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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (date of earliest event reported): May 22,1998
MANUGISTICS GROUP, INC.
(Exact name of registrant as specified in its charter)
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DELAWARE 0-22154 52-1469385
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification Number)
2115 EAST JEFFERSON STREET
ROCKVILLE, MARYLAND 20852
(Address of principal executive offices (Zip Code)
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(301) 984-5000
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On Friday, May 22,1998 the Company issued a press release which
expanded on information contained in a press release previously issued by the
Company on Thursday, May 21, 1998 regarding anticipated revenues and earnings
for its first fiscal quarter. A copy of the Friday, May 22, 1998 press release
is attached hereto as Exhibit 99.2 and is incorporated herein by reference.
ITEM 7. EXHIBITS
Exhibit Number
99.2 Press Release dated May 22, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Manugistics Group, Inc.
Date: May 22, 1998 By: /s/ Peter Q. Repetti
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Peter Q. Repetti
Senior Vice President and Chief Financial Officer
(Principal Financial Officer and Chief
Accounting Officer)
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EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
99.2 Press Release dated May 22, 1998
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Exhibit 99.2
Contacts: Peter Q. Repetti
Chief Financial Officer
301-984-5409
Nathaniel Wallace
Manager, Investor Relations
301-984-5059
MANUGISTICS EXPANDS COMMENTS
ON ANALYSTS' FIRST QUARTER ESTIMATES
Rockville, Md., May 22, 1998 - Manugistics, Inc. (Nasdaq: MANU) today
elaborated on its announcement that although revenues for the first quarter
ended May 31, 1998, are anticipated to be substantially higher than the
revenues for the same period of the prior year, Manugistics' management
believes revenues and earnings for the first quarter will not meet security
analysts' expectations, and will result in an operating loss for the first
quarter. Management indicates that it is still too early to accurately
estimate final results for the first quarter.
"Over the last six months, we focused on several key initiatives
targeted to ensure long-term market leadership and meet the growing demand we
see in the supply chain market. These initiatives were cross-functional in
nature and involved all of management," said William M. Gibson, chairman and
CEO of Manugistics. "It is my preliminary assessment that in combination,
these sizeable initiatives took more focus than we anticipated, and we did not
achieve the appropriate balance between our short-term execution and
longer-term goals. While this had a negative impact on our closing transactions
in our first quarter, we believe the results of these initiatives will enable
us to achieve our current fiscal year and longer-term growth targets."
"These growth initiatives included aggressive sales force expansion in
our fourth and first quarters, the development and launch of new positioning
and sales tools, and training associated with these, and due diligence and
negotiations associated with potential acquisitions. In addition, the recent
ProMIRA acquisition which significantly expanded our market opportunities, has
had the additional effect of expanding the scope of the pre-existing ProMIRA
opportunities at the price of additional client evaluation time, moving
closings beyond our first quarter. This experience, while difficult in the
short-term, has reaffirmed the wisdom of this acquisition," added Gibson.
"After having met or exceeded analyst expectations in eight consecutive
quarters, we are disappointed in our execution this quarter and will be taking
action to ensure improvement. Our pipeline remains strong and continues to
grow. The market for supply chain management remains strong and we feel
confident in our long-term growth."
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Used by over 630 companies around the world, Manugistics' synchronized
supply chain management(TM) solution assists managers in making the right
decisions involving product demand, supply, manufacturing scheduling, and
transportation. Through its advanced technology and an aggressive partnership
strategy, Manugistics provides a single view of the supply chain that connects
decision makers not only across an enterprise, but also among enterprises.
Headquartered in Rockville, Md., Manugistics has been providing innovative
supply chain management solutions to clients for more than a decade.
Forward Looking Statements
This press release contains forward looking statements that are
subject to risks and uncertainties. There are several important factors that
could affect the Company's performance. Demand for the Company's supply chain
management software products and the Company's quarterly operating results
could be affected by business conditions or the general economy in domestic and
international markets, the timely availability and acceptance of the Company's
products, technological change, the response of prospective customers to
announced or commercially available products or pricing or competitors'
acquisitions or marketing relationships, or the Company's ability to integrate
acquired operations and technologies rapidly and effectively. The Company's
expense levels are based largely on its expectations of further revenues, and
if revenues were to be below expectations, the Company's operating results
could be affected. The timing of releases of the Company's software products
can be affected by client needs, market place demands, technological advances,
and competitors' activities. The expansion of the Company's operations into
foreign markets, including the Asia/Pacific and South America regions, might be
affected by general economic conditions in foreign countries, difficulties in
staffing and managing international operations, changes in foreign currency
exchange rates, and political and economic instability. For further
information, refer to the Company's reports and other documents filed with the
Securities and Exchange Commission which are publicly available, copies of
which may also be obtained by contacting the Company's Investor Relations
department at 301-984-5409. The company assumes no obligation to update the
information contained in this press release.
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Manugistics, the Manugistics logo, and working as one are registered trademarks
and synchronized supply chain management is a trademark of Manugistics, Inc.
Additional information about Manugistics can be found at the company's site on
the World Wide Web, at http://www.manugistics.com.
