Manhattan Associates posts record Q3 revenue
October 18, 2012 04:50 PM
Manhattan Associates Inc., a provider of web technology-based supply chain systems to major retailers and consumer brand manufacturers, reported third quarter revenue of nearly $96 million for the period ended Sept. 30, up 12% from a year earlier. The company attributes much of its gains to new contracts struck with several retailers and manufacturers, including Nike Inc., American Eagle Outfitters Inc., Cabela’s Inc., Bulova Corp. and Chanel.
“We recognized two $1 million-plus license revenue deals in the quarter; both were in the United States, one with a well-known retailer and the other with a well-known consumer goods company,” CEO Peter Sinisgalli said in a conference call with investment analysts this week, according to a transcript of the call from Seeking Alpha. Sinisgalli declined to mention those clients by name. Manhattan has 15 clients among the Internet Retailer Top 1000 e-retailers, including 13 in the Top 500 and two in the Second 500.
Manhattan says it also experienced strong demand in the quarter for smaller deals, and that it added three clients and expanded contracts with dozens of existing clients. To help maintain growth, the company added 75 employees in the third quarter and plans to hire 100 more in the near term, a spokeswoman says.
The company has more than 600 people in its research-and-development department, which includes the recently launched Manhattan Mobility Labs, a unit that is developing mobile applications that let clients access and manage supply chain information via smartphones, tablets and other mobile devices.
The company announced the following financial figures for the third quarter, compared to a year earlier:
● Total revenue of $95.84 million, up 11.9% from $85.60 million;
● Software licensing revenue of $16.16 million, up 19.0% from $13.57 million;
● Services revenue of $71.89 million, up 13.0% from $63.59 million;
● Net income of $13.81 million, down 7.2% from $14.88 million a year earlier;
● A 16.3% increase in the cost of services provided to clients, to $32.61 million from $28.05 million.
For the nine months ended Sept. 30 the company reported the following financial numbers, compared to a year earlier:
● Total revenue of $280.89 million, up 14.3% from $245.71 million;
● Software licensing revenue of $47.10 million, up 25.0% from $37.67 million;
● Services revenue of $211.58 million, up 15.3% from $183.45 million;
● Net income of $39.38 million, up 14.5% from $34.38 million a year earlier.
Nike is No. 72 in the Internet Retailer Top 500 American Eagle Outfitters No. 65 and Cabela’s No. 43.