ManH Reports 17 Percent Revenue Increase
October 29, 2013 Alex Woodie
Manhattan Associates brought in a total of nearly $108 million in revenue during the third quarter ended September 30, a 17 percent increase over the same quarter a year ago. The provider of supply chain and warehouse management software for IBM i and other platforms also recorded a 43 percent increase in net income, with more than $19 million profit.
“We’re pleased with our third quarter performance in a generally tepid macro environment,” Eddie Capel, Manhattan Associates’ president and CEO, said in a statement. “The financial results and operating metrics were solid and our competitive win rate remains strong.”
While total revenue increased substantially and set a new record for the developer of a preeminent IBM i-based WMS application, software license revenue actually declined from about $16.1 million to about $14.8 million. Revenue from services more than offset that decrease, as it went up from about $71.9 million during the third quarter of 2012 to $85 million this year.
Earnings increased substantially, from $.69 diluted EPS to $1.02. The publicly traded company was rewarded by traders who rushed into the stock, pushing its value up from about $95 before the earnings release last Tuesday to nearly $110, an all-time high for ManH. That is a substantial increase from early 2010, when ManH was trading around $25. Today the company’s market capitalization is more than $2 billion.
The company recorded several new software license deals during the quarter, which was marred by a slowdown in anticipation of the weeks-long federal government shutdown that began October 1. Among the new customers is Lululemon Athletica, which runs an IBM i-based merchandise management system (MMS). Manhattan Associates was unable to provide a breakdown of sales on IBM i versus those on other platforms.