Manhattan Associates slashes 2Q guidance

ATLANTA - Manhattan Associates Inc., which provides software and services that help companies manage inventory and supplies, forecast Thursday it would post a wider-than-expected loss in the second quarter as the economic crisis continues to weigh on sales.

The news sent shares plunging $1.57, or 8.6 percent, to $16.70 in midday trading.

Manhattan Associates now predicts a loss of 5 cents to 9 cents per share for the quarter. Previously, its guidance ranged from a loss of 2 cents to a profit of 13 cents per share.

Excluding amortization, restructuring charges and stock options expenses, Manhattan Associates said it expects to earn 8 cents to 12 cents per share. Earlier guidance had called for a profit of 15 cents to 30 cents per share.

The new outlook falls far short of Wall Street's expectations. Analysts surveyed by Thomson Reuters are looking for adjusted earnings of 22 cents per share.

The company said it expects software license revenue of about $4 million, a 79 percent decrease from the year-ago quarter, when license revenue totaled $19.4 million.

"Customers and prospects continue to be reluctant to commit capital in the current environment," said CEO Peter Sinisgalli in a statement.

Manhattan Associates is set to report second-quarter earnings on July 21.

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