Correction: An earlier version of this report indicated Manugistics jumped on a deal with John Deere. Word of a deal with Cisco actually moved shares. The John Deere pact was announced on Aug. 22. We regret the error. A corrected version follows.
Manugistics Group, Inc. (Nasdaq: MANU) closed up 18, or 29 percent, to 80 Monday on chatter about a deal with Cisco Systems.
According to published reports, Manugistics won a multimillion dollar contract from Cisco. Josepthal analyst Bert Hochfield said the deal was valued at $10 million, but could grow as Cisco deploys the software, according to the reports.
Manugistics shares were up 10 1/2 to 72 1/2, vaulting over their 52-week high of 70 1/4. The stock, which has been highly erratic, surged 46 percent, to 36 7/16 after it met analysts' estimates in its first quarter.
Manugistics, which competes with i2 (Nasdaq: ITWO), has been in the spotlight as more investors focus on the company's turnaround prospects.
The company recently landed a contract with John Deere (NYSE: DE), which will use the company's e-business software.
John Deere expects to improve its product flow to distribution centers and enhance communication with carriers through the deal.
Manugistics' technology will also help improve capacity utilization at John Deere's fleet and distribution centers, improve service levels, and reduce costs, the companies said.
John Deere said the company was selected following a competitive bid process. Financial details were not disclosed.