Manhattan Associates Reports Record Third Quarter 2012 Performance

Manhattan Associates Reports Record Third Quarter 2012 Performance

Company Raises Full-Year EPS Guidance

ATLANTA, Oct. 16, 2012 (GLOBE NEWSWIRE) -- Leading supply chain optimization
provider Manhattan Associates, Inc. (Nasdaq:MANH) today reported record third
quarter 2012 non-GAAP adjusted diluted earnings per share of $0.75 compared to
$0.67 in the third quarter 2011, on license revenue of $16.2 million and
record total revenue of $95.8 million. GAAP diluted earnings per share was
$0.69 compared to $0.70 in the prior year third quarter. 

Manhattan Associates CEO Pete Sinisgalli commented, "We're pleased with our
third quarter performance.The financial results were good, our competitive
win rate was strong and our substantial investments in research and
development position us well for the future."

THIRD QUARTER 2012 FINANCIAL SUMMARY:

  *Adjusted diluted earnings per share, a non-GAAP measure, was $0.75 in the
    third quarter of 2012, compared to $0.67 in the third quarter of 2011.
    
  *GAAP diluted earnings per share was $0.69 in the third quarter of 2012,
    compared to $0.70 in the third quarter of 2011.Third quarter results for
    2011 included a $0.12 per share benefit for the recovery of a previously
    impaired auction rate security investment.
    
  *Consolidated total revenue was $95.8 million in the third quarter of 2012,
    compared to $85.6 million in the third quarter of 2011.License revenue
    was $16.2 million in the third quarter of 2012, compared to $13.6 million
    in the third quarter of 2011.
    
  *Adjusted operating income, a non-GAAP measure, was $23.8 million in the
    third quarter of 2012, compared to $19.7 million in the third quarter of
    2011.
    
  *GAAP operating income was $21.7 million in the third quarter of 2012,
    compared to $19.4 million in the third quarter of 2011.Results for the
    third quarter of 2011 included a $2.5 million recovery of a previously
    impaired auction rate security investment.
    
  *Cash flow from operations was $17.5 million in the third quarter of 2012,
    compared to $16.9 million in the third quarter of 2011.Days Sales
    Outstanding was 70 days at September 30, 2012, compared to 63 days at June
    30, 2012.
    
  *Cash and investments on-hand was $106.8 million at September 30, 2012,
    compared to $100.9 million at June 30, 2012.
    
  *For the three months ended September 30, 2012, the Company repurchased
    418,932 shares of Manhattan Associates common stock under the share
    repurchase program authorized by the Board of Directors, for a total
    investment of $21.2 million.In October 2012, the Board of Directors
    approved raising the Company's remaining share repurchase authority to an
    aggregate of $50.0 million of the Company's outstanding common stock.

NINE MONTH 2012 FINANCIAL SUMMARY:

  *Adjusted diluted earnings per share, a non-GAAP measure, was $2.12 for the
    nine months ended September 30, 2012, compared to $1.72 for the nine
    months ended September 30, 2011.
    
  *GAAP diluted earnings per share for the nine months ended September 30,
    2012 was $1.93, compared to $1.59 for the nine months ended September 30,
    2011.Results for the nine months ended September 30, 2011 included a
    $0.12 per share benefit for the recovery of a previously impaired auction
    rate security investment.
    
  *Consolidated revenue for the nine months ended September 30, 2012 was
    $280.9 million, compared to $245.7 million for the nine months ended
    September 30, 2011. License revenue was $47.1 million for the nine months
    ended September 30, 2012, compared to $37.7 million in the nine months
    ended September 30, 2011.
    
  *Adjusted operating income, a non-GAAP measure, was $66.8 million for the
    nine months ended September 30, 2012, compared to $51.1 million for the
    nine months ended September 30, 2011.
    
  *GAAP operating income was $61.0 million for the nine months ended
    September 30, 2012, compared to $45.2 million for the nine months ended
    September 30, 2011. Results for the nine months ended September 30, 2011
    included a $2.5 million recovery of a previously impaired auction rate
    security investment.
    
  *For the nine months ended September 30, 2012, the Company repurchased
    1,418,205 shares of Manhattan Associates common stock under the share
    repurchase program authorized by the Board of Directors, for a total
    investment of $68.5 million.

