Bear Stearns upgraded Manugistics (MANU) to peer perform from underperform.
Analyst Edward Wolfe says he upgraded on better-than-expected cash flow, continued cost improvement, and expectations of better execution going forward. He says second-quarter results were in line, on the back of lower costs -- a bulk of which came from reduced R&D expenses.
Wolfe notes the company generated about $500,000 in cash during the quarter, vs. previous expectations of loss of more than $5 million. He says management expects to end fiscal 2004 (Feb.) with $145 million in cash, and notes the $59.7 million second-quarter revenue was slightly below the $61.8 million consensus.
Wolfe revised the 2 cents third-quarter loss estimate to breakeven, and narrowed the 10 cents fiscal 2004 loss per share estimate to a 6 cents loss per share.