Back to GetFilings.com



Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended January 31, 2004

 

OR

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to             

 

Commission File Number 0-23057

 

 

LOGILITY, INC.

(Exact name of registrant as specified in its charter)

 

 

Georgia   58-2281338

(State or other jurisdiction of

incorporation or organization)

  

(IRS Employer

Identification Number)

 

470 East Paces Ferry Road, N.E., Atlanta, Georgia   30305
(Address of principal executive offices)   (Zip Code)

 

(404) 261-9777

(Registrant’s telephone number, including area code)

 

None

(Former name, former address and former fiscal year, if changed since last report)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

 

Indicate the number of shares outstanding of the issuer’s common stock, as of the latest practicable date.

 

Class

  

Outstanding at March 12, 2004

Common Stock, no par value   13,140,804 Shares

 

Table of Contents

LOGILITY, INC.

 

Form 10-Q

Quarter Ended January 31, 2004

 

Index

 

     Page
Number

Part I – Financial Information

    

Item 1. Financial Statements

    

Condensed Balance Sheets (Unaudited) January 31, 2004 and April 30, 2003

    3

Condensed Statements of Operations (Unaudited) Three and Nine Months Ended January 31, 2004 and 2003

    4

Condensed Statements of Cash Flows (Unaudited) Nine Months Ended January 31, 2004 and 2003

    5

Notes to Condensed Financial Statements (Unaudited)

    6-11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

   11-20

Item 3. Quantitative and Qualitative Disclosures About Market Risk

   20

Item 4. Controls and Procedures

   21

Part II – Other Information

    

Item 1. Legal Proceedings

   21

Item 2. Changes in Securities and Use of Proceeds

   22

Item 3. Defaults Upon Senior Securities

   22

Item 4. Submission of Matters to a Vote of Security Holders

   22

Item 5. Other Information

   22

Item 6. Exhibits and Reports on Form 8-K

   22

 

2

Table of Contents

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

LOGILITY, INC.

Condensed Balance Sheets (Unaudited)

(in thousands, except share data)

 

     January 31,
2004
    

April 30,

2003

  
ASSETS                 

Current Assets:

                 

Cash and cash equivalents

    $ 7,279     $ 8,573  

Investments

      22,090       18,440  

Trade accounts receivable, less allowance for doubtful accounts of $207 at January 31, 2004 and $189 at April 30, 2003:

                 

Billed

      3,142       3,112  

Unbilled

      1,166       2,727  

Prepaid expenses and other current assets

      482       328  
    
 

Total current assets

      34,159       33,180  

Furniture and equipment, less accumulated depreciation and amortization

      294       591  

Capitalized computer software development costs, less accumulated amortization

      6,552       6,947  

Other assets, net

      839       784  
    
 
     $ 41,844     $ 41,502  
    
 
LIABILITIES AND SHAREHOLDERS’ EQUITY                 

Current liabilities:

                 

Accounts payable

    $ 391     $ 52  

Accrued compensation and related costs

      1,104       1,621  

Other current liabilities

      642       1,502  

Deferred revenue

      5,138       5,531  

Due to American Software, Inc.

      2,206       1,972  
    
 

Total current liabilities

      9,481       10,678  
    
 

Shareholders’ equity:

                 

Preferred stock: 2,000,000 shares authorized; no shares issued

      —         —    

Common stock, no par value; 20,000,000 shares authorized; 13,959,069 and 13,890,839 shares issued at January 31, 2004 and April 30, 2003, respectively

      —         —    

Additional paid-in capital

      44,924       44,712  

Accumulated deficit

      (7,444 )     (9,088 )

Treasury stock, at cost – 818,265 and 745,965 shares at January 31, 2004 and April 30, 2003, respectively

      (5,117 )     (4,800 )
    
 

Total shareholders’ equity

      32,363       30,824  
    
 
     $ 41,844     $ 41,502  
    
 

 

See accompanying notes to condensed financial statements - unaudited.

