Starbucks entering yogurt business in deal with Dannon
Seattle — Starbucks Coffee Company is entering the yogurt business. The company announced it has entered into a strategic agreement with the makers of Dannon to offer a jointly created and developed selection of specialty yogurt products in participating Starbucks stores and in grocery channels.
The line, branded as Evolution Fresh, Inspired by Dannon, will feature ready-to-eat Parfait Greek yogurt products co-created by Starbucks and Danone for exclusive distribution in the U.S. Starbucks will offer the products through its stores in spring 2014, and Danone (makers of Dannon) in grocery channels in 2015.
Distribution is planned to be extended to include targeted markets around the world in a second phase that builds upon the success of the U.S. initiative.
“Starbucks is committed to evolving and enhancing our customer experience with innovative and wholesome food offerings. Today’s announcement underscores this commitment through the transformation of our existing yogurt offerings and our multi-year agreement with Danone,” said Howard Schultz, Starbucks chairman, president and CEO.
iPhone sales still strong, but tablets tumble and profits decline
Sales of 31.2 million iPhones and 14.6 million iPads during third quarter ended June 29 enabled Apple to generate sales of $35.3 billion, but lower prices led to gross margin contraction and a nearly $2 billion decline in profits.
Apple’s quarterly revenue was essentially flat with the prior year while net income of $6.9 billion, or $7.47 a share, was well below the prior year’s profit total of $8.8 billion or $9.32 a share. Gross margins also declined to 36.9% from 42.8%.
Sales of the venerable iPhone totaled 31.2 million units in the quarter, well above last year’s 26 million, while iPad sales declined to 14.6 million units from 17 million units. Sales of Mac computers also declined to 3.8 million from 4 million last year.
“We are especially proud of our record June quarter iPhone sales of more than 31 million and the strong growth in revenue from iTunes, Software and Services,” said Tim Cook, Apple’s CEO. “We are really excited about the upcoming releases of iOS 7 and OS X Mavericks, and we are laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014.”
The company said it generated $7.8 billion in cash flow from operations during the quarter returned $18.8 billion in cash to shareholders through dividends and share repurchases. In conjunction with the release of its results Apple announced a $3.05 a share dividend.
During the current third quarter, Applie is expecting sales to range from $34 billion to $37 billion with gross margins holding steady in the 36% to 37% range.
Manhattan Associates posts ‘strong’ Q2
ATLANTA — Leading supply chain commerce solutions provider Manhattan Associates reported total revenue of $102.5 million in the second quarter of 2013, compared to $93.6 million in the second quarter of 2012.
License revenue was $16.1 million in the second quarter of 2013, compared to $15.3 million in the second quarter of 2012.
The company had record second quarter 2013 diluted earnings per share of $0.96 — adjusted to exclude the impact of acquisition-related costs and equity-based compensation all net of income tax effects — compared to $0.76 in the second quarter of 2012, on license revenue of $16.1 million and record second quarter total revenue of $102.5 million.
"We are very pleased to post another strong quarter of financial results and operating metrics, and while it remains somewhat difficult to predict the effect of the tepid global economy, we are optimistic about our outlook for the balance of 2013 and beyond," said Eddie Capel, Manhattan Associates president and CEO. "Our competitive win rates remain strong and we continue to invest in our supply chain commerce vision, leveraging our common technology platform to help industry leaders get closer to their customers and adapt in the new omnichannel world. We are also quite pleased with demand for our omnichannel solutions and continue to deliver innovative solutions to extend our market leadership."
The company reported adjusted diluted earnings per share of $1.70 for the six months ended June 30, 2013, compared to $1.36 for the six months ended June 30, 2012. Diluted earnings per share for the six months ended June 30, 2013 was $1.57, compared to $1.25 for the six months ended June 30, 2012.
Consolidated revenue for the six months ended June 30, 2013 was $199.1 million, compared to $185 million for the six months ended June 30, 2012. License revenue was $30.4 million for the six months ended June 30, 2013, compared to $30.9 million for the six months ended June 30, 2012.
The company signed four contracts of $1 million or more in recognized license revenue during the second quarter of 2013, resulting in a total of seven contracts of $1 million or more in recognized license revenue for the six months ended June 30.
It completed software license agreements with new customers, including ERAM, Lilly Pulitzer, MSC Industrial Direct, PriceSmart, Queensland Health and Team Hardinger. Additionally, it expanded relationships with existing customers, including Alliant Techsystems, American Eagle Outfitters, Bed Bath & Beyond, Belk, B & R Enclosures, Cabela’s, Celadon, COI DE Tampico, Cotton On Group, DHL Supply Chain, Exel, Fasteners for Retail, Guess, Holiday Classic, Legacy Supply Chain, Logix FZCO, Michael Kors, May’s Zona Libra, Northern Safety, Panalpina, Pearson Education, Pro Silver, PUMA, Shanghai Pharmaceutical, the Harvard Drug Group, the Jones Group, Tory Burch and United Distributors.