Logility Reports Preliminary Second Quarter of Fiscal Year 2008 Results

ATLANTA, Dec. 6 /PRNewswire-FirstCall/ -- Logility, Inc. (NASDAQ: LGTY) , a leading supplier of collaborative solutions to optimize the supply chain, today announced financial results for the second quarter of fiscal year 2008.

    Key Second quarter financial highlights include:

    -- Total revenues for the quarter ended October 31, 2007 were $11.1
       million, an increase of 11% over the second quarter of fiscal 2007;
    -- Software license fees for the quarter ended October 31, 2007 were $3.4
       million, an increase of 2% over the second quarter of fiscal 2007;
    -- Services and other revenues for the quarter ended October 31, 2007 were
       $2.0 million, an increase of 28% over the second quarter of fiscal
       2007;
    -- Maintenance revenues for the quarter ended October 31, 2007 were $5.7
       million, an increase of 12% over the second quarter of fiscal 2007; and
    -- Operating earnings for the quarter ended October 31, 2007 were $2.2
       million, an increase of 49% compared to operating earnings of $1.5
       million for the second quarter of fiscal 2007.

GAAP net earnings were $1.7 million or $0.13 earnings per fully diluted share, an increase of 50% for the second quarter of fiscal 2008 compared to net earnings of $1.1 million or $0.08 earnings per fully diluted share for the second quarter of fiscal 2007. Adjusted net earnings, which exclude stock option compensation expense and acquisition-related amortization of intangibles expense were $1.8 million or $0.14 earnings per fully diluted share for the quarter ended October 31, 2007, compared to adjusted net earnings of $1.3 million or $0.10 earnings per fully diluted share for the same period last year.

Total revenues for the six months ended October 31, 2007 were $23.1 million or an 18% increase compared to the comparable period last year. Software license fees for the six months were $8.1 million or a 22% increase compared to the same period last year. Services and other revenues were $4.1 million or a 35% increase compared to the same period last year. Maintenance revenues were $11.0 million or a 10% increase compared to the same period last year. For the six months ended October 31, 2007, the Company reported operating earnings of approximately $5.2 million or a 91% increase compared to operating earnings of $2.7 million for the same period last year.

GAAP net earnings were approximately $3.5 million or $0.26 per fully diluted share for the six months ended October 31, 2007 compared to net earnings of $2.0 million or $0.15 per fully diluted share for the same period last year. Adjusted net earnings, which for the current period exclude stock option compensation expense, acquisition-related amortization of intangibles expense and a non-cash tax valuation adjustment, were $4.2 million or $0.31 earnings per fully diluted share for the six months ended October 31, 2007 compared to net earnings of $2.4 million or $0.18 earnings per fully diluted share the same period last year, which exclude stock option compensation expense and acquisition related amortization of intangibles expense.

The Company is including adjusted net earnings and adjusted net earnings per share in the summary financial information provided with this press release as supplemental information relating to its operating results. This financial information is not in accordance with, or an alternative for, GAAP and may be different from non-GAAP net earnings and non-GAAP per share measures used by other companies. The Company believes that this presentation of adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations.

The overall financial condition of the Company remains strong, with cash and investments of approximately $39.7 million as of October 31, 2007. This is approximately a $3.5 million sequential increase in cash and investments compared to July 31, 2007 and approximately a $9.9 million increase compared to October 31, 2006.

"We are pleased with Logility's performance during the quarter, adding 24 new customers, growing revenues and increasing operating earnings by 49% compared to the second quarter of fiscal year 2007," said J. Michael Edenfield, Logility president and chief executive officer. "Our year-to-date financial performance has also been strong with double-digit growth in all revenue streams and 91% growth in operating earnings. Our industry-leading solutions, deep domain expertise, strong customer base and ability to deploy quickly, combined with our continued financial strength and organizational stability, provide a solid foundation upon which Logility will continue to deliver innovation and value for our customers."

"To remain competitive in today's global market, companies must become increasingly demand-driven and trim inefficiencies from their manufacturing, distribution and transportation operations," continued Edenfield. "Logility provides supply chain solutions that give small, medium, large and Fortune 500 companies the visibility they need to overcome global supply chain challenges, reduce costs, improve service and streamline sales and operations planning (S&OP)."

