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FOR IMMEDIATE RELEASE
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INVESTOR CONTACTS: NATE WALLACE RAJ RAJAJI
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Manugistics Group, Inc. Manugistics Group, Inc.
Director, Investor Relations Chief Financial Officer
301-984-5059 301-984-5087
PRESS CONTACTS: DIDI BLACKWOOD EAMON BOBOWSKI
Manugistics Group, Inc. Ogilvy PR (For Manugistics)
[email protected] [email protected]
301-984-5330 202-736-1652
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MANUGISTICS POSTS RECORD REVENUE, STRONG NET
INCOME, DRIVEN BY LICENSE FEES INCREASE OF 146
PERCENT OVER SAME QUARTER LAST YEAR
ROCKVILLE, MD. -- DECEMBER 19, 2000 -- Manugistics Group, Inc. (Nasdaq: MANU), a
leading global provider of intelligent supply chain and eBusiness solutions for
enterprises and marketplaces, today reported the results of its record third
quarter fiscal 2001 that reflect the company's growing profitability and market
momentum.
For the three-month period ended November 30, 2000, license fees increased 146
percent to $35.8 million from $14.6 million in the same quarter of the prior
year. Total revenues increased 96 percent to $70.0 million - the largest amount
of total revenue for any fiscal quarter in the company's operating history -
from $35.8 million in the same quarter of the prior year. During the third
quarter, the company announced a two-for-one stock split of Manugistics common
stock, which began trading on a post-split basis on December 8, 2000.
For the three month period ended November 30, 2000, net income excluding
non-cash stock compensation benefit was $3.4 million - or $.12 per basic and
$.10 per diluted share on a pre-split basis - and $.06 per basic and $.05 per
diluted share on a two-for-one split-adjusted basis. All other per-share amounts
found in this announcement reflect the two-for-one stock split of Manugistics
common stock. This net income excluding non-cash stock compensation benefit of
$3.4 million compares to a net loss of $4.8 million, or $.09 per basic and
diluted share, in the same quarter of the prior year. Including the non-cash
stock compensation benefit associated with the re-priced stock options granted
to employees in January, 1999, the company reported net income of $9.4 million,
or $.16 per basic and $.14 per diluted share, for the three-month period ended
November 30, 2000.
"Our focused, vertical market approach, and the significant investments we've
made in our solutions, are two key factors propelling Manugistics success and
momentum in the market," said Greg Owens, Manugistics' chief executive officer
and chairman designate. "We are providing the industry-specific solutions our
clients need to give them a competitive advantage in the market, furthering our
goal of outpacing the market growth rate."
"Our eBusiness offerings continue to gain traction - accounting for nearly 40
percent of our license fees this quarter," Owens continued. Key marketplace wins
include Elemica, a premier consortium-backed eMarketplace for the chemical
industry, and Instill, which is using
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Manugistics solutions to power a new eBusiness offering for foodservice.
Manugistics also continues to demonstrate its dominance in
transportation-related exchanges, signing new deals including Agora Europe - a
new transportation marketplace - and VALEPONTOCOM (an investment of Companhia
Vale do Rio Doce (CVRD)), which is nearing completion of Multistrata, a South
American logistics portal.
The company experienced continued strong demand in the third quarter for its
electronics and high technology solutions. In addition to the previously
announced deal with Cisco Systems to help it develop an extended global
collaborative supply chain network, Manugistics signed significant software
license contracts in the quarter with Emerson, Juniper Networks, Lexmark, and
NTT DoCoMo, Inc.
The company also signed significant new software licensing contracts in the
apparel, footwear and textiles; chemicals; consumer packaged goods; motor
vehicles and parts; transportation; and retail industries; and in the government
sector - where the company signed the largest deal in its operating history, a
contract with Andersen Consulting in support of the Defense Logistics Agency's
Business Systems Modernization program.
Owens continued, "Upon completing the acquisition of Talus Solutions, Inc.,
Manugistics will assume the leadership position in pricing and revenue
optimization, substantially differentiating our solutions from those of our
competition. We are already seeing considerable interest for these solutions
from within our installed client base - as well as in numerous joint sales
cycles - which we expect will begin to translate into revenue early in our next
fiscal year. More importantly, the integration of Talus' products into
Manugistics' core offerings is on track to produce an entirely new category of
solutions designed to help enterprises and marketplaces increase revenue, lower
operating costs, enhance profitability and accelerate growth." The Talus
acquisition is expected to close on December 21, 2000, subject to the completion
of normal closing requirements.
Rich Bergmann, Manugistics' newly announced president, commented further,
"Manugistics' industry domain expertise, and best-of-breed solutions with their
proven ease and speed of implementation, are enabling us to win business across
key industry verticals around the world. Companies are increasingly recognizing
Manugistics' leadership position in supply chain optimization and B2B
infrastructure, and the return on investment that our solutions can quickly
deliver," said Bergmann. "Our market momentum and strong sales execution have
enabled us to grow our sales pipeline, increase quarterly sales visibility, and
win against the competition."
