Updated from 4:28 p.m. EST

Manugistics ( MANU) reported fourth-quarter results that fell short of expectations, with its top line declining 12% driven by a drop in lower service revenue.

After hours, shares of Manugistics were recently down 82 cents, or 12%, to $5.98. The stock climbed 47 cents, or 7.4%, to $6.80 in Wednesday's regular session in advance of the company's earnings.

Under generally accepted accounting principles, Rockville, Md.-based Manugistics reported a net loss of $56.6 million, or 73 cents a share, in the fourth quarter, which ended Feb. 29. That compared to a net loss of $114.4 million, or $1.59 per share, in the same period a year earlier. This year's quarterly results included a $43.4 million charge, or 56 cents a share, for converting debt to common stock; last year's results included a $96.3 million, or $1.38 a share, noncash goodwill impairment charge.

Excluding charges, the supply chain software maker earned pro forma net income of $273,000, or breakeven on a per-share basis, compared to a pro forma net loss of $7.6 million, or 11 cents a share, a year earlier.

Revenue dropped 12% to $57.8 million from $65.5 million a year earlier, driven largely by a decrease in low-margin service revenue. Service revenue fell 33% from a year ago to $15 million. Software license revenue edged up to $19 million from $18.2 million a year ago.

Wall Street analysts expected Manugistics to earn pro forma net income of 3 cents a share on $62 million in revenue in the fourth quarter, according to Thomson First Call.

Looking forward, Manugistics said in a press release it expects pro forma net income to improve sequentially on slightly higher total revenue. Analyst estimates were calling for revenue of $63.4 million and earnings of 3 cents a share in the first quarter.

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