Logility Financial Reports

Logility Reports Record Revenues and Record Earnings driven by 107% Growth in Annual License Fees, Total Annual Revenues Increase by 50%

Extract from the Press Release by Logility Inc. (June 22, 2006)

Demand Management Inc., the developer of the Demand Solution suite of softwares is a wholly owned subsidiary of Logility Inc.

As a publically listed company Logility issues Quarterly and Annual operating results.

Key fiscal year 2006 financial highlights include:

  • Total revenues for the twelve months ended April 30, 2006 were $37.3 million, a 50% increase compared to the comparable period last year;
  • Operating earnings for the twelve months ended April 30, 2006 were a record $6.0 million, compared to an operating loss of $876,000 for the same period last year.

The twelve-month fiscal 2005 financial data included only the months of October 2004 through April 2005 for revenue and expenses from the Demand Management, Inc. subsidiary acquired by the Company on September 30, 2004, whereas the entire twelve-month period in fiscal 2006 included revenue and expenses from Demand Management.

The overall financial condition of the Company remains strong, with cash and investments of approximately $27.0 million.

Statement targeted at Investors and Shareholders in the USA

“Logility’s performance during the fourth quarter and fiscal year 2006 was outstanding. We delivered record annual revenues, operating earnings and net earnings, which were driven by an impressive 107% increase in license fee revenue for the year,” said J. Michael Edenfield, Logility president and chief executive officer. “We signed a record 88 new customers during the fiscal year and expanded deployments of our supply chain solutions with an impressive number of existing customers, which underscores our ability to deliver a substantial return on investment for our customers through improved demand visibility, reduced costs and increased service levels.”

“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,” continued Edenfield. “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.”

Highlights for the fourth quarter and fiscal year 2006 include:

Customers:

  • During the year, Logility signed a record 88 new customers and extended its relationship with an impressive number of existing customers. Software license agreements were signed with both new and existing customers located in 20 countries.
  • Notable new and existing customers placing orders with Logility in the fourth quarter include: ARC International Cookware, Associated Hygienic Products, Basic American Foods, Behringer Holdings, Intertape Polymer Group, Jacuzzi UK, Klaussner, Millipore, New Breed, Parmalat South Africa, Rafaella Apparel Group, Scanlan International, and Shaw Industries.
  • Demand Management hosted its 19th annual User Group conference in San Antonio, TX with the theme Supply Chain in Harmony featuring top-performing technologies and real-world tips for planning and forecasting success.