Manhattan Associates Inc. has a market cap of $656.6 million; its shares were traded at around $29.04 with a P/E ratio of 26.4 and P/S ratio of 2.7. Manhattan Associates Inc. had an annual average earning growth of 6.1% over the past 10 years. GuruFocus rated Manhattan Associates Inc. the business predictability rank of 2-star.MANH is in the portfolios of Chuck Royce of Royce& Associates, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.
Highlight of Business Operations:Our license revenues in the first half of 2009 totaled $9.0 million, down 76% over the first half of 2008 as we closed no license deals with revenue recognized greater than $1.0 million. In contrast, we generated $25.6 million in total license revenue in the second half of the year recognizing five license deals greater than $1.0 million. In the first quarter of 2010, we recognized four $1.0 million license deals and view this as a sign the economy is continuing to stabilize and customers and prospects are beginning to invest more in improving their supply chains. While our results over the past several quarters seem to be a clear signal of improving demand, we and our customers still remain cautious regarding the global economic recovery as noted by IMFs World Economic outlook.
We intend to continue to invest significantly in research and development (R&D), which historically has averaged about $0.14 of every revenue dollar, to provide market leading solutions that help global manufacturers, wholesalers, distributors, retailers and logistics providers successfully manage accelerating and fluctuating demands as well as the increasing complexity and volatility of their local and global supply chains. Our research and development expenses for the three months ended March 31, 2010 and 2009 were $10.4 million and $10.2 million, respectively. At March 31, 2010, our R&D organization totaled approximately 625 employees, located in the U.S. and India, representing about 35% of our total employees worldwide.
For the three months ended March 31, 2010 and 2009, we generated cash flow from operating activities of $13.9 million and $12.7 million, respectively. Our cash, cash equivalents and investments at March 31, 2010 totaled $123.1 million, with no debt on our balance sheet. We currently have no credit facilities. During the past three years, our primary uses of cash have been funding of R&D investment, operations to drive earnings growth and repurchases of common stock.
At March 31, 2010, we had approximately $10.0 million remaining in share repurchase authority. In April 2010, our Board of Directors approved raising the Companys remaining share repurchase authority from $10.0 million to $25.0 million of Manhattan Associates outstanding common stock. In 2010, we anticipate that our priorities for the use of cash will be similar to prior years, with our first priority being continued investment in product development and profitably growing our business to extend our market leadership. We will continue to evaluate acquisition opportunities that are complementary to our product footprint and technology direction. We will also continue to weigh our share repurchase options against cash for acquisitions and investing in the business. We do not anticipate any borrowing requirements in 2010 for general corporate purposes.
Services revenue. Services revenue increased $2.6 million, or 5%, in the first quarter of 2010 compared to the same quarter in the prior year due to a $1.6 million and $1.0 million increase in revenue from professional services and customer support and software enhancements, respectively. The increase in services revenue is primarily due to improved license sales beginning in the second half of 2009 and continuing into the first quarter of 2010 combined with customer upgrade activity largely driven by the improving macroeconomic conditions. Services revenue for the Americas and APAC segments increased $2.6 million and $0.1 million, respectively, while EMEA segment decreased $0.1 million in the first quarter of 2010 compared to the first quarter of 2009.
Hardware and other. Hardware sales increased by $1.4 million, or 47%, to $4.5 million in the first quarter of 2010 compared to $3.1 million in the first quarter of 2009. Sales of hardware are largely dependent upon customer-specific desires, which fluctuate from quarter to quarter. Reimbursements for out-of-pocket expenses are required to be classified as revenue and are included in hardware and other revenue. Reimbursements by customers for out-of-pocket expenses were approximately $1.8 million and $2.0 million for the quarters ended March 31, 2010 and 2009, respectively.
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