Good afternoon. My name is Neyson [ph] and I will be your conference operator today. At this time, I would like to welcome everyone to the Manhattan Associates second quarter 2010 earnings call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator instructions) As a reminder, ladies and gentlemen, this call is being recorded, today, Tuesday, July 20th, 2010. I will now like to introduce Dennis Story, Chief Financial Officer of Manhattan Associates. Mr. Story, you may begin your conference.

Thank you, Neyson, and good afternoon, everyone. Welcome to Manhattan Associates 2010 second quarter earnings call. I will review our cautionary language and then turn the call over to Pete Sinisgalli, our CEO. During this call, including the question-and-answer session, we may make forward-looking statements regarding future events or future financial performance of Manhattan Associates. You are cautioned that these forward-looking statements involve risk and uncertainties, are not guarantees of future performance, and that actual results may differ materially from those in our forward-looking statements. I refer you to the reports Manhattan Associates files with the SEC for important factors that could cause actual results to differ materially from those in our projections, particularly our Annual Report on Form 10-K for fiscal 2009 and the Risk Factor discussion in that report. We are under no obligation to update these statements. In addition, our comments will cover certain non-GAAP financial measures. These measures are not in accordance with or an alternative for GAAP, and may be different from non-GAAP measures used by other companies. We believe that this presentation of certain non-GAAP measures facilitates investors’ understanding of our historical operating trends with useful insight into our profitability, exclusive of unusual adjustments. Our Form 8-K filed today with the SEC and available from our website www.manh.com contains important disclosure about our use of non-GAAP measures. In addition, our earnings release filed with the Form 8-K reconciles our non-GAAP measures to the most directly comparable GAAP measures. Now, I will turn the call over to Pete.

Thanks and welcome to our second quarter 2010 earnings call. I will start the call by taking you through an overview of the quarter and the first half. Dennis will then get into the details of our financial results. And then we’ll be happy to answer your questions. We are quite pleased with our second quarter and first half financial results and continue to be encouraged about our near term and long term prospects. License revenue for the quarter at $15.5 million was more than three times last year’s results and includes two deals of one million or more in recognized revenue. Total revenue was $77.6 million, up 33% versus Q2 of last year. Adjusted EPS was $0.38, almost three times Q2 2009’s outcome. Our win-loss rate continues to favor us in two out of every three competitive deals as the market is quite receptive to our broad suite of supply chain solutions on a common supply chain process platform. This quarter’s million plus license deals illustrate our strong, strategic position in one our customer is looking for a distribution solution to complement a supply chain transformation program. Although our discussions initially focused on the customers’ request for distribution management, we soon were able to expand the evaluation to include transportation management as we demonstrated the meaningful advantage of integrating warehouse management and transportation management for better performance. The second million plus deal was with an existing warehouse management customer who wanted to build on their WMS efficiency gains by enhancing their order management and inventory allocation processes. We were able to demonstrate the additive value of combining our order life cycle management solution suite with their existing WMS system. While questions certainly remain regarding the health and direction of the global economy, we believe we are well-positioned for continued success. Since the global economy began to stabilize in the third quarter of last year, we’ve posted four straight quarters of strong financial results. In addition, we continue to make important investments in innovation that clearly differentiate us from all others in our market. I believe our ability to execute and our commitment to innovation will be well-regarded and well-rewarded in the future. And I will speak more about this following Dennis’ comments. Dennis?

