Logility Supply Chain Solutions (LGTY) 10-Q 8 Sep 16 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jul. 31, 2016	Aug. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	AMSWA
Entity Registrant Name	AMERICAN SOFTWARE INC
Entity Central Index Key	713,425
Current Fiscal Year End Date	--04-30
Entity Filer Category	Accelerated Filer
Class A Common Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		26,671,544
Class B Common Shares
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,432,086

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2016	Apr. 30, 2016
Current assets:
Cash and cash equivalents	$ 51,837	$ 49,004
Investments	20,037	20,957
Trade accounts receivable, less allowance for doubtful accounts of $173 at July 31, 2016 and $178 at April 30, 2016:
Billed	13,437	17,104
Unbilled	4,583	3,444
Prepaid expenses and other current assets	3,719	3,586
Total current assets	93,613	94,095
Investments-Noncurrent	6,088	7,924
Property and equipment, net of accumulated depreciation of $32,632 at July 31, 2016 and $32,437 at April 30, 2016	3,345	3,396
Capitalized software, net of accumulated amortization of $17,163 at July 31, 2016 and $16,173 at April 30, 2016	8,787	9,140
Goodwill	18,749	18,749
Other intangibles, net of accumulated amortization of $4,969 at July 31, 2016 and $4,747 at April 30, 2016	1,636	1,858
Other assets	1,147	1,562
Total assets	133,365	136,724
Current liabilities:
Accounts payable	1,436	1,280
Accrued compensation and related costs	2,301	4,349
Dividends payable	3,191	2,887
Other current liabilities	2,891	2,779
Deferred revenue	26,401	27,999
Total current liabilities	36,220	39,294
Deferred income taxes	1,327	1,319
Long-term deferred revenue	512	612
Other long-term liabilities	57	605
Total liabilities	38,116	41,830
Shareholders' equity:
Additional paid-in capital	116,055	114,210
Retained earnings	1,385	2,897
Class A treasury stock, 4,588,632 shares at July 31, 2016 and April 30, 2016, at cost	(25,559)	(25,559)
Total shareholders' equity	95,249	94,894
Commitments and contingencies
Total liabilities and shareholders' equity	133,365	136,724
Class A Common Shares
Shareholders' equity:
Common stock value	3,125	3,097
Class B Common Shares
Shareholders' equity:
Common stock value	$ 243	$ 249

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jul. 31, 2016	Apr. 30, 2016
Allowance for doubtful accounts receivable	$ 173	$ 178
Property and equipment, accumulated depreciation	32,632	32,437
Capitalized software, accumulated amortization	17,163	16,173
Other intangibles, accumulated amortization	$ 4,969	$ 4,747
Class A treasury stock, shares	4,588,632	4,588,632
Class A Common Shares
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	31,251,223	30,972,947
Class B Common Shares
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	2,432,086	2,487,086
Common stock, shares outstanding	2,432,086	2,487,086

