Logility’s Sales Rocket Skyward in Fiscal Q4
July 31, 2006 Dan Burger
When you turn in an annual report that shows software license fees increased 107 percent compared to one year earlier, there’s good reason for excitement. That was perhaps the most telling number among many positive trends as the supply chain collaborative software vendor Logility rang up record revenues and earnings in its fourth quarter and fiscal year 2006 reports.
According to Logility’s president and chief executive officer, J. Michael Edenfield, company records were broken in the categories of annual revenues, operating earnings, and net earnings. Edenfield also noted a record 88 new customers during the fiscal year. That, along with expanded deployments of supply chain software with existing customers, points to a combination of the right product mix and the right price. It also resulted in a 50 percent increase in total annual revenue.
“Logility provides supply chain solutions that give small, medium, large, and Fortune 1000 companies the visibility they need to overcome global supply chain challenges, reduce costs, and improve service,” Edenfield said in a statement provided to the press. “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.”
What Edenfield didn’t acknowledge in his comments was that the 12-month fiscal 2006 financial data included revenue and expenses from Demand Management, an apparel industry software company that Logility acquired September 30, 2004. Demand Management specializes in forecasting, demand planning, and point-of-sale analysis. The fiscal 2005 figures only show the Demand Management contributions for seven months compared to a full 12 months in fiscal 2006.
Comparing the fourth quarter (ended April 30) financial highlights of 2006 with 2005: Software license fees were $3.9 million, a 74 percent increase; maintenance revenues were $4.6 million, a 23 percent increase; total revenues were $10.1 million, a 34 percent increase; and operating earnings were $1.8 million, compared to an operating loss of $374,000.
Fiscal year 2006 financial highlights, compared with 2005, include: Total revenues of $37.3 million, a 50 percent increase; software license fees of $13.9 million, a 107 percent increase; services and other revenues of $5.8 million, an 11 percent increase; and maintenance revenues of $17.6 million, a 36 percent increase. Operating earnings were $6 million, compared to an operating loss of $876,000.
The company reports approximately 60 new deployments or significant upgrades of Logility Voyager Solutions during fiscal year 2006. Software license agreements were signed with both new and existing customers located in 20 countries.
The current version of Logility’s supply chain management suite is Voyager Solutions v.7.5. Its latest round of enhancements for distribution-intensive companies included the Web enablement of applications that provide increased visibility, demand, inventory, and replenishment planning; supply and global sourcing optimization; transportation planning and execution; and warehouse management.