SALES ACHIEVEMENTS:

  *Closing two contracts of $1.0 million or more in recognized license
    revenue during the third quarter of 2012.
    
  *Completing software license wins with new customers such as: Happigo Home
    Shipping Co., Integracolor and TwinMed.
    
  *Expanding relationships with existing customers such as: ACCO Brands,
    Alliance Healthcare, American Eagle Outfitters, AMSCAN, ATB Market, Better
    Life Commercial Chain, Bollore Logistics, Bulova Corporation, Cabela's,
    Chanel, Chico's Retail Services, Cotton On Group Services, Dalepak, Design
    Within Reach, Fashion Biz, Five Below, Hayneedle, Keystone Distribution
    UK, Kuehne & Nagel, Nalsani SA, Nike, Inc., National Logistics Services,
    Nature's Best, RockTenn, Rocky Brands, SF Express, Southern Wine & Spirits
    of America, Super Cheap Auto, The Beistle Company and Wolverine Worldwide.

2012 GUIDANCE

Manhattan Associates provides the following revenue and diluted earnings per
share guidance for the full year 2012:

                                                                     
                                     Guidance Range - 2012 Full year
($'s in millions, except EPS)         $ Range        % Growth range
                                                          
Total revenue - current guidance      $370    $375   12%      14%
                                                          
Total revenue - previous guidance     $365    $375   11%      14%
                                                          
Diluted earnings per share (EPS):                          
Adjusted EPS^(1) - current guidance  $2.75   $2.80  19%      21%
GAAP EPS - current guidance           $2.49   $2.54  19%      22%
                                                          
Adjusted EPS^(1) - previous guidance $2.65   $2.75  14%      19%
GAAP EPS - previous guidance          $2.37   $2.47  13%      18%
                                                          
^(1) Adjusted EPS is Non-GAAP                                            

Manhattan Associates currently intends to publish, in each quarterly earnings
release, certain expectations with respect to future financial performance.
These statements are forward-looking. Actual results may differ materially,
especially in the current uncertain economic environment.These statements do
not reflect the potential impact of mergers, acquisitions or other business
combinations that may be completed after the date of this release.

Manhattan Associates will make its earnings release and published expectations
available on its website (www.manh.com). Beginning December 15, 2012,
Manhattan Associates will observe a "Quiet Period" during which Manhattan
Associates and its representatives will not comment concerning previously
published financial expectations.Prior to the start of the Quiet Period, the
public can continue to rely on the expectations published in this 2012
Guidance section as being Manhattan Associates' current expectation on matters
covered, unless Manhattan Associates publishes a notice stating otherwise.
During the Quiet Period, previously published expectations should be
considered historical only, speaking only as of or prior to the Quiet Period,
and Manhattan Associates disclaims any obligation to update any previously
published financial expectations during the Quiet Period. The Quiet Period
will extend until publication of Manhattan Associates' next quarterly earnings
release, currently scheduled for the fourth full week of January 2013.

CONFERENCE CALL

The Company's conference call regarding its third quarter financial results
will be held at 4:30 p.m. Eastern Time on Tuesday October 16, 2012. Investors
are invited to listen to a live webcast of the conference call through the
investor relations section of Manhattan Associates' website at www.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. For
those who cannot listen to the live broadcast, a replay can be accessed
shortly after the call by dialing +1.888.471.9891 in the U.S. and Canada, or
+1.973.200.3379 outside the U.S., and entering the conference identification
number 32249193 or via the web at www.manh.com. The phone replay will be
available for two weeks after the call, and the Internet webcast will be
available until Manhattan Associates' fourth quarter 2012 earnings release.

GAAP VERSUS NON-GAAP PRESENTATION

The Company provides adjusted operating income, adjusted net income and
adjusted earnings per share in this press release as additional information
regarding the Company's operating results. These measures are not in
accordance with – or an alternative to – GAAP, and may be different from
non-GAAP operating income, non-GAAP net income and non-GAAP earnings per share
measures used by other companies. The Company believes that the presentation
of these non-GAAP financial measures facilitates investors' understanding of
its historical operating trends, because it provides important supplemental
measurement information in evaluating the operating results of its business,
as distinct from results that include items that are not indicative of ongoing
operating results. The Company consequently believes that the presentation of
these non-GAAP financial measures provides investors with useful insight into
its profitability.This release should be read in conjunction with the
Company's Form 8-K earnings release filing for the quarter ended September 30,
2012.

