ATLANTA, July 21, 2009 (GLOBE NEWSWIRE) -- Leading supply chain optimization provider Manhattan Associates, Inc. (Nasdaq:MANH) today reported second quarter 2009 non-GAAP adjusted diluted earnings per share of $0.14 compared to $0.42 in the 2008 second quarter and a GAAP loss per share of $0.02 compared to earnings of $0.37 per share in the prior year second quarter. The Company posted total second quarter revenue of $58.4 million, which was down 35% from overall revenue posted in the second quarter of 2008, driving the earnings per share decline.
Manhattan Associates President and CEO Pete Sinisgalli commented, "Similar to the first quarter, businesses continue to be hesitant to release capital. This is particularly true for larger capital expenditures. As a result, we had no million-dollar contracts in either the first quarter or second quarter of the year. Our competitive win rate continues to be favorable, and I believe when businesses in the markets we serve gain confidence in the economy, we will see strong improvement in our financial results."
SECOND QUARTER 2009 FINANCIAL SUMMARY:
* Adjusted diluted earnings per share, a non-GAAP measure, were $0.14 in the second quarter of 2009, compared to $0.42 in the second quarter of 2008. * The Company reported a GAAP loss per share of $0.02 in the second quarter of 2009, compared to $0.37 GAAP diluted earnings per share in the second quarter of 2008. The second quarter of 2009 includes a pre-tax restructuring charge of $3.8 million, or $0.12 per share, associated with the workforce reduction initiative executed in the quarter. * Consolidated revenue for the second quarter of 2009 was $58.4 million, compared to $90.5 million in the second quarter of 2008. License revenue was $4.1 million in the second quarter of 2009, compared to $19.4 million in the second quarter of 2008. * Adjusted operating income, a non-GAAP measure, was $5.2 million in the second quarter of 2009, compared to $15.5 million in the second quarter of 2008. * The Company reported a GAAP operating loss, including a pre-tax restructuring charge of $3.8 million, for the second quarter of 2009 of $0.4 million compared to GAAP operating income of $13.3 million in the second quarter of 2008. * Cash flow from operations was $10.8 million in the second quarter of 2009, compared to $21.0 million in the second quarter of 2008. Days Sales Outstanding were 61 days at June 30, 2009, compared to 78 days at June 30, 2008. * Cash and investments on-hand at June 30, 2009 was $90.8 million compared to $89.2 million at March 31, 2009. * The Company repurchased 577,606 common shares totaling $10.0 million at an average share price of $17.34 in the second quarter of 2009, self-funded from Q2 cash flow from operations. The Company has $15.0 million in remaining share repurchase authority.
SIX MONTH 2009 FINANCIAL SUMMARY:
* Adjusted diluted earnings per share, a non-GAAP measure, were $0.22 for the six months ended June 30, 2009, compared to $0.77 for the six months ended June 30, 2008. * GAAP loss per share for the six months ended June 30, 2008 was $0.01, compared to $0.66 earnings per share for the six months ended June 30, 2008. The first half of 2009 results include pre-tax restructuring charges of $3.9 million, or $0.12 per share. * Consolidated revenue for the six months ended June 30, 2009 was $119.2 million compared to $178.8 million for the six months ended June 30, 2008. License revenue was $9.0 million for the six months ended June 30, 2009, compared to $37.7 million in the six months ended June 30, 2008. * Adjusted operating income, a non-GAAP measure, was $8.0 million for the six months ended June 30, 2009, compared to $26.5 million for the six months ended June 30, 2008. * GAAP operating income, including a pre-tax restructuring charge of $3.9 million, was $0.2 million for the six months ended June 30, 2009, compared to $22.4 million for the six months ended June 30, 2008. * The Company repurchased approximately 1.3 million common shares at an average share price of $15.93, for a total investment of $20.0 million.
