Manhattan Associates posts second-quarter loss, suspends 2009 earnings outlook

Wednesday, July 22, 2009

Manhattan Associates posts second-quarter loss

ATLANTA — Manhattan Associates Inc., which provides software and services that help companies manage inventory and supplies, posted a second-quarter loss Tuesday, though adjusted results easily beat Wall Street’s expectations.

For the period ended June 30, the company posted a loss of $556,000, or 2 cents per share, compared with a profit of $9.1 million, or 37 cents per share, in the year-ago period.

Excluding one-time items, the company posted profit of 14 cents per share.

Revenue fell 35 percent to $58.4 million from $90.5 million.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 13 cents per share on revenue of $59.8 million. Analysts typically exclude one-time items.

Revenue from software licensing, services and hardware all fell during the period, though expenses also dropped.

“Similar to the first quarter, businesses continue to be hesitant to release capital. This is particularly true for larger capital expenditures,” President and CEO Pete Sinisgalli said in a statement. “As a result, we had no million-dollar contracts in either the first quarter or second quarter of the year.”

Meanwhile, the company suspended its guidance for the rest of 2009.

Shares fell 20 cents to $16.30 in aftermarket trading. The stock has traded from $13.66 to $26.28 in the past 52 weeks.

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