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended
		Jul. 31, 2016	Jul. 31, 2015
Revenues:
License		$ 4,627	$ 4,876
Services and other		12,221	13,845
Maintenance		10,585	10,137
Total revenues		27,433	28,858
Cost of revenues:
License		1,823	1,927
Services and other		9,053	9,451
Maintenance		2,761	2,163
Total cost of revenues		13,637	13,541
Gross margin		13,796	15,317
Research and development		3,100	2,749
Sales and marketing		5,471	5,233
General and administrative		3,511	3,447
Amortization of acquisition-related intangibles		68	68
Total operating expenses		12,150	11,497
Operating income (loss)		1,646	3,820
Other income (expense):
Interest income		317	331
Other, net		343	(28)
Earnings (loss) before income taxes		2,306	4,123
Income tax expense		618	1,551
Net earnings		$ 1,688	$ 2,572
Earnings per common share:
Basic	[1]	$ 0.06	$ 0.09
Diluted	[1]	0.06	0.09
Cash dividends declared per common share		$ 0.11	$ 0.10
Shares used in the calculation of earnings per common share:
Basic		28,938	28,614
Diluted		29,254	28,882
[1]	Basic per share amounts are the same for Class A and Class B Common Shares. Diluted per share amounts for Class A Common Shares are shown above. Diluted earnings per share for Class B Common Shares under the two-class method are $0.06 and $0.09 for the three months ended July 31, 2016 and 2015, respectively. See Note D to the Condensed Consolidated Financial Statements.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - $ / shares		3 Months Ended
		Jul. 31, 2016	Jul. 31, 2015
Diluted	[1]	$ 0.06	$ 0.09
Class B Common Shares
Diluted	[2]	$ 0.06	$ 0.09
[1]	Basic per share amounts are the same for Class A and Class B Common Shares. Diluted per share amounts for Class A Common Shares are shown above. Diluted earnings per share for Class B Common Shares under the two-class method are $0.06 and $0.09 for the three months ended July 31, 2016 and 2015, respectively. See Note D to the Condensed Consolidated Financial Statements.
[2]	Amounts adjusted for rounding

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Cash flows from operating activities:
Net earnings	$ 1,688	$ 2,572
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,407	1,411
Stock-based compensation expense	388	398
Accretion of liability from purchase of business		3
Tax benefit of stock options exercised		14
Excess tax benefits from stock-based compensation		(13)
Net (gain) loss on investments	(216)	186
Deferred income taxes	8	(143)
Changes in operating assets and liabilities:
Purchases of trading securities	(1,871)	(3,210)
Proceeds from maturities and sales of trading securities	4,843	3,462
Accounts receivable, net	2,528	2,299
Prepaid expenses and other assets	282	316
Accounts payable and other liabilities	(2,329)	(289)
Deferred revenue	(1,698)	(1,741)
Net cash provided by operating activities	5,030	5,265
Cash flows from investing activities:
Capitalized computer software development costs	(636)	(817)
Purchases of property and equipment, net of disposals	(144)	(65)
Net cash used in investing activities	(780)	(882)
Cash flows from financing activities:
Excess tax benefits from stock based compensation		13
Proceeds from exercise of stock options	1,479	256
Dividends paid	(2,896)	(2,861)
Net cash used in financing activities	(1,417)	(2,592)
Net change in cash and cash equivalents	2,833	1,791
Cash and cash equivalents at beginning of period	49,004	44,655
Cash and cash equivalents at end of period	$ 51,837	$ 46,446

Basis of Presentation and Princ

Basis of Presentation and Principles of Consolidation	3 Months Ended
	Jul. 31, 2016
Basis of Presentation and Principles of Consolidation	A. Basis of Presentation and Principles of Consolidation Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of our management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at July 31, 2016, results of operations for the three months ended July 31, 2016 and 2015 and cash flows for the three months ended July 31, 2016 and 2015. The Company’s results for the three months ended July 31, 2016 are not necessarily indicative of the results expected for the full year. You should read these statements in conjunction with our audited consolidated financial statements and management’s discussion and analysis and results of operations included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016 (the “Annual Report”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Note 1 in the Notes to the Consolidated Financial Statements for the fiscal year ended April 30, 2016 contained in the Annual Report describes the significant accounting policies that we have used in preparing our financial statements. On an ongoing basis, we evaluate our estimates, including but not limited to those related to revenue/vendor specific objective evidence (“VSOE”), bad debts, capitalized software costs, goodwill, intangible assets, stock-based compensation, income taxes and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results could differ materially from these estimates under different assumptions or conditions. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of American Software, Inc. and its wholly-owned subsidiaries (“American Software” or the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Jul. 31, 2016
Revenue Recognition	B. Revenue Recognition We recognize revenue in accordance with the Software Revenue Recognition Topic of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification. License . Maintenance . Services . Subscription and other recurring revenues include fees for access rights to software solutions that are offered under a subscription-based delivery model where the users have the right to take possession of the software. Under this model, the software applications are hosted by the Company or by a third party and the customer accesses and uses the software on an as-needed basis over the Internet or via a dedicated line. The underlying arrangements typically include a single fee for the service that is billed monthly, quarterly or annually, and provides the customer with an option to take delivery of the software at any time during or after the subscription term. In addition, subscription and other recurring revenues include subscription-based software license revenues where the customer has taken physical possession of the software for a defined period of time. Subscription revenues are recognized ratably over the subscription term because the Company is unable to establish VSOE and separate the various elements, beginning on the commencement date of each contract. As of July 31, 2016, revenue recorded under this accounting treatment has not been significant. Indirect Channel Revenue . Deferred Revenue . Sales Taxes . Unbilled Accounts Receivable .