SALES ACHIEVEMENTS:
* Completing software license wins with new customers such as Better Life Commercial Chain Share Co., Chanel (Australia), Dongguan Jiarong Supermarket Co., Kem Krest Corporation, Kuehne & Nagel, Mulberry Group Plc, Shandong JiaJiaYue Group Co., WWRD United Kingdom. * Expanding partnerships with existing customers such as ACCO Brands Benelux, Brinkmann Corporation, CEVA Logistics Singapore, Complete Entertainment Services LTD, Excell Home Fashions, Inc., LeSaint Logistics, Movianto UK , Orchard Brands, Inc., O'Reilly Automotive, Inc., Panalpina Management AG, Republic National Distributing Company, River Island Clothing Company, RGH Enterprises, Inc., Teva Pharmaceutical USA, The Bear Factory Limited, The Beistle Company, APL Co. and Weldom.
2009 GUIDANCE
Due to economic uncertainty and limited visibility, Manhattan Associates has decided to suspend its earnings guidance for the remainder of 2009. Our previously published guidance for fiscal year 2009 should not be relied upon as reflecting management's current expectations for full year results.
"Given our challenges forecasting license revenue in the first half of 2009 and the ongoing turbulence in the global economy, we have suspended our earnings guidance for the remainder of the year. We will revisit our guidance policy when markets stabilize," Mr. Sinisgalli said.
CONFERENCE CALL
The Company's conference call regarding its second quarter financial results will be held at 4:30 p.m. Eastern Time on Tuesday, July 21, 2009. Investors are invited to listen to a live webcast of the conference call through the investor relations section of Manhattan Associates' website. To listen to the live Web cast, please go to the Web site at least 15 minutes before the call to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay can be accessed shortly after the call by dialing +1.800.642.1687 in the U.S. and Canada, or +1.706.645.9291 outside the U.S., and entering the conference identification number 15403556, or via the Web at www.manh.com. The phone replay will be available for two weeks after the call, and the Internet broadcast will be available until Manhattan Associates' third quarter 2009 earnings release.
GAAP VERSUS NON-GAAP PRESENTATION
The Company provides adjusted operating income, adjusted net income and adjusted earnings per share in this press release as additional information regarding the Company's operating results. These measures are not in accordance with -- or an alternative for -- GAAP, and may be different from non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share measures used by other companies. The Company believes that the presentation of these non-GAAP financial measures facilitates investors' understanding of its historical operating trends, because it provides important supplemental measurement information in evaluating the operating results of its business, as distinct from results that include items that are not indicative of ongoing operating results. The Company consequently believes that the presentation of these non-GAAP financial measures provides investors with useful insight into its profitability. This release should be read in conjunction with its Form 8-K earnings release filing for the quarter ended June 30, 2009.
The non-GAAP adjusted operating income, adjusted net income and adjusted earnings per share exclude the impact of acquisition-related costs and the amortization thereof, the recapture of previously recognized sales tax expense, stock option expense under SFAS 123(R), asset impairment charges, and restructuring charges, all net of income tax effects, and unusual tax adjustments. A reconciliation of the Company's GAAP financial measures to non-GAAP adjustments is included in the supplemental information attached to this release.
The Company has also presented certain information excluding the effect between periods of changes in exchange rates between the U.S. dollar and the functional currencies of its foreign subsidiaries. Certain information regarding the effect of currency exchange rate fluctuation on results is included in note 5 to the supplemental information attached to this release.
ABOUT MANHATTAN ASSOCIATES, INC.
Manhattan Associates continues to deliver on its 19-year heritage of providing global supply chain excellence to more than 1,200 customers worldwide that consider supply chain optimization core to their strategic market leadership. The company's supply chain innovations include: Manhattan SCOPE(r), a portfolio of software solutions and technology that leverages a Supply Chain Process Platform to help organizations optimize their supply chains from planning through execution; Manhattan ILS, a portfolio of distribution management and transportation management solutions built on Microsoft(r) .NET technology; and Manhattan Carrier, a suite of supply chain solutions specifically addressing the needs of the motor carrier industry. For more information, please visit www.manh.com.
This press release contains "forward-looking statements" relating to Manhattan Associates, Inc. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: the global economic downturn; disruptions in credit markets; delays in product development; competitive pressures; software errors; and additional risk factors set forth in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2008. Manhattan Associates undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results.
