Manugistics turned in smaller than expected losses for its fourth fiscal quarter, although they were still significant.
For the quarter, which ended on 28 February, 1999, the supply chain applications vendor saw revenues fall to $40.5 million from $63.3 million last time.
It also turned in proforma net losses of $19.3 million or $0.72 losses per share, not including restructuring charges of $33.1 million and a deferred tax valuation allowance of $18.8 million, compared to proforma profits of $6.7 million or $0.27 earnings per share in the year ago quarter, not including a $47.3 million hit related to the purchase of Promira Software.
The First Call analysts? consensus had expected losses per share of $0.77, however, which caused the firm?s share price to close up $0.6875 at $6.75.
William Gibson, Manugistics? chairman and chief executive, said: "Although we reported a significant operating loss in the quarter, we accomplished our restructuring goals announced on 19 January, 1999, and we believe we have stabilised the business."
At the time, the company axed 30 per cent of its workforce, or 400 jobs, while Joseph Broderick, executive vice president of client sales and services, and Keith Enstice, senior vice president of global consulting services, both resigned.
Manugistics also said it had broken off negotiations with prospective buyers and planned to go it alone despite widespread rumours on Wall Street at the end of last year that it was on the verge of being acquired by Peoplesoft (see VNU Newswire,15 December, 1998). Other names in the frame were rival i2 and Oracle.
For its full fiscal year, Manugistics? sales dropped to $177.6 million from $180.3 million a year ago, while it made proforma net losses of $54.1 million or $2.05 losses per share, compared with proforma profits of $15.4 million or $0.66 earnings per share in the same period last year.
To comment on this story, email [email protected]
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago