Manugistics Group (Nasdaq: MANU) easily beat analyst estimates in the second quarter and announced plans for a $366 million stock acquisition.
After market close Thursday, the vendor of supply chain management software reported fiscal second quarter earnings of $1 million, or 4 cents per share, excluding special charges. First Call's survey of 10 analysts predicted breakeven results for the quarter ended Aug. 31.
Also Thursday, Manugistics unveiled an agreement to buy privately-held Talus Solutions for 4.2 million to 5 million shares of stock. The deal is valued at $366 million at Wednesday's closing prices.
Shares of Manugistics slid to 79.5 in Thursday's afterhours activity on the Island electronic communications network, following the news. Manugistics stock closed Thursday's regular trading at 86.875, down 0.25 for the session.
Companies use Talus software to help determine prices for their products. Technology from Talus will be integrated with Manugistics' software. Talus generated revenue of about $40 million in fiscal 1999.
Second quarter revenue rose 72 percent year-over-year to $58.2 million. License revenue gained 165 percent to $28.5 million.
The average of Manugistics' contracts during the quarter was $1.2 million, more than 120 percent higher than the year earlier period.
Including $20.7 million in non-cash charges related to stock compensation, Manugistics in the second quarter lost $19.7 million, or 69 cents per share.>