For the nine-month period ended November 30, 2000, Manugistics' license fees
increased 135 percent to $90.3 million from $38.4 million in the same nine-month
period of the prior year. Total revenue grew 64 percent to $178.7 million from
$108.8 million in the same nine-month period last year. Net income excluding
non-cash stock compensation expense was $3.2 million or $.06 per basic and $.05
per diluted share, for the nine-month period ended November 30, 2000. This
pro-forma net income compares to the net loss of $7.9 million, or $.14 per basic
and diluted share, in the nine-month period ended November 30, 1999. Including
the non-cash stock compensation expense associated with the re-priced stock
options granted to employees in January, 1999, the company reported a net loss
of $11.4 million, or $.20 per basic and diluted share, for the nine-month period
ended November 30, 2000.
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THIRD QUARTER HIGHLIGHTS:
STRONG SALES EXECUTION IN THE UNITED STATES: The company signed
significant software license agreements with U.S.-based corporations
such as Cisco Systems, Inc., The Astec Power Division of Emerson,
FreightWise, Inc., Harley-Davidson, Inc., Juniper Networks, Inc.,
Lexmark International, Inc., Levi Strauss & Co., Scholastic, Inc. and
the Vulcan Chemical Business Group of Vulcan Materials Company.
INCREASED MARKET PENETRATION GLOBALLY: In addition to key wins in the
United States, the company signed significant software license
agreements throughout the rest of the Americas, across Europe, and in
Asia and Australia, with companies such as Agora Europe S.A., Arnott's
Biscuits Limited, Cabot Corporation, Diamant Boart S.A., Elemica
Holdings Limited, Fabrica Nacional de Lija, S.A. de C.V., Geodis
Logistics France, Elektra S.A. de C.V., Mitsui Chemicals, Inc., NTT
DoCoMo, Inc., Parmalat Food, Inc., Unipart Group Ltd., and VALEPONTOCOM
S.A.
The company also executed an important strategic move into European
government markets, announcing this past week that it had been awarded a
Basic Order Agreement (BOA) by the NATO Consultation, Command and
Control Agency (NC3A). The agreement gives NATO's 19 member nations, 27
partner countries, and numerous governmental agencies - including NC3A -
direct access to Manugistics' solutions.
SUCCESSFUL CONVERTIBLE NOTE PLACEMENT: During the third quarter,
Manugistics successfully completed a private placement of $250 million
principal amount of 5% Convertible Subordinated Notes due 2007. The
company received total net proceeds of approximately $242 million from
the completed offering. As previously announced, the company expects to
use the net proceeds for working capital and general corporate purposes,
including capital expenditures and research and development. The company
may also use portions of the net proceeds to acquire businesses,
products, and technologies that complement or expand its business.
LEADERSHIP DEVELOPMENTS: As previously announced, company founder
William M. Gibson, chairman of the board of directors, plans to retire
at the end of the company's fiscal year on February 28, 2001. With the
recommendation of Gibson, the board named Greg Owens chairman designate,
to succeed Gibson upon his retirement. Owens continues to serve as chief
executive officer, relinquishing the title of president.
The company also made two key leadership appointments.
Richard F. Bergmann was named president of the company. Prior to
becoming president, Bergmann was Manugistics' executive vice president
of global sales and services, leading a team recognized for world-class
sales execution and delivery of Manugistics' supply chain and eBusiness
solutions.
The company named Gregory C. Cudahy executive vice-president of pricing
and revenue management. In this new position, Cudahy will be responsible
for the Talus pricing and revenue optimization solutions and integrating
them into Manugistics' core business. In addition, he will provide
leadership for Manugistics strategic consulting efforts on a
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global basis. Cudahy was formerly the partner responsible for the North
American practice of Andersen Consulting's Supply Chain Management (SCM)
Line of Business.
ENVISION2000 EUROPE AND JAPAN: Manugistics built on the success of its
enVISION2000 client conference held this past July in Orlando, Fla.,
holding two additional conferences in Europe (Cannes) and Japan (Tokyo).
Attendance at the three-day European event was more than double last
year's, with strong partner and client presence representing 19
countries - evidence of Manugistics' increased momentum across the
region. In Japan, attendance jumped 50 percent at the event over last
year. The event was sponsored by such leading Japanese companies as
Fujitsu, NEC, NTT Communications, and Nippon Steel.
CONFERENCE CALL INFORMATION
Manugistics has scheduled a simultaneous conference call and Web-cast for
Tuesday, December 19, 2000 at 5:00 PM Eastern Standard Time to discuss the
company's performance in its third quarter of fiscal 2001. Interested parties
may listen to the Web-cast by going to the Web-cast by going to
http://www.manugistics.com/ir/
A recording of the call will be available from 7:00 PM EST Tuesday, December
19th through 7:00 PM EST Thursday, December 21st. To listen to the recording,
callers within North America may call 1-800-633-8284. Callers outside North
America may call 858-812-6440. Callers to the recording will be required to
enter the access number for this call, which is 17162597.