The non-GAAP adjusted operating income, adjusted net income and adjusted
earnings per share exclude the impact of acquisition-related costs and the
amortization thereof; equity-based compensation; and assets impairment charges
and related reversals – all net of income tax effects and unusual tax
adjustments. Reconciliations of the Company's GAAP financial measures to
non-GAAP adjustments are included in the supplemental information attached to
this release.

ABOUT MANHATTAN ASSOCIATES, INC.

Manhattan Associates continues to deliver on its 22-year heritage of providing
global supply chain excellence to more than 1,200 customers worldwide that
consider supply chain optimization core to their strategic market leadership.
The Company's supply chain innovations include: Manhattan SCOPE®, a portfolio
of software solutions and technology that leverages a Supply Chain Process
Platform to help organizations optimize their supply chains from planning
through execution; Manhattan SCALE™, a portfolio of distribution management
and transportation management solutions built on Microsoft .NET technology;
and Manhattan Carrier™, a suite of supply chain solutions specifically
addressing the needs of the motor carrier industry. For more information,
please visit www.manh.com.

This press release contains "forward-looking statements" relating to Manhattan
Associates, Inc.Forward-looking statements in this press release include the
information set forth under "2012 Guidance."Prospective investors are
cautioned that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that actual
results may differ materially from those contemplated by such forward-looking
statements.Among the important factors that could cause actual results to
differ materially from those indicated by such forward-looking statements are:
uncertainty about the global economy; delays in product development;
competitive pressures; software errors; and the additional risk factors set
forth in Item 1A of the Company's Annual Report on Form 10-K for the year
ended December 31, 2011. Manhattan Associates undertakes no obligation to
update or revise forward-looking statements to reflect changed assumptions,
the occurrence of unanticipated events or changes in future operating results.

MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
                                                                 
                                      Three Months Ended  Nine Months Ended
                                       September 30,       September 30,
                                      2012      2011      2012      2011
                                      (unaudited)
Revenue:                                                          
Software license                      $16,164 $13,565 $47,096 $37,674
Services                              71,886    63,594    211,578   183,446
Hardware and other                    7,791     8,443     22,215    24,594
Total revenue                         95,841    85,602    280,889   245,714
Costs and expenses:                                              
Cost of license                       2,086     1,196     5,351    4,259
Cost of services                      32,614    28,054    94,646   80,474
Cost of hardware and other            6,428     6,695     18,416   19,452
Research and development              11,400    10,877    33,753   31,936
Sales and marketing                   10,999    10,865    34,817   33,774
General and administrative            9,258     9,342     28,806   27,256
Depreciation and amortization         1,379     1,698     4,141    5,922
Recovery of previously impaired        --       (2,519)  --       (2,519)
investment
Total costs and expenses              74,164    66,208    219,930  200,554
Operating income                       21,677   19,394   60,959   45,160
Other (expense) income, net            (247)    862      431      1,214
Income before income taxes             21,430    20,256    61,390   46,374
Income tax provision                   7,621     5,379     22,007   11,992
Net income                             $13,809 $14,877 $39,383 $34,382
                                                                 
Basic earnings per share               $0.71   $0.74   $1.99   $1.67
Diluted earnings per share             $0.69   $0.70   $1.93   $1.59
                                                                 
Weighted average number of shares:                                
Basic                                  19,568   20,156   19,745   20,623
Diluted                                20,130   21,125   20,372   21,656


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Reconciliation of Selected GAAP to Non-GAAP Measures
(in thousands, except per share amounts)
                                                             
                                                             
                     Three Months Ended September Nine Months Ended September
                      30,                          30,
                     2012           2011          2012          2011
                                                             
