Manugistics Group Inc. posted lower-than-expected per-share losses of 11 cents for its third quarter of 2002. But CEO Greg Owens predicts the supply-chain software company will achieve operating profitability in the first fiscal quarter of 2003, which ends in May 2002.
For the quarter ended Nov. 30, Manugistics posted a net loss of $7.6 million, compared with an adjusted net income of $3.7 million in the same quarter a year ago. For the just-closed third quarter, revenue decreased to $68.7 million from $70.0 million in the year-ago quarter and software revenue declined to $22.1 million from $35.8 million.
The announcement of losses that were 5 cents lower than expected and the company's projected profitability was well-received on Wall Street. Manugistics' stock was upgraded by three analyst firms and the stock price rose by more than 20%, more than $3, Friday morning. The company predicts losses of 5 cents to 7 cents in the fourth quarter.
Owens blames the continued poor economy and disruptions to sales caused by the Sept. 11 attacks for faltering sales in the quarter. He did try to sound optimistic, saying that already in the current quarter, the company has several deals worth more than $1 million each. He didn't provide details on those deals but says sales are growing among automotive, life sciences, consumer packaged goods, and government customers.