| Logility, Inc. | |||
| Ticker: | LGTY | 470 East Paces Ferry Road, N.E. | |
| Exchange: | NASDAQ-National Market | Atlanta, GA 30305 | |
| Industry: | High-Tech (SIC Code 7379) | (404) 261-9777 | |
| # of Employees: | 185 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/12/97 | |
| U.S. Shares: | 2,200,000 | Offer Date: | 10/6/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $11.00 - $13.00 | |
| Primary Shares: | 2,200,000 | Offer Price: | $14.50 | |
| Secondary Shares: | 0 | Gross Spread: | $1.01 | |
| Offering Amount: | $26,400,000 | Selling: | $0.56 | |
| Expenses: | $850,000 | Reallowance: | $0.10 | |
| Shares Out After: | 13,500,000 |
| Manager | Tier | Phone |
| Montgomery Securities | Lead Manager | (415) 627-2100 |
| Cowen & Company | Co-manager | (212) 495-6000 |
| Issuer's Law Firm: | Gambrell & Stolz, L.L.P. |
| Bank's Law Firm: | Testa, Hurwitz & Thibeault |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | Wachovia Bank of North Carolina |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 4/30/97 | 4/30/97 | ||||
| Revenue: | $21.82 | Assets: | $16.37 | ||
| Net Income: | -$1.95 | Curr Assets: | $7.46 | ||
| EPS: | -$0.17 | Liabilities: | $9.70 | ||
| Prior EPS: | -$0.25 | Curr Liabilities: | $6.90 | ||
| Cash Flow/Oper: | $2.69 | Equity: | $6.67 | ||
| Cash Flow/Fin: | $1.41 | Cash: | $0.73 | ||
| Cash Flow/Inv: | -$3.38 | Working Cap: | $0.56 | ||
| Business Description |
| The company develops, markets and supports software applications that optimize the operating efficiencies of manufacturers, suppliers, distributors, retailers and other organizations along the value chain. The value chain refers to the complex network of relationships that organizations maintain with trading partners to source, manufacture and deliver products to the customer. The Company's solution, Logility Value Chain Solutions, consists of an integrated software suite that provides advanced collaborative planning and integrated logistics capabilities that are designed to reduce inventory costs, improve forecast accuracy, decrease order cycle times, optimize production scheduling, streamline logistics operations, reduce transportation costs and improve customer service. The Company markets its solution primarily to Global 2000 enterprises through a dedicated sales force and through relationships with third-party vendors and service providers. |
| Competition |
| The Company's products are targeted at emerging markets within the application software market, which is intensely competitive and characterized by rapid technological change. The Company's existing competitors are diverse and offer a variety of solutions directed at various aspects of the value chain, as well as the enterprise as a whole. In addition the Company faces potential competition for the Logility Value Chain Solutions software from (i) internal development efforts by corporate information technology departments, (ii) smaller independent companies that have developed or are attempting to develop value chain management software that competes with the Company's software solution, and (iii) other business application software vendors that may broaden their product offerings by internally developing, or by acquiring or partnering with independent developers of, value chain management software. Many of the Company's competitors and potential competitors have longer operating histories, significantly greater financial, technical, marketing and other resources, greater name recognition and a larger installed base of customers than the Company. In order to be successful in the future, the Company must continue to respond promptly and effectively to technological change and competitors' innovations. The Company's competitors may be able to respond more quickly to new or emerging technologies and changes in customer requirements or devote greater resources to the development, promotion and sale of their products than the Company. The principal competitive factors affecting the market for the Company's products include vendor and product reputation; product architecture, functionality and features; costs; ease and speed of implementation; return on investment; product quality, price and performance; and level of support. There can be no assurance that the Company will be able to compete successfully against current and future competitors, and the failure to do socould have a material adverse effect upon the Company's business, operating results and financial condition. |
| Business Plan |
| The company's objective is to become the leading provider of value chain management software solutions that are designed to enhance collaboration among participants along the value chain and optimize the operations associated with manufacturing and the distribution of products. The company's strategy includes the following key elements: (I) Leverage and Expand Installed Base of Customers, (ii) Continue to Expand Sales and Marketing, (iii) Maintain Technology Leadership, (iv) Focus on Integrated Planning and Logistics Execution Solution, (v) Increase Penetration of International Markets, (vi) Leverage Strategic Relationships and (vii) Continue to Focus on Providing High Quality Customer Service. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for research and development, sales and marketing, working capital and other general corporate purposes and possible acquisitions. |
| Name of Shareholder | % Owned Before | % Owned After |
| James C. Edenfield | 83.70% | |
| American Software | 83.70% |
| Officer Name | Title | Age |
| James C. Edenfield | Chairman of the Board of Directors | 62 |
| J. Michael Edenfield | Chief Executive Officer, President and Director | 39 |
| James M. Modak | Chief Financial Officer and Senior Vice President | 40 |
| Donald L. Thomas | Vice President--Customer Service | 50 |
| Andrew G. White | Vice President--Research and Development | 32 |
| Lawrence R. Olin | Vice President--Sales, North America | 45 |