GAAP Operating income $21,677      $19,394     $60,959     $45,160
Equity-based          2,158         2,503        5,795        7,317
compensation ^(a)
Purchase amortization 2             293          5            1,170
^(b)
Recovery of
previously impaired   --            (2,519)      --           (2,519)
investment ^(c)
Adjusted operating    $23,837      $19,671     $66,759     $51,128
income (Non-GAAP)
                                                             
                                                             
GAAP Income tax       $7,621       $5,379      $22,007     $11,992
provision
Equity-based          777           838          2,086        2,451
compensation ^(a)
Purchase amortization 1             98           2            392
^(b)
Unusual tax           --           115          --          227
adjustments ^(d)
Adjusted income tax   $8,399       $6,430      $24,095     $15,062
provision (Non-GAAP)
                                                             
                                                             
GAAP Net income       $13,809      $14,877     $39,383     $34,382
Equity-based          1,381         1,665        3,709        4,866
compensation ^(a)
Purchase amortization 1             195          3            778
^(b)
Recovery of
previously impaired   --            (2,519)      --           (2,519)
investment ^(c)
Unusual tax           --            (115)        --           (227)
adjustments ^(d)
Adjusted net income   $15,191      $14,103     $43,095     $37,280
(Non-GAAP)
                                                             
                                                             
GAAP Diluted EPS      $0.69        $0.70       $1.93       $1.59
Equity-based          0.07          0.08         0.18         0.22
compensation ^(a)
Purchase amortization --            0.01         --           0.04
^(b)
Recovery of
previously impaired   --            (0.12)       --           (0.12)
investment ^(c)
Unusual tax           --            (0.01)       --           (0.01)
adjustments ^(d)
Adjusted diluted EPS  $0.75        $0.67       $2.12       $1.72
(Non-GAAP)
                                                             
Fully diluted shares  20,130        21,125       20,372       21,656
                                                             
                                                             
(a) To be consistent with other companies in the software industry, we report
adjusted results excluding all equity-based compensation.The equity-based
compensation is included in the following GAAP operating expense lines for the
three and nine months ended September 30, 2012 and 2011:

                     Three Months Ended September Nine Months Ended September
                      30,                          30,
                     2012           2011          2012          2011
                                                             
Cost of services      $305         $374        $490        $1,077
Research and          435           415          1,134        1,173
development
Sales and marketing   517           585          1,667        1,733
General and           901           1,129        2,504        3,334
administrative
Total equity-based    $2,158       $2,503      $5,795      $7,317
compensation
                                                             
(b) Adjustments represent purchased intangibles amortization from prior
acquisitions.Such amortization is commonly excluded from GAAP net income by
companies in our industry and we therefore exclude these amortization costs to
provide more relevant and meaningful comparisons of our operating results to
that of our competitors.
                                                             
(c) During the quarter ended September 30, 2008, we recorded an impairment
charge of $3.5 million on an investment in an auction rate security.We
reduced the carrying value to zero due to credit downgrades of the underlying
issuer and the bond insurer as well as increasing publicly reported exposure
to bankruptcy risk by the issuer.However, during the quarter ended September
30, 2011, we were able to sell the auction rate security and recovered over
70%, or $2.5 million, of our original investment.We previously excluded the
asset impairment charge recorded in 2008 to write down the value of the
auction rate security because we typically invest our treasury funds in cash,
cash equivalents or other liquid investments, not illiquid, risky securities.
We believed the write-down in value of the auction rate security was due to
unusual changes in the characteristics of the auction rate security since our
initial investment in it, including failed auctions and default risk for a
municipal obligor.Consistent with our prior exclusion of the charge, we have
excluded the reversal of the charge from adjusted non-GAAP results because it
is not indicative of ongoing operating performance.
                                                             
(d) For the three and nine months ended September 30, 2011, the adjustments
represent tax benefits from disqualifying dispositions of incentive stock
options that were previously expensed.As discussed above, we excluded
equity-based compensation from adjusted non-GAAP results to be consistent with
other companies in the software industry.Therefore, we also excluded the
related tax benefit generated upon their disposition.


