Manugistics Posts Third Quarter Loss But Sees License Growth
Steve McVey - January 5, 2000

Event Summary

Manugistics Group recently reported revenues and earnings for its third fiscal quarter ended November 30, 1999. License revenue increased for the first time in five quarters, rising 35% over last quarter to $14.6 million. Manugistics attributes the increase to the signing of several new clients, including BASF, BMW AG, and Heilig-Meyers Company. Manugistics also sold new licenses to a number of unnamed clients in the electronics/high tech sector, territory of rival i2 Technologies. In spite of its surge in license revenues, the company reported a net loss for the quarter of $4.8 million, or $0.17 per share. CEO Greg Owens cites investment in new E-commerce product development as the primary reason for the loss. 'By accelerating our development of Internet solutions using innovative Web technologies, we are well positioned for opportunities in a substantially larger market. While these investments widened the loss in the quarter, we believe these strategic initiatives will better position us for the future in the business-to-business eCommerce market,' said Owens. Other events of note are new appointments to Manugistics's executive team, including a new CFO, and partnerships with two companies to build eBusiness trading partner exchanges...