Manugistics Group Inc. / MANU

About Manugistics Group Inc.

9715 Key West Ave. , Rockville, Md. 20850
www.manugistics.com | 301-255-5000 | Founded: 1969

Industry: Information Technology | Category: Public Companies

Unlike other companies that appear as unranked in The Post 200, Manugistics has not reported accounting problems or delayed its annual report to the Securities and Exchange Commission. Rather, the company has a fiscal year ending on Feb. 28 so it is not expected to report results for 2005 until mid-May.
Still, Manugistics had another rough year in 2005, marked by continued layoffs, the departure of an executive and loss of revenue. It found a way out of its troubles this year, announcing on April 24 that it had agreed to be purchased by rival JDA Software Group Inc.of Arizona for approximately $211 million in cash.
The company said it lost $4.6 million (6 cents a share) in its fiscal third quarter ended Nov. 30, compared with a loss of $13.3 million (16 cents) in the comparable period a year earlier. Revenue fell 11 percent, to $39.9 million. Manugistics executives blamed the revenue loss on increased competition and lower information technology spending by corporations.
In October, Manugistics announced the resignation of its chief financial officer and executive vice president, Raghavan Rajaji.
The company continued to cut expenses, reducing its local staff to 270 from 365 in 2004. It opened a product development center in Hyderabad, India, where the cost per employee is lower. Manugistics employs 181 at the center and expects to hire more.
Richard Williams, an analyst with ICAP, said Manugistics was "right-sized" under new management led by Joe Cowan, the chief executive since mid-2004.
Manugistics said it narrowed its business focus and that, when adjusted to exclude one-time factors such as the cost of winding down old businesses, its operating income for the quarter ended Nov. 30 was $200,000, compared with an adjusted operating loss of $3.3 million a year earlier.

CEO: Joe Cowan

2005 Financial Data