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
                                                           
                                                           
                                         September 30, 2012 December 31, 2011
                                         (unaudited)        
ASSETS                                                      
Current Assets:                                             
Cash and cash equivalents                 $99,090          $92,180
Short term investments                    7,715             6,079
Accounts receivable, net of allowance of
$5,524 and $4,816 in 2012 and 2011,       73,241            56,264
respectively
Deferred income taxes                     7,835             7,599
Income taxes receivable                   --               4,859
Prepaid expenses and other current assets 7,465             7,533
Total current assets                      195,346           174,514
                                                           
Property and equipment, net               13,681            13,321
Long-term investments                     --               855
Goodwill, net                             62,260            62,261
Deferred income taxes                     2,668             5,696
Other assets                              1,874             2,953
Total assets                              $275,829         $259,600
                                                           
                                                           
LIABILITIES AND SHAREHOLDERS' EQUITY                        
                                                           
Current liabilities:                                        
Accounts payable                          $8,069           $8,090
Accrued compensation and benefits         16,857            16,503
Accrued and other liabilities             12,733            13,648
Deferred revenue                          52,573            49,882
Income tax payable                        7,066             --
Total current liabilities                 97,298            88,123
                                                           
Other non-current liabilities             8,971             9,397
                                                           
Shareholders' equity:                                       
Preferred stock, no par value; 20,000,000
shares authorized, no shares issued or    --               --
outstanding in 2012 or 2011
Common stock, $.01 par value; 100,000,000
shares authorized; 19,905,903 and
20,415,946 shares issued and outstanding  199               204
at September 30, 2012 and December 31,
2011, respectively
Additional paid-in capital                --               --
Retained earnings                         173,248           166,989
Accumulated other comprehensive loss      (3,887)           (5,113)
Total shareholders' equity                169,560           162,080
Total liabilities and shareholders'       $275,829         $259,600
equity


MANHATTAN ASSOCIATES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements ofCash Flows
(in thousands)
                                                                
                                              Nine Months Ended September 30,
                                              2012               2011
                                              (unaudited)
Operating activities:                                            
Net income                                     $39,383          $34,382
Adjustments to reconcile net income to net cash provided by       
operating activities:
Depreciation and amortization                  4,141             5,922
Recovery of previously impaired investment     --               (2,519)
Equity-based compensation                      5,795             7,317
(Gain) loss on disposal of equipment           (46)              22
Tax benefit of stock awards exercised/vested  7,034             3,345
Excess tax benefits from equity-based          (5,726)           (1,416)
compensation
Deferred income taxes                          2,807             (1,821)
Unrealized foreign currency loss (gain)        411               (513)
Changes in operating assets and liabilities:                     
Accounts receivable, net                       (16,772)          (9,370)
Other assets                                   1,215             (1,546)
Accounts payable, accrued and other            (1,595)           (3,325)
liabilities
Income taxes                                   12,266            6,250
Deferred revenue                               2,494             4,267
Net cash provided by operating activities      51,407            40,995
                                                                
Investing activities:                                            
Purchase of property and equipment             (4,336)           (3,672)
Net (purchases) maturities of investments     (236)             465
Net cash used in investing activities          (4,572)           (3,207)
                                                                
Financing activities:                                            
Purchase of common stock                       (71,667)          (95,569)
Proceeds from issuance of common stock from    25,708            30,265
options exercised
Excess tax benefits from equity-based          5,726             1,416
compensation
Net cash used in financing activities          (40,233)          (63,888)
                                                                
Foreign currency impact on cash                308               (491)
                                                                
Net change in cash and cash equivalents        6,910             (26,591)
Cash and cash equivalents at beginning of      92,180            120,744
period
Cash and cash equivalents at end of period     $99,090          $94,153


MANHATTAN ASSOCIATES, INC.
SUPPLEMENTAL INFORMATION
                                                                                            
                                                                                            
1. GAAP and Adjusted earnings (loss) per share by quarter are as follows:

                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
GAAP Diluted EPS   $0.32   $0.57   $0.70   $0.50   $2.09    $0.55   $0.70    $0.69   $1.93
Adjustments to                                                                               
GAAP:
Equity-based       0.07     0.07     0.08     0.09     0.32      0.05     0.06      0.07     0.18
compensation
Purchase           0.01     0.01     0.01     --      0.04      --      --       --      --
amortization
Recovery of
previously         --      --      (0.12)   --      (0.12)    --      --       --      --
impaired
investment
Unusual tax        --      --      (0.01)   --      (0.01)    --      --       --      --
adjustments
Adjusted Diluted   $0.41   $0.65   $0.67   $0.60   $2.32    $0.60   $0.76    $0.75   $2.12
EPS
                                                                                            
