Fulfilling its gloomy predictions, Manugistics Group Inc. reported yesterday that it suffered a net loss of $8.246 million, or 32 cents per share, in its first fiscal quarter.
The Rockville software firm had net income of $2 million, or 9 cents per share, in the same quarter last year.
On May 21, Manugistics warned that it would post a loss for the quarter ended May 21, rather than the expected earnings of 11 cents to 14 cents per share.
Wall Street reacted ferociously to that announcement, sending Manugistics' stock into a free fall that cost it 48 percent of its value in two days.
Investors didn't have a chance to react yesterday to the earnings report because Manugistics issued it after the markets closed.
In yesterday's trading, the company's stock rose 50 cents to $24.6875.
"We were disappointed," a Manugistics spokesman said last night. "We're going to move forward."
The company had said it expected overall revenue to increase, and that turned out to be true. The company had $39.8 million in revenue in the quarter, 15.6 percent more than the $34.5 million it took in during the same quarter in 1997.
Still, there was cause for concern. Manugistics' software license revenue was only $16.7 million during the quarter, which ended May 31. This marked a 16.8 percent drop from last year's first-quarter software sales of $20.1 million.
The company said this revenue shortfall contributed to the quarterly loss, as did expenses from such long-term programs as the revampment of the sales force.
In addition, Manugistics contended with the costs of its acquisitions. On Feb. 13, the company bought Promira Software Inc. of Ottawa in a deal valued at $68 million.
And Manugistics has continued to buy other companies.
In a deal that was too recent to show up directly on the earnings report, Manugistics announced June 1 that it is buying Tyecin Systems Inc. in a stock acquisition deal that was valued at about $9.5 million.
Pub Date: 6/10/98