Thanks, Pete. The second quarter of 2010 mirrored the first a strong license and services revenue performance paved the way for Manhattan to deliver Q2 adjusted EPS of $0.38, representing growth of 171% over a weak Q2 2009 comp of $0.14. No question, we have had an exceptional first half in 2010 against significantly disparate comps in 2009. Business momentum is very positive on a trailing 12-month basis and heading in the right direction. As we look to the second half of 2010 and into 2011, our visibility is positively firming up on license pipeline and services demand. At this point we believe our business will begin to return to more historically typical seasonality starting in the second half of this year. I will provide some directional financial parameters for the second half throughout my review of Q2 and recap at the end before I turn the call back to Pete for the business update. Now, for some highlight in the second quarter. One, license revenue of $15.5 million nearly tripled the $4.1 million we delivered in Q2 of 2009 leading the way to a total revenue growth of 33%. Two, services revenue increased 11% year-over-year as positive license performance over the past four quarters is driving current growth in both professional services and maintenance revenue. Three, services revenue demand is exceeding capacity. We are actively hiring and added 55 net new associates during the second quarter almost entirely within professional services to cover services demand. The full quarterly expense impact of these hires will not appear until Q3. Four, we continue to maintain our meaningful strategic investments in R&D, investing about $0.14 of every revenue dollar to deliver competitive superior solutions. Five, we had an unexpected FX gain in Q2 resulting in a positive impact to other income, which…

Thanks, Dennis. As Dennis mentioned, we posted a solid license revenue result of $15.5 million in the quarter. About 55% of this quarter’s license revenue came from warehouse management sales and about 45% from our other solutions. The retail, consumer goods, and third party logistics verticals were once again strong contributors to license revenue in the quarter. In addition, one of our large deals was in the life sciences vertical this quarter. Both large deals were with existing customers making our license revenue mix this quarter 75% from existing customers and 25% from new customers. During the quarter, we completed software license wins with new customers such as Associated Hygienic Products, HPHC, Pickwick, Hire Logistics, CD Hartnett, and The Chamberlain Group. Three of the new customer wins this quarter were to customers who wanted the advantage of warehouse management on our supply chain process platform. Two of the three were wins over RedPrairie and one against Oracle. We also expanded partnership with existing customers such as Twatswiss [ph], AN Darenter [ph], Avon [ph], Benjamin Moore, Challenger Motor Freight, Converse, Dick's Sporting Goods, XL [ph], McKesson, Panalpina, Phillips-Van Heusen, Southern Wine and Spirits, Speed Transportation, and Harvard Drug. Our professional services organizations around the globe continue to platform well. In addition to posting solid financial results, the teams continue to drive improvements in customer satisfaction. In the second quarter of 2010, our global services teams helped customers go live with our solutions in more than 85 sites. Importantly, two of the go live sites were for one client who was deploying warehouse management on our supply chain process platform. Given this product has been available for just six months, bringing it two sites live so far this year is a real accomplishment. In addition, we are currently implementing many of the…

(Operator instructions) Your first question comes from the line of Mark Schappel from The Benchmark Company. Your line is open. Mark Schappel – The Benchmark Company: Hi, good evening. Nice job on the quarter, number one. Number two, Pete, starting with you, with respect to the Momentum user conference May, which appear to be a pretty good success, how did the event impact the current quarter or Q2 and how do you think it’s going to impact Q3 coming up here?

Yes. Well, thanks for the complement, Mark. It is great question. We were very pleased with the atmosphere, attitudes and I believe the lingering success that carried over from the Momentum conference at the conference largely attended by existing customers. This year we did have a fairly large group of prospects that attended. And I believe their exposure to very satisfied existing Manhattan customers and the broad platform messaging that was apparent throughout all of the sessions was a big positive in continuing to expand our pipeline. I think it had limited on Q2 closes, obviously with the conference being in May. But I do believe the very positive responses we’ve gotten from the conference will have a positive influence on pipeline expansion and closure in Q3, Q4 and looking out to 2011. Mark Schappel – The Benchmark Company: Okay. And, in May I believe the company released, which you call the FieldSCOUT, which is basically your mobile solution and I believe that is giving you some access to move into the stores. I am just wondering if there is any other solutions at least in your mind or the company is working on to help you guys move a little bit further into the retail store area.