                                                                                            
2. Revenues and operating income (loss) by reportable segment are as follows (in thousands):
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
Revenue:                                                                                     
Americas           $60,185 $72,634 $70,663 $69,377 $272,859 $73,195 $77,094  $79,657 $229,946
EMEA               8,336    11,075   10,041   8,843    38,295    12,407   12,334    10,589   35,330
APAC               3,189    4,693    4,898    5,319    18,099    5,879    4,139     5,595    15,613
                  $71,710 $88,402 $85,602 $83,539 $329,253 $91,481 $93,567  $95,841 $280,889
                                                                                            
GAAP Operating                                                                               
Income (Loss):
Americas           $7,087  $15,749 $17,183 $13,531 $53,550  $13,685 $18,130  $17,718 $49,533
EMEA               909      1,963    1,334    1,033    5,239     2,580    2,944     2,707    8,231
APAC               (443)    501      877      1,639    2,574     1,675    268       1,252    3,195
                  $7,553  $18,213 $19,394 $16,203 $61,363  $17,940 $21,342  $21,677 $60,959
                                                                                            
Adjustments                                                                                  
(pre-tax):
Americas:                                                                                    
Equity-based       $2,409  $2,405  $2,503  $3,055  $10,372  $1,660  $1,977   $2,158  $5,795
compensation
Purchase           439      438      293      2        1,172     2        1         2        5
amortization
Recovery of
previously         --      --      (2,519)  --      (2,519)   --      --       --       --
impaired
investment
                  $2,848  $2,843  $277    $3,057  $9,025   $1,662  $1,978   $2,160  $5,800
                                                                                            
Adjusted non-GAAP
Operating Income                                                                             
(Loss):
Americas           $9,935  $18,592 $17,460 $16,588 $62,575  $15,347 $20,108  $19,878 $55,333
EMEA               909      1,963    1,334    1,033    5,239     2,580    2,944     2,707    8,231
APAC               (443)    501      877      1,639    2,574     1,675    268       1,252    3,195
                  $10,401 $21,056 $19,671 $19,260 $70,388  $19,602 $23,320  $23,837 $66,759
                                                                                            
                                                                                            
3. Our services revenue consists of fees generated from professional services and customer support and software
enhancements related to our software products as follows (in thousands):
                                                                                            
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
Professional       $35,184 $42,150 $41,403 $38,057 $156,794 $46,621 $45,497  $47,082 $139,200
services
Customer support
and software       20,894   21,624   22,191   22,555   87,264    23,749   23,825    24,804   72,378
enhancements
Total services     $56,078 $63,774 $63,594 $60,612 $244,058 $70,370 $69,322  $71,886 $211,578
revenue
                                                                                            
                                                                                            
4. Hardware and other revenue includes the following items (in thousands):
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
                                                                                            
Hardware revenue   $5,504  $5,540  $5,597  $3,895  $20,536  $3,054  $5,740   $4,234  $13,028
Billed travel      2,366    2,741    2,846    2,465    10,418    2,470    3,160     3,557    9,187
Total hardware and $7,870  $8,281  $8,443  $6,360  $30,954  $5,524  $8,900   $7,791  $22,215
other revenue
                                                                                            
                                                                                            
5. Impact of Currency Fluctuation
The following table reflects the increases (decreases) in the results of operations for each period
attributable to the change in foreign currency exchange rates from the prior period as well as foreign currency
gains (losses) included in other income, net for each period (in thousands):
                                                                                            
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
                                                                                            
Revenue            $282    $1,743  $1,140  $110    $3,275   $(136)  $(1,251) $(958)  $(2,345)
Costs and expenses 386      1,513    1,038    (668)    2,269     (848)    (2,067)   (1,845)  (4,760)
Operating income   (104)    230      102      778      1,006     712      816       887      2,415
Foreign currency
gains (losses) in  (207)    77       575      367      812       (370)    571       (564)    (363)
other income
                  $(311)  $307    $677    $1,145  $1,818   $342    $1,387   $323    $2,052
                                                                                            
