Supply chain software provider Logility Inc. today reported fiscal fourth quarter results that owed much to current economic conditions. Still, despite a revenue dip of 7% in the quarter, the company managed a double-digit increase in net earnings, and said it maintains healthy cash reserves.
For the three months ended April 30, 2009, Logility reported revenue of $11.1 million, 7% less than the $11.9 million it took in a year earlier. All of Logility’s business lines were off in the quarter, with license revenue down 7% to $3.9 million and “services and other” revenue down 14% to $1.6 million. Maintenance sales, the company’s biggest contributor, fell 4% to $5.7 million.
Net earnings, meanwhile, jumped 14% to $1.9 million for the quarter. For the year, earnings inched down 2% to $5.9 million on revenue of $41.6 million, a 7% decrease. Software license fees and services dropped 12% and 26% respectively year-over-year, while maintenance revenue eked out a 2% gain.
Logility’s overall financial condition remains strong, noted president and CEO Michael Edenfield during a conference call with analysts today. The company has $49.6 million in cash and investments, a $6.9 million increase compared to fiscal 2008. In addition, the company, which maintains two product brands, including Demand Solutions and Logility Voyager, signed agreements with 68 new customers in 21 countries during the fiscal year.
Notable new and existing customers placing orders with Logility in the fourth quarter included: Bernhardt Furniture Company, Constellation Brands, Formica, Johnson Diversey, Ridge Tools, Rockline Industries, Sony Electronics, Trek Bicycle, Tyndale, and Ventura Foods, the company said.
“In a slow economy, businesses need to overcome global supply chain challenges, reduce costs and improve service,” Edenfield said in a statement. “Our goal is to help customers take costs out of their supply chains by streamlining the sales and operations planning process, synchronizing supply with demand, improving forecast accuracy, automating transportation and warehouse operations, and providing greater visibility to enable better decision-making.”
Based on its current business model, Edenfield predicted, the company will remain stable in 2010, but he declined to provide any financial projections for the coming year.
In March, American Software, the purveyor of business applications which holds 88% of Logility, made an unsolicited cash tender offer to acquire the remainder of Logility’s shares. The tender offer of $7.02 per share has gone through multiple extensions for shareholder reviews, and was increased in May from the original per-share offer of $5.10. A week after American Software announced the revised offer, Logility’s Board of Directors recommended that shareholders accept the proposal.
As of yesterday, approximately 685,000 shares of Logility common stock have been tendered and not withdrawn in the tender offer, and 374,000 shares have been tendered conditionally upon exercise of Logility stock options, according to a press release. As of the filing of its fourth quarter results, Logility had just more than 12.8 million basic shares outstanding, approximately 1.5 million of which were not held by American Software.