Supply chain planning software provider Logility, Inc. last week reported a continued decrease in quarterly revenue due mainly to a 32% drop in services fees in the period.
For its 2009 second quarter ended Oct. 31, 2008, Logility took in revenue of $10.5 million, down 6% from $11.1 million in the second quarter of fiscal 2008. Software license revenue was $3.3 million, a 4% year-over-year drop, while revenue from services fell 32% to $1.4 million. Maintenance revenue increased 2%, totaling $5.8 million.
On a conference call with investors Friday, Logility CFO Vince Klinges attributed the sharp drop in service revenue to the slower pace of implementation work that has resulted from declining license sales.
Meanwhile, GAAP net earnings in the quarter, at $1.6 million, were down only slightly compared with $1.7 million in the year-earlier period. The company signed 13 new customers in the quarter, officials said.