Software vendor Manugistics Group Inc. rewarded its new chief executive with the company's first profitable quarter in more than a year.
In fiscal first quarter results released after market close Tuesday, the Rockville, Md.-based provider of supply chain management software posted net income of $400,000, or a penny a share, easily topping forecasts. First Call's survey of 12 analysts predicted a loss of 4 cents a share.
At $39.2 million, first quarter quarter sales remained lower than a year earlier, when Manugistics lost $8.5 million, or 33 cents a share, on revenues of $41.1 million. Tuesday's announcement marks the profit for Manugistics in five quarters.
"We are turning the corner and are well positioned for the future," said Greg Owens, who became president and CEO of Manugistics two months ago. "Our positive performance reaffirms the confidence of our customers, employees and partners. ...We intend to move swiftly to energize the company by adding new talent, delivering enhanced solutions, and creating a world-class sales organization."
Investors expecting good news. Shares of Manugistics gained 2 3/8 to 15 5/16 in trading prior to the earnings announcement.
All 11 analysts surveyed by Zack's Investment Research maintain the equivalent of "hold" ratings on Manugistics stock.>