Manhattan Associates Reports First Quarter Earnings; Software Fees up 56% and Adjusted Net Income of $0.17, up 71% over Prior Year

Apr 26, 2001, 01:00 ET from Manhattan Associates

    ATLANTA, April 26 /PRNewswire/ --
 Manhattan Associates, Inc., (Nasdaq:   MANH), a global leader in providing
 supply chain execution and collaborative commerce solutions, today announced
 earnings for the first quarter ended March 31, 2001.
     Software fees for the first quarter ended March 31, 2001, were
 $7.8 million, an increase of 56% over software fees of $5.0 million for the
 first quarter of 2000.  Services revenue for the first quarter ended March 31,
 2001, was $23.5 million, an increase of 34% over services revenue of
 $17.5 million for the first quarter of 2000.  Total revenue for the first
 quarter ended March 31, 2001, was $36.1 million, an increase of 27% over
 revenue of $28.3 million for the first quarter ended March 31, 2000.
     Adjusted net income for the first quarter of 2001, which excludes the
 effect of amortization expense for acquisition-related intangibles, increased
 by 71% over the first quarter of 2000.  Adjusted net income for the quarters
 ended March 31, 2001, and March 31, 2000, was $5.1 million, or $0.17 per
 diluted share, and $3.0 million, or $0.10 per diluted share, respectively.
     "We are pleased with our business during the quarter. We significantly
 increased our core revenues and profits from one year ago, made excellent
 progress with new products and infrastructure and managed our costs
 appropriately," said Richard Haddrill, Manhattan Associates' CEO and
 president.  "Our industry-leading technology, which provides a strong Return
 on Investment (ROI) for customers, along with our solid financial position and
 loyal install base, served us well this quarter and should continue to do so
 going forward."
     Key achievements in the quarter for Manhattan Associates include:
     *  Formed an alliance with Manugistics Group, Inc., the leading global
        provider of Enterprise Profit Optimization(TM) (EPO) solutions -- the
        powerful combination of supply chain management and pricing and revenue
        optimization solutions -- for enterprises and eMarketplaces.  Under
        this alliance, Manugistics will embed Manhattan Associates' PkMS(TM)
        advanced warehouse management system within Manugistics fulfillment
        offerings.  The aim is to provide companies with an integrated end-to-
        end fulfillment management and execution system for both new and
        existing distribution channels.
     *  Entered into a partnership with Intentia, a leading global supplier of
        ERP solutions. This worldwide strategic alliance provides customers
        with one fully integrated suite of ERP and supply chain execution
        solutions and provides customers with shared domain expertise.
        Manhattan Associates also signed a global reseller agreement with
        Intentia, calling for them to resell Manhattan Associates solutions,
        which will result in added exposure into key European and Asia-Pacific
        marketplaces such as Germany, France Italy, Sweden and Japan.
     *  Achieved ISO 9001 Certification, making Manhattan Associates one of the
        first U.S. software development companies to achieve ISO 9001
        certification under the recently approved version 2000 of the standard.
        The Company implemented the process of becoming audit ready in an
        extremely short timeframe -- only 15 weeks.  Furthermore, the audit
        results were 78% higher than the industry average.
     *  Increased momentum for the new infolink(TM) product by signing six new
        customers, developing a prototype for infolink source and adding Nike
        Team Sports, Inc. and Polo Ralph Lauren to the infolink Advisory Board,
        which was formed to foster collaboration between today's leading
        retailers and suppliers and to ensure the infolink solution addresses
        the business issues facing each supply chain participant.
     *  Signed significant new customers including Belkin Components; Bob Evans
        Farms, Inc.; Healthcare Logistics Limited; Hibbett Sporting Goods,
        Inc.; Russ Berrie and Company, Inc.; Sundance Catalog Company and
        Yazaki North America, Inc.
     *  Continued to increase revenue from International Operations with 35% of
        license revenue and 16% of total revenue for the quarter ended March
        31, 2001, compared to 1% of license revenue and 10% of total revenue
        for the quarter ended March 31, 2000.
 
