Logility Reports Preliminary Fourth Quarter and Fiscal Year 2008 Results
Company Reports 12th Consecutive Quarter of Profitability and Record Revenues for the Fiscal Year
Atlanta / ATLANTA (June 18, 2008) – Logility, Inc. (Nasdaq: LGTY),a leading supplier of collaborative solutions to optimize the supply chain,today announced financial results for the fourth quarter and fiscal year 2008,achieving 12 consecutive quarters of profitability and record revenues for thefiscal year.
Key fourth quarter financial highlights include:
— Total revenues for the quarter ended April 30, 2008 were $11.9 million,a decrease of 8% over the fourth quarter of fiscal 2007;
— Software license fees for the quarter ended April 30, 2008 were $4.1million, a decrease of 27% over the fourth quarter of fiscal 2007;
— Services and other revenues for the quarter ended April 30, 2008 were$1.8 million, a decrease of 11% over the fourth quarter of fiscal 2007;
— Maintenance revenues for the quarter ended April 30, 2008 were $5.9million, an increase of 16% over the fourth quarter of fiscal 2007; and
— Operating earnings for the quarter ended April 30, 2008 wereapproximately $2.4 million, a decrease of 23% compared to operating earningsfor the fourth quarter of fiscal 2007.
GAAP net earnings were $1.7 million or $0.13 earnings per fully dilutedshare for the fourth quarter of fiscal 2008 compared to net earnings of $2.0million or $0.15 earnings per fully diluted share for the fourth quarter offiscal 2007. Adjusted net earnings, which exclude stock option compensationexpense and acquisition-related amortization of intangibles expense, for thequarter ended April 30, 2008 were $1.8 million or $0.14 earnings per fullydiluted share compared to adjusted net earnings of $2.1 million or $0.16earnings per fully diluted share for the same period last year.
Key fiscal year 2008 financial highlights include:
— Total revenues for the twelve months ended April 30, 2008 were a record$44.9 million, a 3% increase compared to the prior fiscal year;
— Software license fees for the year ended April 30, 2008 were $14.6million, a 10% decrease compared to the prior fiscal year;
— Services and other revenues for the year ended April 30, 2008 were $7.8million, a 14% increase compared to the prior fiscal year;
— Maintenance revenues were a record $22.5 million for the year endedApril 30, 2008, a 9% increase compared to the prior fiscal year; and
— For the year ended April 30, 2008, the Company reported operatingearnings of approximately $8.3 million, a 3% decrease compared to operatingearnings of $8.5 million for the same period last year; operating earnings forthe twelve months ended April 30, 2008 included a non-cash write-down ofcapitalized software development costs of $1.2 million.
GAAP net earnings were approximately $6.0 million or $0.45 per fullydiluted share for both the twelve months ended April 30, 2008 and April 30,2007 period. Adjusted net earnings, which for the current period exclude stockoption compensation expense, acquisition-related amortization of intangiblesexpense, a non-cash tax valuation adjustment, and write-down of capitalizedsoftware costs, for the twelve months ended April 30, 2008 were $7.5 millionor $0.56 earnings per fully diluted share compared to net earnings of $6.4million or $0.49 earnings per fully diluted share the same period last year.
The Company is including adjusted net earnings and adjusted net earningsper share in the summary financial information provided with this pressrelease as supplemental information relating to its operating results. Thisfinancial information is not in accordance with, or an alternative for, GAAPand may be different from non-GAAP net earnings and non-GAAP per sharemeasures used by other companies. The Company believes that this presentationof adjusted net earnings and adjusted net earnings per share provides usefulinformation to investors regarding certain additional financial and businesstrends relating to its financial condition and results of operations.
The overall financial condition of the Company remains strong, with cashand investments of approximately $42.7 million as of April 30, 2008. This isapproximately a $1.4 million sequential increase in cash and investmentscompared to January 31, 2008 and approximately a $10.4 million increasecompared to April 30, 2007. During the quarter, the Company repurchased114,421 of its common shares for approximately $787,000 under its authorizedstock repurchase program. For fiscal year 2008, the Company purchased a totalof 144,421 of its common shares for approximately $1.1 million under itsauthorized stock repurchase program.
‘During fiscal year 2008, Logility delivered record revenues, increasedadjusted net income and welcomed 101 new customers,’ noted Mike Edenfield,Logility president and CEO. ‘I remain confident in our solutions, people,business strategy and ability to compete and win.’
‘In a slow economy, businesses try to identify ways to increase assetproductivity, lower operating costs and spur sales. For manufacturing- anddistribution-intensive companies in retail, consumer goods, wholesale andindustrial sectors, supply chain optimization is a key way to lower costs.Hard economic times reward lean supply chains that can react rapidly tochanging customer demand.
Source: Logility