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
(unaudited) (unaudited)
Revenue:
Software license $ 4,126 $ 19,365 $ 9,048 $ 37,677
Services 49,422 62,289 100,265 122,126
Hardware and other 4,861 8,836 9,921 19,011
-------- -------- -------- --------
Total revenue 58,409 90,490 119,234 178,814
-------- -------- -------- --------
Costs and Expenses:
Cost of license 1,035 1,641 2,459 2,785
Cost of services 21,319 29,856 44,476 61,136
Cost of hardware and other 4,177 7,317 8,298 15,583
Research and development 9,188 11,711 19,415 24,365
Sales and marketing 9,026 14,676 19,105 28,248
General and administrative 7,251 8,867 15,213 17,938
Depreciation and amortization 3,010 3,158 6,175 6,406
Restructuring charge 3,829 - 3,892 --
-------- -------- -------- --------
Total costs and expenses 58,835 77,226 119,033 156,461
-------- -------- -------- --------
Operating (loss) income (426) 13,264 201 22,353
Other (expense) income, net (404) 650 (637) 2,951
-------- -------- -------- --------
(Loss) income before income
taxes (830) 13,914 (436) 25,304
Income tax (benefit) provision (274) 4,835 (142) 8,793
-------- -------- -------- --------
Net (loss) income $ (556) $ 9,079 $ (294) $ 16,511
======== ======== ======== ========
Basic (loss) earnings per
share $ (0.02) $ 0.37 $ (0.01) $ 0.68
Diluted (loss) earnings per
share $ (0.02) $ 0.37 $ (0.01) $ 0.66
Weighted average number of
shares:
Basic 22,391 24,259 22,687 24,341
Diluted 22,391 24,826 22,687 24,833
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
RECONCILIATION OF SELECTED GAAP TO NON-GAAP MEASURES
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Operating (loss) income $ (426) $ 13,264 $ 201 $ 22,353
Stock option expense (a) 1,010 1,372 2,410 2,676
Purchase amortization (b) 741 844 1,482 1,725
Sales tax recoveries (c) -- -- -- (234)
Restructuring charge (d) 3,829 -- 3,892 --
-------- -------- -------- --------
Adjusted operating income
(Non-GAAP) $ 5,154 $ 15,480 $ 7,985 $ 26,520
-------- -------- -------- --------
Income tax (benefit) provision $ (274) $ 4,835 $ (142) $ 8,793
Stock option expense (a) 314 477 783 930
Purchase amortization (b) 234 293 482 599
Sales tax recoveries (c) -- -- -- (81)
Restructuring charge (d) 1,244 -- 1,265 --
-------- -------- -------- --------
Adjusted income tax provision
(Non-GAAP) $ 1,518 $ 5,605 $ 2,388 $ 10,241
-------- -------- -------- --------
Net (loss) income $ (556) $ 9,079 $ (294) $ 16,511
Stock option expense (a) 696 895 1,627 1,746
Purchase amortization (b) 507 551 1,000 1,126
Sales tax recoveries (c) -- -- -- (153)
Restructuring charge (d) 2,585 -- 2,627 --
-------- -------- -------- --------
Adjusted net income (Non-GAAP) $ 3,232 $ 10,525 $ 4,960 $ 19,230
-------- -------- -------- --------
Diluted EPS $ (0.02) $ 0.37 $ (0.01) $ 0.66
Stock option expense (a) 0.03 0.04 0.07 0.07
Purchase amortization (b) 0.02 0.02 0.04 0.05
Sales tax recoveries (c) -- -- -- (0.01)
Restructuring charge (d) 0.12 -- 0.12 --
-------- -------- -------- --------
Adjusted diluted EPS
(Non-GAAP) $ 0.14 $ 0.42 $ 0.22 $ 0.77
-------- -------- -------- --------
Fully diluted shares 22,391 24,826 22,687 24,833
Effect of common stock
equivalents (e) 53 -- 44 --
-------- -------- -------- --------
Adjusted fully diluted shares
(Non-GAAP) 22,444 24,826 22,731 24,833
-------- -------- -------- --------
(a) SFAS 123(R) requires us to expense stock options issued to
employees. Because stock option expense is determined in
significant part by the trading price of our common stock and the
volatility thereof, over which we have no direct control, the
impact of such expense is not subject to effective management by
us. Thus, we have excluded the impact of this expense from
adjusted non-GAAP results. The stock option expense is included
in the following GAAP operating expense lines for the three and
six months ended June 30, 2009 and 2008:
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Cost of services $ 188 $ 117 $ 321 $ 239
Research and development 258 196 471 392
Sales and marketing (42) 426 405 846
General and administrative 606 633 1,213 1,199
-------- -------- -------- --------
Total stock option expense $ 1,010 $ 1,372 $ 2,410 $ 2,676
======== ======== ======== ========
(b) Adjustments represent purchase amortization from prior
acquisitions. Such amortization is commonly excluded from GAAP net
income by companies in our industry and we therefore exclude these
amortization costs to provide more relevant and meaningful
comparisons of our operating results to that of our competitors.
