Manhattan Associates joined the herd of companies thrown off their stride by the credit crisis and the economic meltdown in the back half of 2008. The supply chain optimization software provider posted earnings and revenue declines in its fourth quarter, though it finished out the year with flat revenue on the strength of its first-half performance.
For the fourth quarter, ended Dec. 31, 2008, the company recorded an 11% drop in revenue to $75.7 million, from $85.0 million a year earlier. Currency exchanges negatively affected total revenue to the tune of $2.2 million, or 3%. Net income, which included a restructuring charge of $4.7 million, fell 76% to $2.0 million in the quarter, from $8.5 million the year before. The results were in line with adjusted guidance for the quarter, the company said.
“There’s no question that our business is feeling the impact of this unprecedented downturn in the economy,” Manhattan Associates CFO Dennis Story told analysts on a conference call Tuesday. “A number of licenses got pushed out in the fourth quarter.”
License revenue in the quarter declined 26% year over year to $13.8 million. The company closed four deals worth more than $1 million each in the quarter. Three of the four were orders from existing customers for warehouse management applications, and the fourth was for transportation lifecycle management software.