It’s a great question, Mark. Yes, FieldSCOUT has the potential for future implementations in stores to help with inventory management and best allocation of inventory. We also have other solutions that can help in that regards as well. In some cases, we have clients that are using warehouse management capability to help better manage parts of their store inventory management, store operations, and we are optimistic that between our order lifecycle management solutions and some of our inventory optimization solutions, we can have a greater impact on store effectiveness. Now, those solutions won't be used specifically in the store for just the store operations, but can be used as a complement to other solutions they have in place. But in particular, we were quite excited about our order lifecycle solutions ability to make stores more effective for our clients. I think you probably, Mark, were exposed to our solution discussion at the conference in Hollywood where we talked about buy online, pickup in store, ship from the store, some of the more advanced capabilities that our element [ph] solution can allow some our retail clients to leverage in their multi-channel operations. So we certainly think order lifecycle management and its advanced functionality and capability will be a big opportunity for Manhattan to assist our retail customers with improved efficiency at the store level. Mark Schappel – The Benchmark Company: Okay. And then finally, for Dennis, a question for you. With respect to the financial guidance, now you’ve given a lot of guidelines but again you haven’t reinstated your formal financial guidance and given two good quarters really you’ve had are you still seeing some things out there that kind of unnerve you a little bit as far as giving formal financial guidance to the Street?

You know, I am not seeing a lot that’s unnerving me. I mean we are still concerned about the economy and you hear quite a bit of negative pessimism and we took pretty dramatic turn going into the first half of 2009, so we are pretty cautious and frankly just with the quality or the parameters that we are providing, Mark, for now we are going to stand down on providing EPS guidance. Mark Schappel – The Benchmark Company: Okay, thank you.

Your next question comes from the line of Terry Tillman from Raymond James. Your line is now open. Terry Tillman – Raymond James: Yes, thanks guys, nice job, and thanks for the detail. I guess this is the first question related to – you know because you had a lot of highs and lows here, peaks and valleys in terms of demand, what is it going to take to get back to like what you are doing in the late ’07 or first half of ’08 where kind of $18 million to $22 million per quarter license numbers. Is it you just frankly need more opportunities to work with or you need larger scope of deals or you just need better close rates? Can you help us with what will cause the next step, another step up if you will into even greater license revenue?

Yes, Terry, we are pretty confident in our market position and the overall market’s need for advances solutions like ours. And we believe in time we’ll see the kind of license revenue success quarterly that we did experience in ’07 and first part of ’08. I think the thing that ties back to the comment Dennis just made on Mark’s question about guidance, I think one of the things we are – we’d still like to see happen is a little bit more stability in the global economy and a little more enthusiasm and confidence in the global economy and I think that will be an important catalyst to getting some of the clients and prospects to make the decision to sign and move a little bit more quickly. What we are seeing right now, my opinion is that customers that are very strong in their marketplaces are confident to go ahead and make decisions that advance their supply chain capabilities. Those that are doing very well also have the confidence to move forward. But there still are a lot of companies that would really benefit by advances in their supply chain capability that I think are still hesitant. The velocity or the pipeline close rates hasn’t improved dramatically in the last year. I think it’s certainly better clearly by our results. But we think a more stable, more confident marketplace would allow us to accelerate our license revenue results. Terry Tillman – Raymond James: Okay. Okay, thanks, Pete. And then I guess, Pete this followup relates to – and I know this (inaudible) quite a bit looking at metrics, 75% of business from existing customers and there is two deals over a million dollars versus four last quarter. I mean is this just a prime example we shouldn’t read into this and the rest of the year we could see more of a balance of new versus existing or do you see something different making the back half of the year on that front?

You know, Terry, I think it’s more timing than anything else. I think we were quite pleased to be able to convince two existing customers to sign up for large deals in the quarter. So, we think that’s a great long term advantage for us. And I would suspect over the next several years as we continue to penetrate the market, the shift will gradually go to a higher percentage of (inaudible) quarter installed base – of installed base wins versus net new wins, but certainly in the next couple of quarters, next couple of years we think that 50:50 balance is something that we can achieve and they are excited about it. So, I wouldn’t read too much into this quarter’s 75:25. Terry Tillman – Raymond James: Okay. And just my last one relates to – for Pete or Dennis, just on a philosophical basis in going forward, I mean it’s one thing for us to ask you for guidance for the second half not even talk about next year, but are you guys committed to on an ongoing basis driving margin expansion? So as we look into ’11, could we see a scenarios where the margins can expand, because the reason I am asking is if we are adding a 100 more heads towards the back half of this year, is that something that could get in the way of you all continuing to improve on the margin side? Thank you.