    Highlights for the second quarter of fiscal 2008 include:

    Customers:
    -- Notable new and existing customers placing orders with Logility in the
       second quarter include: Atek Medical, CooperVision, Cypress Medical,
       Henkel North America, Interface Modernform, Nike, PPG Refinish, Premier
       Farnell, Electrolux, SanMar Corporation, Stiefel Laboratories, and
       Whatman International.

    -- During the quarter, software license agreements were signed with
       customers located in 12 countries including; Australia, Brazil, China,
       France, Germany, Italy, Malaysia, South Africa, Switzerland, Thailand,
       the United Kingdom, and the United States.

    -- Logility customer Intertape Polymer Group (IPG) was featured along with
       Logility in an APICS webcast "Forecasting a Profitable Supply Chain".
       The webcast focused on how companies can improve forecast accuracy to
       increase supply chain profitability and discussed how IPG improved
       forecast accuracy, accelerated inventory turns and increased
       profitability with the help of Logility Voyager Solutions. "Forecasting
       a Profitable Supply Chain" was also a featured presentation at the
       APICS national conference held October 21-23, 2007.

    -- Logility's Supply Chain Power Hour "Buckle Up Transportation Savings"
       was the latest webcast in Logility's popular supply chain educational
       series. The webcast featured Logility customer Rockline Industries and
       Ian Hobkirk, senior analyst, logistics, AberdeenGroup who provided
       participants with the latest insight on centralizing transportation
       management to reduce costs and improve overall supply chain
       performance.

    -- Logility and Shaw Industries were featured in an APICS webcast on Sales
       and Operations Planning. The webcast, "S&OP: Turning Blame into Gain",
       focused on how companies can compete more effectively by synchronizing
       corporate planning processes with an integrated S&OP planning solution.


    Products and Technology:
    -- Demand Management, a wholly-owned subsidiary of Logility and a global
       resource for managing the supply chain, announced the addition of
       service parts management capabilities to its replenishment software
       solution. These capabilities automate the process of planning and
       aligning service parts inventories, resources, and processes to ensure
       optimal customer service and response with minimal risk and cost.

    -- Logility announced its new Carrier On-Boarding Service to accelerate
       implementations of Voyager Transportation Planning and Management. The
       new Carrier Portal, EDI and Carrier On-boarding capabilities streamline
       the business processes and communication with carriers and further
       accelerates rapid ROI by enabling visibility into loads, tenders, bids,
       shipment status information and freight payment.

    -- Logility was named to Software Magazine's annual Software 500, a
       revenue-based ranking of the world's largest software and services
       suppliers.  Logility has been consistently ranked in the list for more
       than five years and has steadily climbed in position as a result of the
       Company's continued growth in the supply chain management software
       market.

About Logility

With more than 1,240 customers worldwide, Logility is a leading provider of collaborative supply chain planning solutions that help small, medium, large and Fortune 1000 companies realize substantial bottom-line results in record time. Logility Voyager Solutions feature performance monitoring capabilities in a single Internet-based framework and provide supply chain visibility; demand, inventory and replenishment planning; sales and operations planning; supply and global sourcing optimization; transportation planning and execution; and warehouse management. Demand Solutions provide forecasting, demand planning and point-of-sale analysis for maximizing profits in manufacturing, distribution and retail operations. Logility customers include Avery Dennison Corporation, Brown Shoe Company, BP (British Petroleum), Hyundai Motor America, Leviton Manufacturing Company, McCain Foods, Pernod Ricard, Remington Products Company, Sigma Aldrich, Under Armour Performance Apparel and VF Corporation. Logility is a majority-owned subsidiary of American Software (NASDAQ: AMSWA) . For more information about Logility, call 1-800-762-5207 or visit http://www.logility.com.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, changes in general economic conditions, technology and the market for the Company's products and services including economic conditions within the e-commerce markets; the timely availability and market acceptance of these products and services; the challenges and risks associated with integration of acquired product lines and companies; the effect of competitive products and pricing; the uncertainty of the viability and effectiveness of strategic alliances; and the irregular pattern of the Company's revenues. For further information about risks the Company could experience as well as other information, please refer to the Company's Form 10-K for the year ended April 30, 2007 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact Vincent C. Klinges, Chief Financial Officer, Logility, Inc., 470 East Paces Ferry Rd., Atlanta, GA 30305, (404) 261-9777. FAX: (404) 264-5206; INTERNET: www.logility.com or E-mail: askLogility@logility.com.

