Manugistics Ups License Revenue, But Red Ink Still Flows



Supply-chain application vendor Manugistics Inc. on Thursdayreported a surge in license revenues for the fourth quarter, but the profit-barren company is still not out of the red.

For the quarter ended Feb. 29, Manugistics earned $43.7 million in revenue, compared with $40.5 million the same quarter a year ago. Of that, it made $22 million in license fee revenue, representing a 51% increase from the previous quarter and 45% increase from the previous year. The company lost $1.1 million, bringing total losses for the year to $9 million, compared with $96.1 million for the previous year.

Manugistics is in the sizzling market for supply-chain applications and business-to-business Internet applications, but has always been also-ran to market leader i2 Technologies Inc. "It's encouraging to see their license revenues are up," says Yankee Group analyst Stannie Holt. "But it's in comparison to an abysmal previous quarter and an abysmal last year. Manugistics has been in slump since '98 and still running a loss."

Holt says the company has scored a few points by moving more aggressively into business-to-business E-commerce. In January, Manugistics outlined it strategy for providing software and services to build online trading networks and introduced an upcoming product called Bstreamz.com. Says Holt: "They're figuring out it's a relatively short jump from Web enabling supply-chain collaboration to B-to-B E-commerce."

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