     Business Outlook for 2001
     The following statements are based on current expectations for the second
 quarter and fiscal 2001 regarding Manhattan Associates revenue and earnings
 per share.  These statements are forward-looking, and actual results may
 differ materially.  These statements do not reflect the potential impact of
 any mergers, acquisitions or other business combinations that may be completed
 after the date of this release.  Manhattan Associates will keep its earnings
 release publicly available on its Web site (www.manh.com ).  Prior to the
 start of Manhattan Associates' Quiet Period discussed below, the public can
 continue to rely on the expectations published in its earnings release as
 being its current expectations on matters covered, unless Manhattan Associates
 publishes a notice stating otherwise.  Towards the end of each fiscal quarter,
 Manhattan Associates will have a "Quiet Period" when Manhattan Associates and
 its representatives will not comment concerning previously published financial
 expectations, and we disclaim any obligation to update during the Quiet
 Period.  The public should not rely on previously published expectations
 during the Quiet Period.  Manhattan Associates' Quiet Period at the end of the
 second quarter is expected to run from June 15, 2001, until the earnings are
 released the third or fourth week of July 2001.
     For the fiscal year ending December 31, 2001, Manhattan Associates
 currently expects, in line with current analysts estimates, to achieve
 revenues in the range of $155,000,000 to $173,000,000 and earnings, excluding
 the effect of amortization expense for acquisition-related intangibles, in the
 range of $0.69 to $0.85 per fully diluted share.  For the quarter ending June
 30, 2001, Manhattan Associates currently expects to achieve revenues in the
 range of $37,000,000 to $41,000,000 and earnings, excluding the effect of
 amortization expense for acquisition-related intangibles, in the range of
 $0.16 to $0.20 per fully diluted share.  These expectations assume that
 current general market conditions will improve modestly over the balance of
 the year.
 
     About Manhattan Associates, Inc.
     Manhattan Associates, Inc. is a global leader in providing supply chain
 execution and collaborative commerce solutions.  These solutions leverage
 state-of-the-art technologies, innovative practices and the company's domain
 expertise to enhance performance, profitability and competitive advantage.
 Manhattan Associates has licensed more than 800 customers representing 1,100
 facilities worldwide, which include some of the world's leading manufacturers,
 suppliers and retailers.  For more information about Manhattan Associates,
 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, 2000.  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.
 
                    MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share amounts)
 
 
 
                                                         Three Months Ended
                                                             March 31,
                                                        2001           2000
                                                            (unaudited)
     Revenue:
      Software fees                                    $7,841         $5,036
      Services                                         23,497         17,544
      Hardware                                          4,737          5,763
       Total revenue                                   36,075         28,343
 
     Costs and Expenses:
      Cost of software fees                               485            277
      Cost of services                                  9,898          8,162
      Cost of hardware                                  3,608          4,701
      Research and development                          5,038          3,046
      Sales and marketing                               5,313          3,977
      General and administrative                        4,192          3,773
      Amortization of acquisition-related intangibles   1,310             94
       Total costs and expenses                        29,844         24,030
     Operating income                                   6,231          4,313
     Other income, net                                    550            403
     Income before income taxes                         6,781          4,716
     Income tax provision                               2,509          1,792
     Net income                                        $4,272         $2,924
 
     Basic net income per share                         $0.16          $0.12
     Diluted net income per share                       $0.14          $0.10
 
     Weighted average number of shares:
      Basic                                            26,544         24,366
      Diluted                                          30,674         28,946
 
     Reconciliation of Adjusted Net Income:
     Net income                                        $4,272         $2,924
     Amortization of acquisition-related intangibles    1,310             94
     Income tax effect                                   (485)           (36)
     Adjusted net income                                5,097          2,982
 
     Adjusted net income per diluted share              $0.17          $0.10
 
 
                    MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in thousands)
 
 
 
                                                     March 31,    December 31,
                                                        2001          2000
                                                    (unaudited)
                              ASSETS
 
     Current Assets:
      Cash and cash equivalents                       $68,741        $51,032
      Short-term investments                            3,014         16,635
      Accounts receivable, net                         30,024         28,177
      Prepaid expenses and other current assets         2,766          2,573
      Refundable income taxes                           2,450          5,795
      Deferred income taxes                             2,289          2,488
       Total current assets                           109,284        106,700
 
     Property and equipment, net                       11,432         10,833
     Intangible and other assets                       33,562         34,842
 
       Total assets                                  $154,278       $152,375
 
 
 
               LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
      Accounts payable and accrued liabilities        $13,994        $21,148
      Current portion of capital lease obligations        159            176
      Current portion of note payable                   1,750          1,853
      Deferred revenue                                 15,634         13,331
       Total current liabilities                       31,537         36,508
 
     Long-term portion of capital lease obligations       567            616
     Long-term portion of note payable                  5,250          5,250
 
