Manhattan Associates Grows Smartly in 2006, Settles Customer Lawsuits
February 19, 2007 Timothy Prickett Morgan
Supply chain and warehouse management software supplier Manhattan Associates has reported its financial results for the fourth quarter of 2006 and the full year, and says that sales and profits were up in the double digits and giving the company some new sales records to beat in 2007. The company also said that it has settled two lawsuits, one brought by a customer in the United States and the other in Germany, that were implementing its warehouse management software and that were not happy with the installation, and so they sued.
In the fourth quarter, Manhattan Associates said that total sales rose by 14 percent to $75.9 million. Software license sales were up 18 percent to $19 million, while services sales rose by 14 percent to $49.9 million. Hardware and other sales rose by only 7 percent, to just under $7 million in the quarter. While revenue rose and Manhattan Associates kept costs under a lid, the $2.9 million that the company shelled out to settle those two lawsuits forced the company to report a net income of $4.8 million, down 16 percent.
For the full year, Manhattan Associates had software license sales of $66.5 million, up 16 percent, while services sales grew 17 percent to hit $194.5 million. Hardware and other sales during 2006 accounted for $27.8 million, up 20 percent. That puts overall sales for 2006 at $288.9 million, up 17 percent. Net income for the year was $19.3 million, up 77 percent even with the lawsuit settlements. The company exited the year with $18.5 million in cash and $90.5 in short-term investments.