 Company raises full-year Revenue and EPS guidanceATLANTA, July 23, 2020 GLOBE NEWSWIRE -- Leading Supply Chain and Omnichannel Commerce Solutions provider Manhattan Associates Inc. NASDAQ: MANH today reported revenue of 135.6 million for the second quarter ended June 30, 2020. GAAP diluted earnings per share for Q2 2020 was 0.30 compared to 0.32 in Q2 2019. Non-GAAP adjusted diluted earnings per share for Q2 2020 was 0.40 compared to 0.42 in Q2 2019.Manhattan Associates reported solid second quarter financial results, said Manhattan Associates president and CEO Eddie Capel. Our growing cloud business continues to outperform, with continued strength in both revenue and bookings. As a result, we are raising our full-year revenue and earnings guidance. Furthermore, while early, we are seeing strong interest in our recently released Manhattan Active Warehouse Management solution, which should continue to provide momentum for our cloud business in the years to come.There is no doubt that near-term impacts to global economic activity continue to manifest themselves due to the COVID-19 pandemic, Mr. Capel continued. Specifically, we have seen sales cycles lengthen as customers and prospects simultaneously contend with the pandemic while evaluating our solutions. Additionally, we have seen delays in services-related project work, leading to a year-over-year decline in services revenue.However, we remain very confident in the long-term outlook for our business, driven by the continued need for innovative solutions within the supply chain and omnichannel commerce markets, Mr. Capel concluded. We will continue to position the company to capitalize on these evolving trends while driving long-term sustainable growth for all of our stakeholders globally.SECOND QUARTER 2020 FINANCIAL SUMMARY: Consolidated total revenue was 135.6 million in Q2 2020, compared to 154.3 million in Q2 2019.o Cloud subscription revenue was 18.5 million in Q2 2020, compared to 9.0 million in Q2 2019.o License revenue was 5.7 million in Q2 2020, compared to 11.7 million in Q2 2019.o Service revenue was 71.8 million in Q2 2020, compared to 94.0 million in Q2 2019. GAAP diluted earnings per share was 0.30 in Q2 2020, compared to 0.32 in Q2 2019. Adjusted diluted earnings per share, a non-GAAP measure, was 0.40 in Q2 2020, compared to 0.42 in Q2 2019. GAAP operating income was 26.7 million in Q2 2020, compared to 27.6 million in Q2 2019. Adjusted operating income, a non-GAAP measure, was 34.3 million in Q2 2020, compared to 36.2 million in Q2 2019. Cash flow from operations was 48.8 million for Q2 2020, compared to 37.2 million for Q2 2019. Days Sales Outstanding was 73 days at June 30, 2020, compared to 61 days at December 31, 2019. Cash and investments totaled 123.6 million at June 30, 2020, compared to 75.3 million at March 31, 2020. In April 2020, the Company suspended its share repurchase program because of COVID-19-related considerations. Accordingly, during the three months ended June 30, 2020, the Company did not repurchase any shares of Manhattan Associates common stock under the share repurchase program. The Companys authorized repurchase limit remains at 50 million.SIX MONTH 2020 FINANCIAL SUMMARY: Consolidated revenue for the six months ended June 30, 2020, was 289.5 million, compared to 302.7 million for the six months ended June 30, 2019.o Cloud subscription revenue was 35.8 million for the six months ended June 30, 2020, compared to 16.9 million for the six months ended June 30, 2019.o License revenue was 15.4 million for the six months ended June 30, 2020, compared to 24.1 million for the six months ended June 30, 2019. o Service revenue was 159.2 million for the six months ended June 30, 2020, compared to 182.6 million for the six months ended June 30, 2019. GAAP diluted earnings per share for the six months ended June 30, 2020, was 0.65, compared to 0.64 for the six months ended June 30, 2019. Adjusted diluted earnings per share, a non-GAAP measure, was 0.80 for the six months ended June 30, 2020, compared to 0.83 for the six months ended June 30, 2019. GAAP operating income was 50.9 million for the six months ended June 30, 2020, compared to 55.9 million for the six months ended June 30, 2019. Adjusted operating income, a non-GAAP measure, was 66.2 million for the six months ended June 30, 2020, compared to 71.7 million for the six months ended June 30, 2019. Cash flow from operations was 60.4 million in the six months ended June 30, 2020, compared to 72.4 million in the six months ended June 30, 2019. During the six months ended June 30, 2020, the Company