Manugistics Group Inc., a provider of inventory and profit management software programs, announced Tuesday that it would be acquired for $211 million in cash by Scottsdale, Ariz.-based competitor Scientific Time Sharing Corp.
Following the merger, the company will be headquartered in Scottsdale, though officials say they plan to continue operations in Rockville.
The announcement of the merger coincided with Manugistics? release of its preliminary results for its fiscal 2006 fourth quarter ended February 8.
The Rockville-based company expects to report total revenue of $44 million to $46.5 million, including software revenue of $9 million to $10 million, for the fourth quarter of fiscal 2006. The company?s projections compare to total revenue of $45.2 million and software revenue of $8.1 million in the fourth quarter of 2005.
Additionally, the company projects that it will report services and reimbursed expenses revenue of $13.5 million to $14.5 million for the fourth quarter of fiscal 2006, compared to services and reimbursed expenses revenue of $16.5 million in the fourth quarter of fiscal 2005.
In its most positive forecast, Manugistics expects to report generally accepted accounting principles operating income of $2.5 million to $4 million, GAAP net income of $2.5 million to $3.5 million and GAAP earnings per basic and diluted share of 3 to 4 cents when it reports final results for the fourth quarter of fiscal 2006. These figures would be compared to a GAAP operating loss of $15.7 million, a GAAP net loss of $17.2 million, and a GAAP net loss per basic and diluted share of 21 cents in the fourth quarter of 2005.
“We are pleased that this quarter will mark Manugistics? return to a positive net income on a GAAP basis,” Joe Cowan, the company?s chief executive, said in a statement. “We have achieved what we set out to do since my arrival in 2004: to reach profitability.”