(c) Adjustment represents recoveries of previously expensed sales tax
resulting primarily from the expiration of the sales tax audit
statutes in certain states. Because we have recognized the full
potential amount of the sales tax expense in prior periods, any
recovery of that expense resulting from the expiration of the
statutes or the collection of tax from our customers would
overstate the current period net income derived from our core
operations as the recovery is not a result of any event occurring
within our control during the current period. Thus, we have
excluded these recoveries from adjusted non-GAAP results.
(d) During the quarter ended June 30, 2009, we committed to and
initiated plans to reduce our workforce by approximately 140
positions to realign our capacity based on the revised revenue
outlook for 2009. As a result of this initiative, we recorded a
restructuring charge of approximately $3.8 million in the second
quarter of 2009. The restructuring charge primarily consists of
employee severance and outplacement services. We also recorded
additional employee severance expense of $63,000 in the first
quarter of 2009 related to the restructuring action taken in the
fourth quarter of 2008. We do not believe that the restructuring
charge is a common cost that resulted from normal operating
activities. Consequently, we have excluded this charge from
adjusted non-GAAP results.
(e) All common stock equivalents were anti-diluted for GAAP for the
three and six months ended June 30, 2009 because we recorded a net
loss. Adjustment represents common equivalent shares for these
periods using the treasury stock method to properly present
diluted shares for our adjusted net income.
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, December 31,
2009 2008
------------ ------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 87,968 $ 85,739
Accounts receivable, net of allowance
of $5,220 and $5,566 in 2009 and 2008,
respectively 39,405 63,896
Deferred income taxes 6,734 6,667
Income tax receivable 843 --
Prepaid expenses and other current
assets 4,800 6,979
------------ ------------
Total current assets 139,750 163,281
Property and equipment, net 18,525 21,721
Long-term investments 2,801 2,967
Acquisition-related intangible assets,
net 4,955 6,438
Goodwill, net 62,276 62,276
Deferred income taxes 10,526 10,932
Other assets 2,519 2,606
------------ ------------
Total assets $ 241,352 $ 270,221
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,394 $ 8,480
Accrued compensation and benefits 11,115 17,429
Accrued and other liabilities 15,334 16,188
Deferred revenue 32,626 32,984
Income taxes payable -- 2,365
------------ ------------
Total current liabilities 65,469 77,446
Other non-current liabilities 12,935 12,936
Shareholders' equity:
Preferred stock, no par value;
20,000,000 shares authorized, no shares
issued or outstanding in 2009 or 2008 -- --
Common stock, $.01 par value;
100,000,000 shares authorized;
22,500,285 and 23,581,109 shares issued
and outstanding at June 30, 2009 and
December 31, 2008, respectively 225 234
Additional paid-in capital -- --
Retained earnings 165,530 182,882
Accumulated other comprehensive loss (2,807) (3,277)
------------ ------------
Total shareholders' equity 162,948 179,839
------------ ------------
Total liabilities and shareholders'
equity $ 241,352 $ 270,221
============ ============
MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended
June 30,
---------------------------
2009 2008
------------ ------------
(unaudited)
Operating activities:
Net (loss) income $ (294) $ 16,511
Adjustments to reconcile net (loss)
income to net cash provided by
