Supply-chain software vendor Manugistics Group said today that it's in preliminary merger discussions with an undisclosed vendor or vendors. The announcement of the talks, which had been rumored for weeks, came as Manugistics reported disappointing financial results for the quarter ended Nov. 30.
Manugistics posted a third-quarter net loss of $10.4 million, or 39 cents a share, compared with net income of $3.8 million, or 14 cents a share, in the year-earlier quarter. The loss included a one-time restructuring charge of $701,000. Revenue rose 2% from a year ago to $43 million.
Manugistics CEO William Gibson attributed the declines to "issues with execution, new competitive forces, and some market factors affecting our clients and prospects." Analysts note that Manugistics, whose stock price has fallen more than 70% this year, is increasingly being challenged in the supply-chain market by enterprise software leaders SAP, PeopleSoft, Oracle, and Baan, which are now Manugistics' most likely suitors.