The company's software sales were particularly hard hit, falling 46% year-over-year to $24.5 million. In a statement, Manugistics executives said the weak numbers are "a direct result of the technology recession." Some analysts, however, believe that increased competition is hurting the company's sales. Tobin Smith, a hedge fund manager at ChangeWave Investment Research, notes that traditional CRM and ERP vendors are starting to incorporate supply-chain tools into their offerings.
Manugistics says it plans to reduce costs by $40 million this year, and cut its workforce by 12%. The company's customers include AT&T, Kraft Foods, and Philip Morris USA.