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SCP software market still in the doldrums, bellwether company financials indicate


Manugistics, considered by analysts as a bellwether for the Supply Chain Planning (SCP) software market, has posted tough third-quarter results.

Manugistics reported total revenue for 3Q03 of $62.4M, an 11% sequential decrease from an also down 2Q03. License revenue came in at $14.1M, representing a sequential decrease of 22%. When compared to the same quarter last year, total revenue decreased 12%, while license revenue decreased 36%. To date for fiscal year 2003, total revenue was $206.9M, a 13% decrease from the same period last year.

The vendor’s financials continue to portend a Supply Chain Planning (SCP) market that has been in a slump for almost two years," says Larry Lapide, a technology industry analyst with AMR Research.

Gregory Owens, Manugistics’ CEO, explained the disappointing results in part by saying that users are taking longer to sign new deals, with some contract slipping out of the quarter despite users’ verbal commitments to buy. However, he also said that he is encouraged by sales activity and a relatively stronger sales pipeline.

"Users continue to ask AMR Research whether Manugistics will survive. We continue to believe that as an established software company with more than 1,200 largely satisfied customers, Manugistics will survive on its own, or more likely as part of a larger entity," AMR comments. It adds that Manugistics is now competing in an overall SCP market that is down and mature, leaving Manugistics to compete against competitors such as SAP.


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