 

3

Table of Contents

Item 1. Financial Statements (continued)

 

LOGILITY, INC.

Condensed Statements of Operations (Unaudited)

(In thousands, except per share data)

 

     Three Months Ended
January 31,
     Nine Months Ended
January 31,
  
     2004
     2003
     2004
     2003
  

Revenues:

                                 

License fees

    $ 2,562     $ 2,342     $ 4,847     $ 5,355  

Services and other

      1,120       1,335       3,855       4,112  

Maintenance

      2,832       2,772       8,341       8,183  
    
 
 
 

Total revenues

      6,514       6,449       17,043       17,650  
    
 
 
 

Cost of revenues:

                                 

License fees

      1,076       1,133       3,045       2,890  

Services and other

      611       733       1,978       2,649  

Maintenance

      461       443       1,363       1,390  
    
 
 
 

Total cost of revenues

      2,148       2,309       6,386       6,929  
    
 
 
 

Gross margin

      4,366       4,140       10,657       10,721  
    
 
 
 

Operating expenses:

                                 

Research and development

      1,337       1,312       4,097       4,047  

Less: capitalized computer software development costs

      (801 )     (668 )     (2,452 )     (2,157 )

Sales and marketing

      1,985       1,755       5,205       5,657  

General and administrative

      901       898       2,382       2,590  
    
 
 
 

Total operating expenses

      3,422       3,297       9,232       10,137  
    
 
 
 

Operating income

      944       843       1,425       584  
    
 
 
 

Other income, net

      109       84       219       466  
    
 
 
 

Income before income taxes

      1,053       927       1,644       1,050  

Income taxes

      —         —         —         —    
    
 
 
 

Net earnings

    $ 1,053     $ 927     $ 1,644     $ 1,050  
    
 
 
 

Basic net earnings per common share

    $ 0.08     $ 0.07     $ 0.13     $ 0.08  
    
 
 
 

Diluted net earnings per common share

    $ 0.08     $ 0.07     $ 0.12     $ 0.08  
    
 
 
 

Shares used in the calculation of earnings per common share:

                                 

Basic

      13,111       13,177       13,117       13,196  
    
 
 
 

Diluted

      13,343       13,195       13,323       13,206  
    
 
 
 

 

See accompanying notes to condensed financial statements - unaudited.

 

4

Table of Contents

Item 1. Financial Statements (continued)

 

LOGILITY, INC.

Condensed Statements of Cash Flows (Unaudited)

(in thousands)

 

     Nine Months Ended
January 31,
  
     2004
     2003
  

Cash flows from operating activities:

                 

Net earnings

    $ 1,644     $ 1,050  

Adjustments to reconcile net earnings to net cash provided by operating activities:

                 

Depreciation and amortization

      3,224       2,965  

(Increase) decrease in assets:

                 

Accounts receivable

      1,531       244  

Prepaid expenses and other assets

      (209 )     100  

Increase (decrease) in liabilities:

                 

Due to American Software, Inc.

      234       135  

Accounts payable, accrued costs and other current liabilities

      (1,038 )     (500 )

Deferred revenues

      (393 )     290  
    
 

Net cash provided by operating activities

      4,993       4,284  
    
 

Cash flows from investing activities:

                 

Additions to capitalized computer software development costs

      (2,452 )     (2,157 )

Proceeds from maturities of investments

      74,714       68,089  

Purchases of investments

      (78,364 )     (66,681 )

Purchases of furniture and equipment

      (80 )     (60 )
    
 

Net cash used in investing activities

      (6,182 )     (809 )
    
 

Cash flows from financing activities:

                 

Repurchases of common stock

      (317 )     (203 )

Proceeds from exercise of stock options

      212       9  
    
 

Net cash used in financing activities

      (105 )     (194 )
    
 

Net change in cash and cash equivalents

      (1,294 )     3,281  

Cash and cash equivalents at beginning of period