Logility is a registered trademark and Logility Voyager Solutions is a trademark of Logility. Demand Solutions is a registered trademark of Demand Management, Inc., a wholly-owned subsidiary of Logility, Inc.. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.

                                LOGILITY, INC.
              Consolidated Statements of Operations Information
                    (In thousands, except per share data)
                                 (Unaudited)

                                   Second Quarter Ended    Six Months Ended
                                       October 31,           October 31,
                                                   Pct                   Pct
                                    2007    2006   Chg.   2007    2006   Chg.
    Revenues:
      License                      $3,399  $3,343    2%  $8,076  $6,644   22%
      Services & other              2,039   1,587   28%   4,051   3,003   35%
      Maintenance                   5,696   5,089   12%  10,971   9,966   10%
        Total Revenues             11,134  10,019   11%  23,098  19,613   18%

    Cost of Revenues:
      License                       1,520   1,497    2%   3,154   2,874   10%
      Services & other              1,023     837   22%   2,045   1,691   21%
      Maintenance                   1,267   1,220    4%   2,347   2,446   (4%)
        Total Cost of Revenues      3,810   3,554    7%   7,546   7,011    8%
    Gross Margin                    7,324   6,465   13%  15,552  12,602   23%

    Operating expenses:
      Research and development      1,948   1,762   11%   3,825   3,523    9%
      Less: capitalized
       development                   (630)   (587)   7%  (1,155) (1,183)  (2%)
      Sales and marketing           2,426   2,426    0%   4,878   4,932   (1%)
      General and administrative    1,293   1,297    0%   2,631   2,439    8%
      Acquisition related
       amortization of intangibles     87      87    0%     174     175   (1%)

        Total Operating Expenses    5,124   4,985    3%  10,353   9,886    5%

    Operating Earnings              2,200   1,480   49%   5,199   2,716   91%
      Interest Income & Other, Net    504     427   18%     913     770   19%
    Earnings  Before Income Taxes   2,704   1,907   42%   6,112   3,486   75%
         Income Tax Expense         1,031     792   30%   2,593   1,448   79%
    Net Earnings                   $1,673  $1,115   50%  $3,519  $2,038   73%

    Earnings per common share:
    Earnings Per Common Share -
     Basic                          $0.13   $0.09   44%   $0.27   $0.16   69%
    Earnings Per Common Share -
     Diluted                        $0.13   $0.08   63%   $0.26   $0.15   73%

    Weighted Average Number of
     Common Shares:
        Basic                      12,953  12,896        12,943  12,896
        Diluted                    13,307  13,232        13,343  13,253

    Reconciliation of Adjusted Net
     Earnings:
    GAAP Net Earnings              $1,673  $1,115        $3,519  $2,038
    Acquisition related
     amortization of
     intangibles(1)                    87      87           174     175
    Stock-based compensation (1)       89     105           177     205
    Tax valuation adjustment (non-
     cash)                            -       -             283     -
    Adjusted net earnings          $1,849  $1,307   41%  $4,153  $2,418   72%

    Adjusted Net Earnings per
     Share - Diluted                $0.14   $0.10   40%   $0.31   $0.18   72%


    (1) - Not income tax affected



                                LOGILITY, INC.
                    Consolidated Balance Sheet Information
                                (in thousands)
                                 (Unaudited)

                                           October 31,        April 30,
                                               2007              2007

    Cash and Short-term investments          $39,672           $32,316
    Accounts Receivable:
       Billed                                  4,978             7,764
       Unbilled                                1,361             1,412
    Total Accounts Receivable, net             6,339             9,176
    Deferred Tax Assets                          729             1,361
    Due from ASI                                 173             1,167
    Prepaids & Other Current Assets            2,126             1,995
         Current Assets                       49,039            46,015

    PP&E, net                                    447               436
    Capitalized Software, net                  5,921             6,042
    Goodwill                                   5,809             5,809
    Other Intangibles, net                     1,058             1,288
    Non-current Assets                            67                67

         Total Assets                        $62,341           $59,657

    Accounts Payable                            $416              $275
    Other Current Liabilities                  4,380             5,680
    Deferred Revenues                         10,840            11,350
          Current Liabilities                 15,636            17,305

    Deferred Income Taxes                      2,095             1,940
    Shareholders' Equity                      44,610            40,412

         Total Liabilities &
          Shareholders' Equity               $62,341           $59,657

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