Manugistics Group seeks merger partner Rockville company reports another loss for quarter

Software

December 23, 1998|By Mark Ribbing | Mark Ribbing,SUN STAFF

Manugistics Group Inc., a Rockville-based inventory-management software company, said yesterday that it suffered another quarterly net loss and is seeking a merger partner.

Manugistics has been in an extended slump, posting net losses for the first two quarters of its fiscal year as it struggled to meet the costs of acquiring other firms and reorganizing its sales force.

The problems continued in Manugistics' third quarter, which ended Nov. 30. For the quarter, the company recorded a net loss of $10.4 million, or 39 cents per diluted share. This was a bigger loss than Wall Street had expected; one survey of analysts projected a net loss of only 6 cents per share.

In the same quarter last year, Manugistics had net income of $3.8 million, or 14 cents per diluted share.

"It's obvious that we have not yet recovered from the problems we experienced earlier this year," said William M. Gibson, Manugistics' chairman and chief executive officer.

Manugistics had $43 million in total quarterly revenue, 2.1 percent more than the $42.2 million it brought in during last year's third quarter.

The company said it is talking with other companies about a possible merger, but declined to identify those firms.

"There can be no assurance that a combination may occur," Gibson said. "We are in discussions. We are going to make some decisions in January with regard to our strategic direction and will start executing it at that time."

The earnings report was released after the market's close.

Manugistics shares fell 87.5 cents, to $13.0625, before trading was halted. As recently as May, the stock was trading at more than $60 a share.

Pub Date: 12/23/98

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