Manugistics net profit rises to 5 cents a share

4th-quarter sales up 105% to $89 million

March 27, 2001|By Andrew Ratner | Andrew Ratner,SUN STAFF

Manugistics Group Inc. said yesterday that its adjusted net income for the fourth quarter rose to $3.7 million, meeting analysts' upbeat expectations.

The Rockville software and consulting company said adjusted net income for the quarter that ended Feb. 28 was 5 cents per diluted share, which compares with a loss of $1.2 million, or 2 cents a share, a year earlier.

Adjusted net income for the year was $8 million, or 12 cents per diluted share, compared with a loss of $8.3 million in the prior year. All earnings reflect a 2-for-1 stock split that took effect Dec. 7.

"I don't see anything that gives me any pause," said analyst Mark Verbach, with Epoch Partners in San Francisco. "They're maybe even a little bit better than expected."

Manugistics reported record revenue for the quarter - $89.3 million, up 105 percent from last year's $43.7 million - and for the year - $268.0 million, up 76 percent from $152.4 million in 2000. Analysts had expected the company to have revenue of $81 million for the quarter, according to First Call/Thomson Financial.

The company is projecting a moderate increase in revenue for the current fiscal quarter, said Raghavan Rajaji, Manugistics' chief financial officer.

The company reported an actual loss for the quarter of $16.7 million, or 26 cents a share, compared with an actual loss of $1.1 million, or 2 cents a share, a year earlier.

For the year, Mangustics' actual loss was $28.1 million, or 48 cents per share, compared to an actual net loss of $8.9 million, or 16 cents per share for the previous fiscal year.

But $25.9 million of its costs, mostly in the fourth quarter, were adjustments related to Manugistics' acquisition of Talus Solutions Inc. on Dec. 21, 2000, and STG Holdings Inc. on Jan. 16 and other purchases related to research and development.

Manugistics makes software that helps companies use the Internet to manage their purchases from suppliers.

Its software license fees generated $49 million in the fourth quarter, up 123 percent from $22 million for the same quarter in fiscal year 2000.

"Supply-chain is a hot area," said W. Christopher Mortenson, an analyst with Deutsche Bank AG in New York.

"It's software you can implement quickly and get an immediate benefit from."

Manugistics' shares lost 89 cents yesterday to close at $25.98 on the Nasdaq stock market prior to the earnings' report release. The stock peaked at nearly $62 on Nov. 2.

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