Logility Reports Slight Revenue Decline, Acquires Garvis AI Limited

Logility Supply Chain Solutions, Inc. (formerly American Software, Inc.) reported its financial results for the three and six months ended October 31, 2024, revealing a slight decline in total revenues. For the three-month period, total revenues amounted to $25.3 million, a decrease of 2% from $25.7 million in the same period last year. The six-month revenue figures remained relatively flat at $51.5 million compared to $51.6 million in the prior year. The company experienced a notable 9% increase in subscription fees, which reached $14.5 million, but this was offset by a 68% drop in license fees and a 13% decline in maintenance revenue.

In terms of profitability, Logility reported a net income of $1.7 million for the three months ended October 31, 2024, compared to $2.4 million in the same period last year. The earnings per share from continuing operations increased to $0.05, up from $0.02 in the prior year. However, the overall net earnings attributable to common shareholders showed a loss of $2.0 million, primarily due to the impact of the recent reclassification of common stock and the associated accounting adjustments. The company’s operating income for the quarter was $1.0 million, down from $1.2 million a year earlier.

Logility has made strategic moves during the reporting period, including the acquisition of Garvis AI Limited, a SaaS startup specializing in AI-driven demand forecasting. This acquisition, completed in September 2023 for approximately $25 million, is expected to enhance Logility's supply chain management capabilities by integrating AI technologies into its existing platform. Additionally, the company has undergone a reclassification of its common stock, eliminating Class B shares and converting them into Class A shares, which has resulted in a change in the structure of its equity.

Operationally, Logility serves approximately 550 clients across 80 countries, with a significant presence in key verticals such as consumer packaged goods and food and beverage. The company reported a decrease in its employee headcount, with 392 full-time personnel as of October 31, 2024, down from 423 a year earlier. The company’s cash and cash equivalents stood at $44.6 million, a decrease from $63.0 million a year ago, while investments increased to $39.6 million from $20.9 million.

Looking ahead, Logility anticipates that the ongoing global economic challenges may impact client spending on technology upgrades. However, the company believes that its software solutions are essential for improving productivity and profitability in supply chain operations, which could create a favorable selling environment. The management remains optimistic about leveraging its recent acquisitions and product enhancements to drive future growth, despite the potential for fluctuations in revenue due to market conditions.