Washington Post 200: Manugistics Group Inc.

Year founded: 1969

Industry: Information technology

Post 200 Category: Top 125 Companies

Revenue: $193.11 Million

Net Income/Loss: ($55,271,000.00)

Earnings per share: ($0.67)

Dividend: n/a

Stockholder equity: $164.75 Million

Auditor: Deloitte & Touche LLP

Stock: MANU

Assets: $440.28 Million

Market capitalization: $126.49 Million

52-week high: 6.06 4/14/2004

52-week low: 1.51 4/14/2005

CEO: Joe Cowan

EVP and CFO: Raghavan Rajaji

Employees: 733

Local employees: 365

Description: Manugistics sells supply-chain-management software to corporations.

Developments: Manugistics had another rough year in 2004, marked by executive shake-ups, layoffs and continued loss of revenue. While the company's shares were valued at more than $9 at the beginning of 2004, the stock price fell to less than $3 per share by year-end. Manugistics blamed decreased corporate spending and extended sales cycles for losses that, for example, doubled in its second quarter, when they reached $17.1 million, compared with an $8 million loss during the same period the year before. The company's financial woes led to changes in its top management. Gregory J. Owens stepped down as chief executive in July, ceding the role to Joe Cowan, who was previously chief executive of a Dallas firm, EXE Technologies. In August, Manugistics fired its president, Jeremy P. Coote, who had served little more than a year, and said it would not replace him. The company in September said it would lay off 90 employees by February 2005, reducing the total number of workers at the company to 733. It had already laid off 50 employees in the summer, a move that cost the company $6.2 million in restructuring charges, including $2 million in severance packages. In October, the company's board of directors said that although it was not responding to a specific bid, it had instituted a plan that would block "unfair takeover strategies." The plan lets shareholders buy new preferred stock at half-price if an investor buys more than 20 percent of the companies' shares or attempts a hostile takeover. In April 2005, Owens resigned his remaining position as chairman and was replaced by Kevin C. Melia. Early this year, Manugistics had a bit of good news, announcing it had formed a partnership with International Business Machines Corp. to track store inventory. Cowan has said the company will step up its work selling consulting services in addition to its core business, software.

Executive Compensation
Former President: Jeremy P. Coote
Total Cash: $272,767.00
Total Compensation: $5,146,071.00

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