operating activities:
Depreciation and amortization 6,175 6,406
Stock compensation 4,018 4,337
Loss on disposal of equipment 12 32
Tax (deficiency) benefit of stock
awards exercised/vested (1,088) 119
Excess tax benefits from stock based
compensation (9) (76)
Deferred income taxes 386 --
Unrealized foreign currency
loss (gain) 723 (1,292)
Changes in operating assets and
liabilities:
Accounts receivable, net 25,082 (3,840)
Other assets 2,342 1,126
Accounts payable, accrued and other
liabilities (9,872) (193)
Income taxes (2,944) 1,791
Deferred revenue (986) 2,196
------------ ------------
Net cash provided by operating
activities 23,545 27,117
------------ ------------
Investing activities:
Purchase of property and equipment (1,360) (5,560)
Net maturities of investments 80 21,533
------------ ------------
Net cash (used in) provided by
investing activities (1,280) 15,973
------------ ------------
Financing activities:
Purchase of common stock (20,540) (12,351)
Excess tax benefits from stock based
compensation 9 76
Proceeds from issuance of common stock
from options exercised 544 2,187
------------ ------------
Net cash used in financing activities (19,987) (10,088)
------------ ------------
Foreign currency impact on cash (49) (749)
------------ ------------
Net change in cash and cash equivalents 2,229 32,253
Cash and cash equivalents at beginning
of period 85,739 44,675
------------ ------------
Cash and cash equivalents at end of
period $ 87,968 $ 76,928
============ ============
MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION
1. GAAP and Adjusted Earnings per share by quarter are as follows:
2008
----------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
GAAP Diluted EPS $ 0.30 $ 0.37 $ 0.18 $ 0.08
Adjustments to GAAP:
Stock option expense 0.03 0.04 0.04 0.04
Purchase amortization 0.02 0.02 0.02 0.02
Sales tax recoveries (0.01) -- -- --
Asset impairment charge -- -- 0.22 --
Non-recurring tax adjustments -- -- (0.11) (0.02)
Restructuring charge -- -- -- 0.13
------- ------- ------- -------
Adjusted Diluted EPS $ 0.35 $ 0.42 $ 0.34 $ 0.26
======= ======= ======= =======
2009 2008 2009
---------------- ------- -------
1st Qtr 2nd Qtr YTD YTD
------- ------- ------- -------
GAAP Diluted EPS $ 0.01 $ (0.02) $ 0.66 $ (0.01)
Adjustments to GAAP:
Stock option expense 0.04 0.03 0.07 0.07
Purchase amortization 0.02 0.02 0.05 0.04
Sales tax recoveries -- -- (0.01) --
Asset impairment charge -- -- -- --
Non-recurring tax adjustments -- -- -- --
Restructuring charge -- 0.12 -- 0.12
------- ------- ------- -------
Adjusted Diluted EPS $ 0.07 $ 0.14 $ 0.42 $ 0.22
======= ======= ======= =======
2. Revenues and operating income (loss) by reportable segment are as
follows (in thousands):
2008
----------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
Revenue:
Americas $72,129 $73,551 $67,957 $63,609
EMEA 12,028 11,961 10,083 8,726
APAC 4,167 4,978 4,696 3,316
------- ------- ------- -------
$88,324 $90,490 $82,736 $75,651
======= ======= ======= =======
GAAP Operating Income (Loss):
Americas $ 7,065 $10,643 $ 1,618 $ (477)
EMEA 2,055 2,215 1,292 1,078
APAC (31) 406 332 (233)
------- ------- ------- -------
$ 9,089 $13,264 $ 3,242 $ 368
======= ======= ======= =======
Adjustments (pre-tax):
Americas:
Stock option expense $ 1,304 $ 1,372 $ 1,399 $ 1,383
Purchase amortization 881 844 769 759
Sales tax recoveries (234) -- -- --
Asset impairment charge -- -- 5,205 --
Restructuring charge -- -- -- 4,369
------- ------- ------- -------
$ 1,951 $ 2,216 $ 7,373 $ 6,511
------- ------- ------- -------
EMEA:
Restructuring charge -- -- -- 204
------- ------- ------- -------
