At a time when most enterprise software providers seem to be swooning, supply chain specialist Logility, Inc. reported on Thursday that revenue in its most recent quarter rose 7% on a big jump in license sales.
For the third fiscal quarter, ended Jan. 31, 2009, Logility reported revenue of $10.6 million, a 7% improvement over the $9.9 million it brought in a year earlier. The gain was led by a 57% surge in license sales, which totaled $3.7 million in the quarter. The impressive spike in product sales more than canceled out a 34% drop in services and other revenue, which slumped to $1.3 million, and maintenance revenue that remained flat, at $5.7 million.
Logility’s sizable jump in license revenue was helped along by increases in license fees, a change that drove the company’s license margins to 73%; in the fiscal 2008 third quarter, license margins stood at just 42%.
Logility’s GAAP net earnings in the quarter were $1.76 million, more than doubling the $835,000 reported in the year-prior period.
On a conference call with analysts this morning, CEO Mike Edenfield said he was pleased with the company’s third-quarter performance. “We continue to be encouraged by the number of new customers licensing our products,” he said. “New customers are a source of future maintenance and implementation service revenue, as well as being great prospects for additional product sales.”
Logility spread its product sales around in the period, adding or renewing customers in Australia, Canada, Costa Rica, Italy, the Netherlands, the United Kingdom, and other locales in addition to its home market in the United States, which still dominates its sales.
Officials cited contract wins with Arch Chemicals, Astronics AES, Belkin International, Johnson Controls, Mitsubishi Motor Products, and Techtronic Industries, among others.
For the first nine months of the fiscal year, Logility’s revenue was down 8% year over year to $30.5 million, with the maintenance line the sole gainer, up 4%. While Edenfield conceded that some prospective sales had slipped due to the economy, he characterized the fourth-quarter pipeline as good.