     Total shareholders' equity                       116,924        110,001
 
       Total liabilities and shareholders' equity    $154,278       $152,375
 
 
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SOURCE Manhattan Associates
    ATLANTA, April 26 /PRNewswire/ --
 Manhattan Associates, Inc., (Nasdaq:   MANH), a global leader in providing
 supply chain execution and collaborative commerce solutions, today announced
 earnings for the first quarter ended March 31, 2001.
     Software fees for the first quarter ended March 31, 2001, were
 $7.8 million, an increase of 56% over software fees of $5.0 million for the
 first quarter of 2000.  Services revenue for the first quarter ended March 31,
 2001, was $23.5 million, an increase of 34% over services revenue of
 $17.5 million for the first quarter of 2000.  Total revenue for the first
 quarter ended March 31, 2001, was $36.1 million, an increase of 27% over
 revenue of $28.3 million for the first quarter ended March 31, 2000.
     Adjusted net income for the first quarter of 2001, which excludes the
 effect of amortization expense for acquisition-related intangibles, increased
 by 71% over the first quarter of 2000.  Adjusted net income for the quarters
 ended March 31, 2001, and March 31, 2000, was $5.1 million, or $0.17 per
 diluted share, and $3.0 million, or $0.10 per diluted share, respectively.
     "We are pleased with our business during the quarter. We significantly
 increased our core revenues and profits from one year ago, made excellent
 progress with new products and infrastructure and managed our costs
 appropriately," said Richard Haddrill, Manhattan Associates' CEO and
 president.  "Our industry-leading technology, which provides a strong Return
 on Investment (ROI) for customers, along with our solid financial position and
 loyal install base, served us well this quarter and should continue to do so
 going forward."
     Key achievements in the quarter for Manhattan Associates include:
     *  Formed an alliance with Manugistics Group, Inc., the leading global
        provider of Enterprise Profit Optimization(TM) (EPO) solutions -- the
        powerful combination of supply chain management and pricing and revenue
        optimization solutions -- for enterprises and eMarketplaces.  Under
        this alliance, Manugistics will embed Manhattan Associates' PkMS(TM)
        advanced warehouse management system within Manugistics fulfillment
        offerings.  The aim is to provide companies with an integrated end-to-
        end fulfillment management and execution system for both new and
        existing distribution channels.
     *  Entered into a partnership with Intentia, a leading global supplier of
        ERP solutions. This worldwide strategic alliance provides customers
        with one fully integrated suite of ERP and supply chain execution
        solutions and provides customers with shared domain expertise.
        Manhattan Associates also signed a global reseller agreement with
        Intentia, calling for them to resell Manhattan Associates solutions,
        which will result in added exposure into key European and Asia-Pacific
        marketplaces such as Germany, France Italy, Sweden and Japan.
     *  Achieved ISO 9001 Certification, making Manhattan Associates one of the
        first U.S. software development companies to achieve ISO 9001
        certification under the recently approved version 2000 of the standard.
        The Company implemented the process of becoming audit ready in an
        extremely short timeframe -- only 15 weeks.  Furthermore, the audit
        results were 78% higher than the industry average.
     *  Increased momentum for the new infolink(TM) product by signing six new
        customers, developing a prototype for infolink source and adding Nike
        Team Sports, Inc. and Polo Ralph Lauren to the infolink Advisory Board,
        which was formed to foster collaboration between today's leading
        retailers and suppliers and to ensure the infolink solution addresses
        the business issues facing each supply chain participant.
     *  Signed significant new customers including Belkin Components; Bob Evans
        Farms, Inc.; Healthcare Logistics Limited; Hibbett Sporting Goods,
        Inc.; Russ Berrie and Company, Inc.; Sundance Catalog Company and
        Yazaki North America, Inc.
     *  Continued to increase revenue from International Operations with 35% of
        license revenue and 16% of total revenue for the quarter ended March
        31, 2001, compared to 1% of license revenue and 10% of total revenue
        for the quarter ended March 31, 2000.
 