$ -- $ -- $ -- $ 204
------- ------- ------- -------
APAC:
Restructuring charge -- -- -- 94
------- ------- ------- -------
$ -- $ -- $ -- $ 94
------- ------- ------- -------
------- ------- ------- -------
Total Adjustments $ 1,951 $ 2,216 $ 7,373 $ 6,809
======= ======= ======= =======
Adjusted non-GAAP Operating Income
(Loss):
Americas $9,016 $12,859 $ 8,991 $ 6,034
EMEA 2,055 2,215 1,292 1,282
APAC (31) 406 332 (139)
------- ------- ------- -------
$11,040 $15,480 $10,615 $ 7,177
======= ======= ======= =======
2009 2008 2009
----------------- -------- --------
1st Qtr 2nd Qtr YTD YTD
-------- -------- -------- --------
Revenue:
Americas $ 50,827 $ 47,372 $145,680 $ 98,199
EMEA 7,030 7,818 23,989 14,848
APAC 2,968 3,219 9,145 6,187
-------- -------- -------- --------
$ 60,825 $ 58,409 $178,814 $119,234
======== ======== ======== ========
GAAP Operating Income (Loss):
Americas $ 260 $ (407)$ 17,708 $ (147)
EMEA 738 1,124 4,270 1,862
APAC (371) (1,143) 375 (1,514)
-------- -------- -------- --------
$ 627 $ (426)$ 22,353 $ 201
======== ======== ======== ========
Adjustments (pre-tax):
Americas:
Stock option expense $ 1,400 $ 1,010 $ 2,676 $ 2,410
Purchase amortization 741 741 1,725 1,482
Sales tax recoveries -- -- (234) --
Asset impairment charge -- -- -- --
Restructuring charge 59 2,960 -- 3,019
-------- -------- -------- --------
$ 2,200 $ 4,711 $ 4,167 $ 6,911
-------- -------- -------- --------
EMEA:
Restructuring charge $ -- $ 20 $ -- $ 20
-------- -------- -------- --------
$ -- $ 20 $ -- $ 20
-------- -------- -------- --------
APAC:
Restructuring charge $ 4 $ 849 $ -- $ 853
-------- -------- -------- --------
$ 4 $ 849 $ -- $ 853
-------- -------- -------- --------
-------- -------- -------- --------
Total Adjustments $ 2,204 $ 5,580 $ 4,167 $ 7,784
======== ======== ======== ========
Adjusted non-GAAP Operating
Income (Loss):
Americas $ 2,460 $ 4,304 $ 21,875 $ 6,764
EMEA 738 1,144 4,270 1,882
APAC (367) (294) 375 (661)
-------- -------- -------- --------
$ 2,831 $ 5,154 $ 26,520 $ 7,985
======== ======== ======== ========
3. Our services revenue consists of fees generated from professional
services and customer support and software enhancements related to
our software products as follows (in thousands):
2008
----------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
Professional services $41,718 $42,866 $40,693 $33,728
Customer support and software
enhancements 18,119 19,423 19,330 20,090
------- ------- ------- -------
Total services revenue $59,837 $62,289 $60,023 $53,818
======= ======= ======= =======
2009 2008 2009
----------------- -------- --------
1st Qtr 2nd Qtr YTD YTD
-------- -------- -------- --------
Professional services $ 32,345 $ 30,767 $ 84,584 $ 63,112
Customer support and software
enhancements 18,498 18,655 37,542 37,153
-------- -------- -------- --------
Total services revenue $ 50,843 $ 49,422 $122,126 $100,265
======== ======== ======== ========
4. Hardware and other revenue includes the following items
(in thousands):
2008
----------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
Hardware revenue $ 7,141 $ 5,428 $ 5,756 $ 4,916
Billed travel 3,034 3,408 3,155 3,083
------- ------- ------- -------
Total hardware and other revenue $10,175 $ 8,836 $ 8,911 $ 7,999
======= ======= ======= =======
2009 2008 2009
---------------- ------- -------
1st Qtr 2nd Qtr YTD YTD
------- ------- ------- -------
Hardware revenue $ 3,080 $ 2,992 $12,569 $ 6,072
Billed travel 1,980 1,869 6,442 3,849
------- ------- ------- -------
Total hardware and other revenue $ 5,060 $ 4,861 $19,011 $ 9,921
======= ======= ======= =======
5. Impact of Currency Fluctuation
