<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
------------------------
Date of Report (Date of earliest event reported): September 24, 1998
Manugistics Group, Inc.
(Exact name of issuer as specified in its charter)
Delaware 0-22154 52-1469385
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification Number)
2115 East Jefferson Street
Rockville, Maryland 20852
(Address of principal executive offices and zip code)
(301) 984-5000
(Registrant's telephone number, including area code)
================================================================================
<PAGE>
Item 5. Other events.
In a press release dated September 24, 1998, Manugistics Group, Inc. announced a
restructuring of its business together with a reduction in its work force of
approximately six percent, as part of an overall expense containment program. A
copy of the press release appears as Exhibit 99 to this Report and is
incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
The following is filed as an Exhibit to this Report:
Exhibit Number Description
- -------------- -----------
99 Press Release dated September 24, 1998.
2
<PAGE>
SIGNATURE
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, thereunto duly authorized, in the City of Rockville, State of
Maryland, on the 25th day of September, 1998.
MANUGISTICS GROUP, INC.
By: /s/ Peter Q. Repetti
-------------------------------------
Peter Q. Repetti
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer
and Chief Accounting Officer)
3
<PAGE>
EXHIBIT INDEX
Exhibit Number Description
- -------------- -----------
99 Manugistics Group, Inc. Press Release dated September 24, 1998
<PAGE>
Contacts: Charlotte Penner
Director, Corporate Communications
301-998-7465
Nate Wallace
Manager, Investor Relations
301-984-5059
FOR IMMEDIATE RELEASE
MANUGISTICS ANNOUNCES RESTRUCTURING,
LEVERAGING STRENGTHS IN VERTICAL MARKETS
AND RAPID PRODUCT INNOVATION
Rockville, Md., Sept. 24, 1998 -- Manugistics Group, Inc. (Nasdaq:
MANU) today announced a restructuring of its business, including the creation of
the Company's first industry business unit focused on the high-technology and
electronics vertical market, enabling the company to build on its momentum in
this growing market. Other restructuring actions will allow the Company to
leverage strengths in additional key vertical markets; promote a continued focus
on rapid product innovation; allocate additional resources to the midrange
market and strategic alliances; and enhance execution.
"Over the past several quarters we have derived an increasing and
significant percentage of revenue from the high-technology and electronics
vertical market. To build on our success, today we have created our first
industry business unit focused on this key area," said William M. Gibson,
chairman and CEO of Manugistics. "The strengths and capabilities we acquired
with ProMIRA and TYECIN, combined with our Manugistics5 solution, have enabled
us to offer what clients in this space tell us is the most comprehensive supply
chain solution available today to address the complexities of their
environments. We believe this restructuring will enable us to increase our focus
and investment in high technology and electronics on a global basis and raise
the standard for supply chain solutions in this market."
<PAGE>
Kenneth S. Thompson, executive vice president, will lead the
high-technology and electronics business unit, which includes a cross-functional
team consisting of sales, business consulting, marketing, and global consulting
services. The other industry marketing organizations - Consumer Products,
Process and Healthcare, and Motor Vehicles and Parts - will report to vice
president Jeffrey L. Holmes and join Client Sales and Services led by Joseph E.
Broderick, executive vice president. By aligning sales, business consulting,
marketing and global consulting services, around key verticals, Manugistics will
further strengthen its ability to deliver industry-specific solutions and
services.
Chartered to continue the Company's commitment to rapid product
innovation, Mary Lou Fox, senior vice president, will assume overall
responsibility for engineering and product marketing. By tightly integrating
these organizations, the Company will enhance its focus on quickly developing
and delivering innovative solutions that satisfy the needs of clients today and
anticipate their needs for the future. In addition, vice presidents Frederick W.
Rook and Eric J. Hughey have been promoted to the Executive Committee. Rook is
responsible for leading the evolution of Manugistics' architecture and
technology vision, and Hughey directs the Company's rapid product development
efforts.
The strategic alliances group, under the direction of vice president
Steven J. Tonissen, will now report to Broderick, focusing resources in the
midrange market to expand on its initial success and fostering close
collaboration between alliance partners and the Client Sales and Services
organization.
Concurrent with the restructuring, the Company is trimming its
workforce by about 80 employees, or approximately 6 percent, as part of an
overall expense containment program begun in June. The Company expects to report
a non-recurring charge of approximately $1 million for the quarter ending
November 30, 1998 to cover costs related to the workforce reduction implemented
during the quarter.
<PAGE>
Headquartered in Rockville, Md., Manugistics Group, Inc. is the leading
provider of customer-centric supply chain optimization solutions and has the
largest global client base of any supply chain provider. The company's solutions
are used by more than 700 companies to improve the flow of product within and
among companies from raw materials or parts through manufacturing to delivery of
product to the end customer. Manugistics' solutions for customer-centric supply
chain optimization uniquely allow its clients to create and optimize their
supply chains around their customers and are quick to implement, adapt easily to
change, and deliver rapid results. Its clients include leading companies such as
Compaq, Harley-Davidson, Nike, Nestle, Wal-Mart, DuPont, and Nortel.
Forward Looking Statements
This press release contains forward looking statements that are subject
to risks and uncertainties and there are important factors that could cause
actual results to differ materially from those anticipated by such statements.
(Certain of such statements are identified by use of words such as "anticipate,"
"believe," "estimate," "intend," "expect," or "future.") Most importantly, there
are a number of 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
timing and results of the Company's longer-term initiatives, the response of
prospective customers to announced or commercially available products or
pricing, competitors' announcements and other marketing activities, acquisitions
or marketing relationships, the length of the Company's sales cycles, 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 future revenues, and if revenues were to be below expectations (as has
occurred in the first two quarters of fiscal 1999), the Company's operating
results would be and have been affected. The timing of releases of the Company's
software products can be affected by client needs, marketplace 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, please refer to the Company's Form 10-K
for the year ended February 28, 1998, and other reports and documents
subsequently 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.
# # #
Manugistics, the Manugistics logo, and working as one are registered trademarks
of Manugistics, Inc. All other products or company names mentioned are used for
identification purposes only, and may be trademarks of their respective owners.