repurchased 337,007 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors, for a total investment of 25.0 million. However, as noted above, the Companys share repurchase program is currently suspended.2020 GUIDANCEManhattan Associates provides the following updated revenue, operating margin and diluted earnings per share guidance for the full year 2020: Guidance Range - 2020 Full Year s in millions, except operating margin and EPS Range Growth Range Total revenue - current guidance 554 570 -10 -8 Total revenue - previous guidance 541 565 -12 -9 Operating Margin: GAAP operating margin - current guidance17.3 17.7 Equity-based compensation5.6 5.4 Adjusted operating margin1 - current guidance22.9 23.1 GAAP operating margin - previous guidance17.5 17.9 Equity-based compensation5.4 5.2 Adjusted operating margin1 - previous guidance22.9 23.1 Diluted earnings per share EPS: GAAP EPS - current guidance 1.17 1.23 -11 -7 Equity-based compensation, net of tax 0.42 0.42 Excess tax benefit on stock vesting 0.06 0.06 Adjusted EPS1 - current guidance 1.53 1.59 -12 -9 GAAP EPS - previous guidance 1.16 1.24 -12 -6 Equity-based compensation, net of tax 0.40 0.40 Excess tax benefit on stock vesting 0.06 0.06 Adjusted EPS1 - previous guidance 1.50 1.58 -14 -9 1 Adjusted operating margin and adjusted EPS are non-GAAP measures that exclude the impact of equity-based compensation and acquisition-related costs, and the related income tax effects of these items if applicable. Manhattan Associates currently intends to publish in each quarterly earnings release certain expectations with respect to future financial performance. Those statements, including the guidance provided above, are forward looking. Actual results may differ materially. See our cautionary note regarding forward-looking statements below. We note in particular that the severity, duration and ultimate impact of the COVID-19 pandemic are difficult to predict at this time. In addition, those statements do not reflect the potential impact of mergers, acquisitions or other business combinations that may be completed after the date of the release.Manhattan Associates will make its earnings release and published expectations available on the investor relations section of the Manhattan Associates website at ir.manh.com. Following publication of this earnings release, any expectations with respect to future financial performance contained in this release, including the guidance above, should be considered historical only, and Manhattan Associates disclaims any obligation to update them.CONFERENCE CALLThe Companys conference call regarding its second quarter 2020 financial results will be held today, July 23, 2020, at 4:30 p.m. Eastern Time. The Company will also discuss its business and expectations for the year and next quarter in additional detail during the call. We invite investors to a live webcast of the conference call through the Investor Relations section of the Manhattan Associates website at ir.manh.com. To listen to the live webcast, please go to the website at least 15 minutes before the call to download and install any necessary audio software.Those who cannot listen to the live broadcast may access a replay shortly after the call by dialing 1.855.859.2056 in the U.S. and Canada, or 1.404.537.3406 outside the U.S., and entering the conference identification number 9264558 or via the web at ir.manh.com. The phone replay will be available for two weeks after the call, and the Internet webcast will be available until Manhattan Associates third quarter 2020 earnings release.GAAP VERSUS NON-GAAP PRESENTATIONThe Company provides adjusted operating income and margin, adjusted income tax provision, adjusted net income and adjusted diluted earnings per share in this press release as additional information regarding the Companys historical and projected operating results. These measures are not in accordance with, or alternatives to, GAAP, and may be different from similarly titled non-GAAP measures used by other companies. The Company believes the presentation of these non-GAAP financial measures facilitates investors ability to understand and compare the Companys results and guidance, because the measures provide supplemental information in evaluating the operating results of its business, as distinct from results that include items not indicative of ongoing operating results, and because the Company believes its peers typically publish similar non-GAAP measures. This release should be read in conjunction with the Companys Form 8-K earnings release filing for the three and six months ended June 30, 2020. 