So, I will take it and let Pete add some color, yes, we are absolutely committed to margin expansion. We are in the early stages of planning 2011, so I am not going to give you any parameters, Terry, but we are committed to margin expansion.

Yes, if you think – one thing we are quite bullish about – we have good visibility into our services pipelines and so forth and good pipelines for license sales and we believe the second half of this year will be a good opportunity for us to continue to strengthen ourselves to take market share and be able to – Terry, as you were saying earlier, get to those higher levels of quarterly license revenue fees and strong services business as well. And I think it’s a very attractive time for us to be investing for the next couple of years as well as delivering very strong current period financial results. Terry Tillman – Raymond James: Okay. Thank you.

Thanks, Terry.

Your next question comes from the line of Yun Kim from Gleacher & Company. Your line is now open. Yun Kim – Gleacher & Company: Thank you. So I noticed that there were only two seven-figure deals in the quarter, but you guys still did almost $15 million or actually above $15 million in license revenue. Typically you do about three to four to get there. Was one of the two million dollar plus deals unusually large or did you have just much higher ASP in the quarter?

Yes. Yun, as you know, we don’t give out the specifics of the million dollar deals, so I won't speak specifically to that. But I will tell you one of the things that we were quite pleased about in the quarter was the mix of the mid-sized deals that we had in the quarter. We saw and I think this is encouraging for the back half of the year and 2011, we saw some of the Tier 2 type companies getting more confident that was trying to just get of the sidelines and upgrade their supply chains. So, very nice mix, very nice growth in the mid-market size or the mid-tier, less than a million, but frankly bigger than the $0.25 million, $0.5 million range. It was a good quarter for that level of activity. Yun Kim – Gleacher & Company: Okay, good to hear. Then also, obviously good to see the positive trends in your consulting business. in terms of second half plan, your plan to add 100 additional headcount mostly in consulting organization, how much of that plan increase is driven by service backlog that you already have and how much of that is driven by executive deal signings?

You know, I would suggest you the majority, probably vast majority of that is visibility we have into work we need to perform over the next 12 months. I wouldn’t call it backlog, necessarily because we are not behind, but it is work that through deals we signed in Q1, Q2, upgrades we are starting to see in additional rollouts. We are confident with the stable global economy that the work we see in front of us will be there for us to deliver for customers. And one of the things we are quite focused on is making sure we continue to maintain a very high level of customer satisfaction. Over the last couple of years I think we’ve made some real good progress in further extending the satisfaction of our customer base. We want to make sure we maintain that as our market opportunities continue to improve. Yun Kim – Gleacher & Company: Okay, great. And then lastly, Pete, you guys signed a one large deal in the life sciences vertical. Are there any other opportunity of a large deal of that size outside of just retail CPG [ph] vertical in second half pipeline and may be you can just talk about your plan to expand outside of the core retail CPG verticals, whether you want to accelerate that plan or you want to keep focusing on your core verticals at least in the near term? Thanks.

Sure, sure. In the second half of the year we have a couple of deals in the pipeline that would be outside of our core retail – ship to retail vertical markets, so we are cautiously optimistic the investments we’ve made to play in other verticals will continue to pay off. Obviously we’ll continue to focus a lot of energy in the core verticals where we had success because we have a very meaningful, I believe, competitive advantage in those areas. We certainly don’t want to do anything to neglect those areas. But we’ll look for opportunities over the next couple of quarter, next couple of years to continue advance our success and verticals outside of those that we’ve traditionally had very good success. So, we are thrilled with the success we had in the second quarter, particularly that one large deal and believe we can leverage that and other going forward. Yun Kim – Gleacher & Company: Okay, great. Thank you so much.

Thank you.

(Operator instructions) And there are no further questions at this time. I will turn the call back over to management for any closing remarks.

Very good. Well, thank you all for joining us for the second quarter update. As always, we look forward to speaking with you in about 90 days. Good night.

And this concludes today’s conference call. You may now disconnect.