Supply-chain management and profit optimization software vendor Manugistics Group Inc. claims to have powered its way through a bad economy to post record annual revenue of $310 million, an increase of 16%, in fiscal year 2002, which ended Feb. 28.
Greg Owens, Manugistics' chairman and CEO, says effective business management made it possible for the company to increase its annual revenue despite a drop in software license revenue for the year. License revenue for 2002 was $129.8 million, compared with $139.3 million the previous year.
Services revenue increased from $73 million in 2001 to $106.5 million in the most recent fiscal year, and support revenue increased from $55.3 million last year to $73.8 million in fiscal 2002. The company reported an after-tax loss of $115 million for the year, compared with a $28 million after-tax loss last year.
In the most recent fourth quarter, total revenue declined from $89.2 million to $80.6 million, with software license revenue at $38 million for the quarter, down 23% from $49 million in the same quarter the prior year. After-tax loss for the quarter in 2002 was $1.3 million, compared with a $3.7 million net profit in the quarter the previous year.
Morgan Stanley analyst Chuck Phillips says the company's fourth-quarter license revenue far exceeded even his own firm's expectations and pointed to the company's adjusted operating profit of $189,000 in the fourth quarter versus adjusted operating loss of $10.1 million in the third quarter as a sign that Manugistics is well positioned to come out of the recession in good shape.