Logility Supply Chain Solutions, Inc. - LGTY STOCK NEWS

Logility, a leading AI-first supply chain management software provider, has announced its achievements for 2024 and unveiled plans for 2025. The company received significant industry recognition, including being named a Leader in the 2024 Gartner® Magic Quadrant™ for Supply Chain Planning Solutions and achieving a 94% recommendation rating in Gartner Peer Insights™.

Key 2024 innovations included the launch of Logility Expert Advisor (LEA), a generative AI software, the Decision Command Center for optimized supply chain processes, and Dynamic Inventory Modeling. The company's virtual summit attracted over 700 attendees, showcasing successful implementations at Great Lakes Cheese and DENSO.

Looking ahead to 2025, Logility plans to introduce Intelligent Order Response for automated order fulfillment and Continuous Network Optimization for real-time supply chain adjustments. The company will host the Vision25 Executive Forum on March 6, 2025, featuring senior supply chain executives and international keynote speakers.

Logility Supply Chain Solutions (NASDAQ: LGTY) has announced important tax information regarding its 2024 distributions. The company has determined that certain distributions made during 2024 will be classified as return of capital (non-dividend) distributions, which will impact shareholders' tax basis in their shares. To help investors with tax reporting requirements, the company has posted Form 8937 (Report of Organizational Actions Affecting Basis of Securities) in the Investor Relations section of their website. Shareholders are advised to consult their tax advisors about potential impacts on their 2024 taxes.

Logility Supply Chain Solutions (NASDAQ: LGTY) has addressed recent market rumors and media reports.

The company reiterated its policy of not commenting on market rumors or speculation.

Logility Supply Chain Solutions (NASDAQ: LGTY) issued a statement in response to a letter from 2717 Partners, LP dated December 9, 2024. The Company emphasized its commitment to executing its business strategy and delivering industry-leading supply chain planning services. Logility's Board of Directors and management routinely review business and strategic directions to ensure they are on the best path to enhance shareholder value.

2717 Partners, a significant shareholder of Logility Supply Chain Solutions (NASDAQ: LGTY), has sent a letter to the company's Board calling for exploration of strategic alternatives, including a potential sale. The letter highlights Logility's persistent underperformance compared to peers, with negative returns of -0.8%, -55.4%, and -81.5% over 1-, 2-, and 3-year horizons.

The investor criticizes Logility's operational efficiency, noting that less than 10% of the sales force hit quota in FY2024. Despite positive aspects like ~36% CAGR subscription revenue growth from FY2018 to FY2024 and being ranked as a Leader in Gartner's Magic Quadrant, 2717 Partners believes the company would perform better as a private entity, suggesting potential Adjusted EBITDA margins of 30-40% under private ownership.

Logility has announced two new AI-native capabilities to enhance supply chain execution. The first, Intelligent Order Response, automates order allocation and optimization, addressing demand-supply imbalances. The second, an enhancement to Continuous Network Optimization, offers AI-powered recommendations for supply chain adjustments. Both features will be available in Spring 2025. These solutions aim to improve business outcomes, reduce logistics fees, and enhance customer satisfaction by eliminating manual processes and rigid allocation rules. Logility's AI-first approach empowers decision-makers with accelerated insights and prescriptive decision recommendations.

Logility (NASDAQ: LGTY) reported Q2 FY2025 results with subscription fees growing 9% to $14.5 million. Total revenues decreased 2% to $25.3 million due to lower services and maintenance revenue. Operating earnings declined 16% to $1.0 million. The company maintained its recurring revenue guidance of $87.0-89.0 million and Adjusted EBITDA guidance of $15.0-16.4 million, but revised total revenue guidance to $101.0-105.0 million due to project delays. GAAP net earnings from continuing operations were $1.7 million ($0.05 per share). The company completed a reclassification of common stock, eliminating Class B shares, and maintains a strong financial position with $84.2 million in cash and investments.

Logility (NASDAQ: LGTY), an AI-first supply chain planning software company, has announced a quarterly dividend of $0.11 per share. The dividend will be paid to common shareholders who are on record as of February 7, 2025, with the payment scheduled for February 21, 2025.

Logility Supply Chain Solutions (NASDAQ: LGTY) has announced it will release its second quarter fiscal year 2025 financial results after U.S. market close on Thursday, November 21, 2024. The company will host a conference call at 5:00 pm ET on the same day to discuss results with the investment community. The earnings call will be accessible via webcast through the company's investor relations webpage, with a replay option available.