                                                                                            
Manhattan Associates has a large research and development center in Bangalore, India.The following table
reflects the increases (decreases) in the financial results for each period attributable to changes in the
Indian Rupee exchange rate (in thousands):
                                                                                            
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
                                                                                            
Operating income   $(53)   $(82)   $(76)   $727    $516     $704    $1,193   $1,161  $3,058
Foreign currency
(losses) gains in  (112)    53       653      638      1,232     (144)    724       (500)    80
other income
Total impact of
changes in the     $(165)  $(29)   $577    $1,365  $1,748   $560    $1,917   $661    $3,138
Indian Rupee
                                                                                            
                                                                                            
6. Other income (expense) includes the following components (in thousands):
                                                                                            
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
                                                                                            
Interest income    $225    $269    $298    $280    $1,072   $264    $228     $278    $770
Foreign currency   (207)    77       575      367      812       (370)    571       (564)    (363)
(losses) gains
Other
non-operating      --       (12)     (11)     3        (20)      (18)     3         39       24
(expense) income
Total other income $18     $334    $862    $650    $1,864   $(124)  $802     $(247)  $431
(expense)
                                                                                            
                                                                                            
7. Total equity-based compensation is as follows (in thousands except per share amounts):
                                                                                            
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
                                                                                            
Stock options      $512    $487    $486    $518    $2,003   $120    $140     $138    $398
Restricted stock   1,897    1,918    2,017    2,537    8,369     1,540    1,837     2,020    5,397
Total equity-based 2,409    2,405    2,503    3,055    10,372    1,660    1,977     2,158    5,795
compensation
Income tax         807      806      838      1,075    3,526     598      711       777      2,086
provision
Net income         $1,602  $1,599  $1,665  $1,980  $6,846   $1,062  $1,266   $1,381  $3,709
Diluted earnings   $0.07   $0.07   $0.08   $0.09   $0.32    $0.05   $0.06    $0.07   $0.18
per share
                                                                                            
Diluted earnings
per share - stock  $0.02   $0.01   $0.02   $0.02   $0.06    $0.00   $--     $--    $0.01
options
Diluted earnings
per share -        $0.06   $0.06   $0.06   $0.08   $0.26    $0.05   $0.06    $0.07   $0.17
restricted stock
                                                                                            
                                                                                            
8. Capital expenditures are as follows (in thousands):
                                                                                            
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
                                                                                            
Capital            $1,338  $658    $1,676  $1,402  $5,074   $1,796  $1,454   $1,086  $4,336
expenditures
                                                                                            
                                                                                            
9. Stock Repurchase Activity (in thousands):
                                                                                            
                  2011                                               2012
                  1st Qtr   2nd Qtr   3rd Qtr   4th Qtr   Full Year  1st Qtr   2nd Qtr    3rd Qtr   YTD
                                                                                            
Shares purchased
under              826      1,079    845      857      3,607     653      346       419      1,418
publicly-announced
buy-back program
Shares withheld
for taxes due upon 65       4        4        5        78        66       3         5        74
vesting of
restricted stock
Total shares       891      1,083    849      862      3,685     719      349       424      1,492
purchased
                                                                                            
Total cash paid
for shares
purchased under    $25,621 $38,286 $29,414 $37,390 $130,711 $30,647 $16,616  $21,202 $68,465
publicly-announced
buy-back program
Total cash paid
for shares
withheld for taxes 1,960    129      159      185      2,433     2,840    132       230      3,202
due upon vesting
of restricted
stock
Total cash paid
for shares         $27,581 $38,415 $29,573 $37,575 $133,144 $33,487 $16,748  $21,432 $71,667
repurchased

CONTACT: Dennis Story
         Chief Financial Officer
         Manhattan Associates, Inc.
         678-597-7115
         dstory@manh.com
        
         Will Haraway
         Director, North America Public Relations
         Manhattan Associates, Inc.
         678-597-7466
         wharaway@manh.com
 
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