     Business Outlook for 2001
     The following statements are based on current expectations for the second
 quarter and fiscal 2001 regarding Manhattan Associates revenue and earnings
 per share.  These statements are forward-looking, and actual results may
 differ materially.  These statements do not reflect the potential impact of
 any mergers, acquisitions or other business combinations that may be completed
 after the date of this release.  Manhattan Associates will keep its earnings
 release publicly available on its Web site (www.manh.com ).  Prior to the
 start of Manhattan Associates' Quiet Period discussed below, the public can
 continue to rely on the expectations published in its earnings release as
 being its current expectations on matters covered, unless Manhattan Associates
 publishes a notice stating otherwise.  Towards the end of each fiscal quarter,
 Manhattan Associates will have a "Quiet Period" when Manhattan Associates and
 its representatives will not comment concerning previously published financial
 expectations, and we disclaim any obligation to update during the Quiet
 Period.  The public should not rely on previously published expectations
 during the Quiet Period.  Manhattan Associates' Quiet Period at the end of the
 second quarter is expected to run from June 15, 2001, until the earnings are
 released the third or fourth week of July 2001.
     For the fiscal year ending December 31, 2001, Manhattan Associates
 currently expects, in line with current analysts estimates, to achieve
 revenues in the range of $155,000,000 to $173,000,000 and earnings, excluding
 the effect of amortization expense for acquisition-related intangibles, in the
 range of $0.69 to $0.85 per fully diluted share.  For the quarter ending June
 30, 2001, Manhattan Associates currently expects to achieve revenues in the
 range of $37,000,000 to $41,000,000 and earnings, excluding the effect of
 amortization expense for acquisition-related intangibles, in the range of
 $0.16 to $0.20 per fully diluted share.  These expectations assume that
 current general market conditions will improve modestly over the balance of
 the year.
 
     About Manhattan Associates, Inc.
     Manhattan Associates, Inc. is a global leader in providing supply chain
 execution and collaborative commerce solutions.  These solutions leverage
 state-of-the-art technologies, innovative practices and the company's domain
 expertise to enhance performance, profitability and competitive advantage.
 Manhattan Associates has licensed more than 800 customers representing 1,100
 facilities worldwide, which include some of the world's leading manufacturers,
 suppliers and retailers.  For more information about Manhattan Associates,
 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, 2000.  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.
 
                    MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                      (in thousands, except per share amounts)
 
 
 
                                                         Three Months Ended
                                                             March 31,
                                                        2001           2000
                                                            (unaudited)
     Revenue:
      Software fees                                    $7,841         $5,036
      Services                                         23,497         17,544
      Hardware                                          4,737          5,763
       Total revenue                                   36,075         28,343
 
     Costs and Expenses:
      Cost of software fees                               485            277
      Cost of services                                  9,898          8,162
      Cost of hardware                                  3,608          4,701
      Research and development                          5,038          3,046
      Sales and marketing                               5,313          3,977
      General and administrative                        4,192          3,773
      Amortization of acquisition-related intangibles   1,310             94
       Total costs and expenses                        29,844         24,030
     Operating income                                   6,231          4,313
     Other income, net                                    550            403
     Income before income taxes                         6,781          4,716
     Income tax provision                               2,509          1,792
     Net income                                        $4,272         $2,924
 
     Basic net income per share                         $0.16          $0.12
     Diluted net income per share                       $0.14          $0.10
 
     Weighted average number of shares:
      Basic                                            26,544         24,366
      Diluted                                          30,674         28,946
 
     Reconciliation of Adjusted Net Income:
     Net income                                        $4,272         $2,924
     Amortization of acquisition-related intangibles    1,310             94
     Income tax effect                                   (485)           (36)
     Adjusted net income                                5,097          2,982
 
     Adjusted net income per diluted share              $0.17          $0.10
 
 
                    MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in thousands)
 
 
 
                                                     March 31,    December 31,
                                                        2001          2000
                                                    (unaudited)
                              ASSETS
 
     Current Assets:
      Cash and cash equivalents                       $68,741        $51,032
      Short-term investments                            3,014         16,635
      Accounts receivable, net                         30,024         28,177
      Prepaid expenses and other current assets         2,766          2,573
      Refundable income taxes                           2,450          5,795
      Deferred income taxes                             2,289          2,488
       Total current assets                           109,284        106,700
 
     Property and equipment, net                       11,432         10,833
     Intangible and other assets                       33,562         34,842
 
       Total assets                                  $154,278       $152,375
 
 
 
               LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
      Accounts payable and accrued liabilities        $13,994        $21,148
      Current portion of capital lease obligations        159            176
      Current portion of note payable                   1,750          1,853
      Deferred revenue                                 15,634         13,331
       Total current liabilities                       31,537         36,508
 
     Long-term portion of capital lease obligations       567            616
     Long-term portion of note payable                  5,250          5,250
 
     Total shareholders' equity                       116,924        110,001
 
       Total liabilities and shareholders' equity    $154,278       $152,375
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X48122968
 
 SOURCE  Manhattan Associates