The following table reflects the increases (decreases) in the
results of operations for each period attributable to the change in
foreign currency exchange rates from the prior period as well as
foreign currency gains (losses) included in other income, net for
each period (in thousands):
2008
----------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
Revenue $ 1,131 $ 1,189 $ 132 $(2,209)
Costs and expenses 1,601 911 (331) (3,112)
------- ------- ------- -------
Operating income (470) 278 463 903
Foreign currency gains (losses) in
other income 1,641 299 542 1,395
------- ------- ------- -------
$ 1,171 $ 577 $ 1,005 $ 2,298
======= ======= ======= =======
2009 2008 2009
---------------- ------- -------
1st Qtr 2nd Qtr YTD YTD
------- ------- ------- -------
Revenue $(2,387) $(1,996) $ 2,320 $(4,383)
Costs and expenses (3,307) (2,560) 2,512 (5,867)
------- ------- ------- -------
Operating income 920 564 (192) 1,484
Foreign currency gains (losses) in
other income (366) (506) 1,940 (872)
------- ------- ------- -------
$ 554 $ 58 $ 1,748 $ 612
======= ======= ======= =======
Manhattan Associates has a large research and development center in
Bangalore, India. The following table reflects the increases
(decreases) in the financial results for each period attributable to
changes in the Indian Rupee exchange rate (in thousands):
2008
----------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
Operating income $ (619) $ 59 $ 540 1,248
Foreign currency gains (losses) in
other income 94 385 787 549
------- ------- ------- -------
Total impact of changes in the
Indian rupee (525) $ 444 $ 1,327 $ 1,797
======= ======= ======= =======
2009 2008 2009
---------------- ------- -------
1st Qtr 2nd Qtr YTD YTD
------- ------- ------- -------
Operating income $ 1,129 $ 800 $ (560) $ 1,929
Foreign currency gains (losses) in
other income 336 (367) 479 (31)
------- -------- ------- -------
Total impact of changes in the
Indian rupee $ 1,465 $ 433 $ (81) $ 1,898
======= ======= ======= =======
6. Other income (expense) includes the following components
(in thousands):
2008
----------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
------- ------- ------- -------
Interest income $ 660 $ 351 $ 385 $ 272
Foreign currency gains (losses) 1,641 299 542 1,395
------- ------- ------- -------
Total other income (expense) $ 2,301 $ 650 $ 927 $ 1,667
======= ======= ======= =======
2009 2008 2009
---------------- ------- -------
1st Qtr 2nd Qtr YTD YTD
------- ------- ------- -------
Interest income $ 133 $ 102 $ 1,011 $ 235
Foreign currency gains (losses) (366) (506) 1,940 (872)
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Total other income (expense) $ (233) $ (404) $ 2,951 $ (637)
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7. Capital expenditures are as follows (in thousands):
2008
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1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
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Capital expenditures $ 2,716 $ 2,844 $ 1,258 $ 890
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2009 2008 2009
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1st Qtr 2nd Qtr YTD YTD
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Capital expenditures $ 873 $ 487 $ 5,560 $ 1,360
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8. Stock Repurchase Activity
During 2009, we repurchased 1,256,106 shares of common stock
totaling $20.0 million at an average price of $15.93. In 2008 for
the full year, we repurchased approximately 1.7 million shares of
common stock totaling $35.0 million at an average price of $20.52.