ABOUT MANUGISTICS GROUP, INC.
Headquartered in Rockville, Md., Manugistics Group, Inc. is a leading global
provider of intelligent supply chain and eBusiness solutions for enterprises and
marketplaces. With nearly 1000 clients, Manugistics helps power intelligent
decisions for profitable growth in leading companies such as 3Com, Amazon.com,
BP, Brown & Williamson, Coca-Cola Bottling, Compaq, DuPont, eConnections,
FreightWise, General Electric, Harley-Davidson, Hormel, Nestle, Texas
Instruments and Unilever.
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 may be identified by use of words or phrases such as
"anticipate," "believe," "continue," "estimate," "expect," "foresee," "future,"
"intend," "optimistic," "positioned," "well-positioned" or "will." A discussion
of these factors is set forth in the company's Annual Report on Form 10-K for
the year ended February 29, 2000, and the Company's subsequent Quarterly Reports
on Form 10-Q (in each case under the caption "Factors That May Affect Future
Results," within the section titled "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and elsewhere in the reports) and
other reports and documents filed with the Securities and Exchange Commission
which are publicly available. Copies of these documents may also be obtained by
contacting the company's
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Investor Relations department at 301-984-5409. The company assumes no obligation
to update the information contained in this press release.
###
Manugistics is a registered trademark, and the Manugistics logo, the phrase
"Leveraged Intelligence," and NetWORKS are trademarks, of Manugistics Group,
Inc. All other product or company names mentioned are used for identification
purposes only, and may be trademarks of their respective owners. Additional
information about Manugistics can be found at the company's site on the World
Wide Web, at http://www.manugistics.com
MANUGISTICS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
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November 30, February 29,
2000 2000
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(Unaudited)
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 25,779 $ 34,051
Marketable securities 254,995 17,496
Accounts receivable - net 72,094 38,705
Other current assets 6,314 9,252
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Total current assets 359,182 99,504
PROPERTY AND EQUIPMENT - NET 14,529 14,157
NONCURRENT ASSETS:
Software development costs - net 16,046 16,514
Intangibles and other assets - net 18,210 9,477
Deferred tax asset 26,165 12,776
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TOTAL $ 434,132 $ 152,428
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 5,613 $ 5,792
Accrued liabilities 31,663 19,024
Restructuring Accruals 1,674 5,130
Line of Credit - 6,000
Deferred revenue 32,592 26,727
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Total current liabilities 71,542 62,673
LONG-TERM LIABILITIES 250,116 283
LONG-TERM RESTRUCTURING ACCRUAL 2,254 2,754
STOCKHOLDERS' EQUITY 110,220 86,718
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TOTAL $ 434,132 $ 152,428
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MANUGISTICS GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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Three Months Ended Nine Months Ended
November 30, November 30,
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2000 1999 2000 1999
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REVENUES:
License fees $ 35,807 $ 14,571 $ 90,290 $ 38,423
Services 20,557 9,631 49,096 36,794
Solution support 13,632 11,592 39,279 33,565
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Total revenues 69,996 35,794 178,665 108,782
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OPERATING EXPENSES:
Cost of license fees 4,772 3,686 14,365 9,596
Cost of services 14,344 10,789 39,636 32,703
Sales and marketing 30,710 15,074 78,844 43,212
Product development 8,964 7,516 25,179 21,977
General and administrative 5,972 3,896 16,282 11,736
Restructuring costs - (17) - (699)
Non-cash stock compensation (benefit)
expense (6,073) - 14,638 -
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Total operating expenses 58,689 40,944 188,944 118,525
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INCOME (LOSS) FROM OPERATIONS 11,307 (5,150) (10,279) (9,743)
OTHER INCOME-NET 306 360 1,021 1,235
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NET INCOME (LOSS) BEFORE INCOME TAXES 11,613 (4,790) (9,258) (8,508)
PROVISION (BENEFIT) FOR INCOME TAXES 2,190 15 2,154 (657)
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NET INCOME (LOSS) $ 9,423 $(4,805) $ (11,412) $(7,851)
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NET INCOME (LOSS) PER SHARE -BASIC $ 0.16 $ (0.09) $ (0.20) $ (0.14)
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NET INCOME (LOSS) PER SHARE -DILUTED $ 0.14 $ (0.09) $ (0.20) $ (0.14)
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SHARES USED IN SHARE COMPUTATION
BASIC 57,969 55,180 57,083 54,594
DILUTED 66,224 55,180 57,083 54,594
PER SHARE EXCLUDING NON-CASH STOCK
COMPENSATION (BENEFIT) EXPENSE
NET INCOME ( LOSS) PER SHARE-BASIC $ 0.06 (0.09) 0.06 (0.14)
========== ========== ========== ==========
NET INCOME (LOSS) PER SHARE-DILUTED $ 0.05 $ (0.09) $ 0.05 $ (0.14)
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SHARES USED IN SHARE COMPUTATION
BASIC 57,969 55,180 57,083 54,594
DILUTED 66,224 55,180 64,471 54,594
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