Manhattan Associates Slashes 1Q Profit Outlook

ATLANTA (AP) — Manhattan Associates Inc., which provides software and services that help companies manage inventory and supplies, on Thursday lowered its first-quarter profit outlook below Wall Street expectations because of lower license revenue.

The company expects adjusted earnings between 5 cents and 7 cents per share, down sharply from prior expectations for adjusted earnings between 20 cents and 30 cents per share.

Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, expected earnings of 22 cents per share.

"While Manhattan Associates continues to extend its market advantages, on-going volatility in the global economy discouraged prospects and customers from committing capital to important initiatives to improve their supply chains," said Peter F. Sinisgalli, chief executive.

Manhattan Associates will release first-quarter results on April 21 and update its guidance for full-year 2009.

Shares of Manhattan Associates fell $1.80, or 10.5 percent, to $15.61 in morning trading.