receivable, net
of allowance for doubtful
accounts of $5,041 and
$5,473 at June 30, 2000 and
December 31, 1999, respectively 26,018 24,275
Prepaid expenses and other
current assets 4,584 4,187
-------------- --------------
Total current assets 90,856 68,377
Property and equipment, net 9,050 9,245
Intangible and other assets 2,817 3,301
-------------- --------------
Total assets $ 102,723 $ 80,923
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued liabilities $ 16,931 $ 12,215
Current portion of
capital lease obligations 171 163
Deferred revenue 14,378 9,051
-------------- --------------
Total current liabilities 31,480 21,429
Long-term portion of capital
lease obligations 710 799
Deferred income taxes -- 89
Total shareholders' equity 70,533 58,606
-------------- --------------
Total liabilities and
shareholders' equity $ 102,723 $ 80,923
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CONTACT: Manhattan Associates, Inc.
Tom Williams, 770/955-7070
twilliams@manh.com