Declaration of Dividend Payable

Declaration of Dividend Payable	3 Months Ended
	Jul. 31, 2016
Declaration of Dividend Payable	C. Declaration of Dividend Payable On May 12, 2016, our Board of Directors declared a quarterly cash dividend of $0.11 per share of our Class A and Class B common stock. The cash dividend is payable on August 19, 2016 to Class A and Class B shareholders of record at the close of business on August 5, 2016.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Jul. 31, 2016
Earnings Per Common Share	D. Earnings Per Common Share We have two classes of common stock: Class A Common Shares and Class B Common Shares. Our Class B Common Shares are convertible into Class A Common Shares at any time, on a one-for-one basis. Under our Articles of Incorporation, if we declare dividends, holders of Class A Common Shares shall receive a $0.05 dividend per share prior to the Class B Common Shares receiving any dividend and holders of Class A Common Shares shall receive a dividend at least equal to Class B Common Shares dividends on a per share basis. As a result, we have computed the earnings per share in accordance with Earnings Per Share within the Presentation Topic of the FASB’s Accounting Standards Codification, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share. For our basic earnings per share calculation, we use the “two-class” method. Basic earnings per share are calculated by dividing net earnings attributable to each class of common stock by the weighted average number of shares outstanding. All undistributed earnings are allocated evenly between Class A and B Common Shares in the earnings per share calculation to the extent that earnings equal or exceed $0.05 per share. This allocation is based on management’s judgment after considering the dividend rights of the two classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B Common Shares to Class A Common Shares. The calculation of diluted earnings per share is similar to the calculation of basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under our stock incentive plans. For our diluted earnings per share calculation for Class A Common Shares, we use the “if-converted” method. This calculation assumes that all Class B Common Shares are converted into Class A Common Shares (if antidilutive) and, as a result, assumes there are no holders of Class B Common Shares to participate in undistributed earnings. For our diluted earnings per share calculation for Class B Common Shares, we use the “two-class” method. This calculation does not assume that all Class B Common Shares are converted into Class A Common Shares. In addition, this method assumes the dilutive effect if Class A stock options were converted to Class A Common Shares and the undistributed earnings are allocated evenly to both Class A and B Common Shares including Class A Common Shares issued pursuant to those converted stock options. This allocation is based on management’s judgment after considering the dividend rights of the two classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B Common Shares into Class A Common Shares. The following tables set forth the computation of basic earnings per common share and diluted earnings per common share (in thousands except for per share amounts): Basic earnings per common share: Three Months Ended Three Months Ended Class A Common Shares Class B Common Shares Class A Common Shares Class B Common Shares Distributed earnings $ 0.11 $ 0.11 $ 0.10 $ 0.10 Undistributed earnings (0.05 ) (0.05 ) (0.01 ) (0.01 ) Total $ 0.06 $ 0.06 $ 0.09 $ 0.09 Distributed earnings $ 2,933 $ 268 $ 2,604 $ 259 Undistributed earnings (1,383 ) (130 ) (264 ) (27 ) Total $ 1,550 $ 138 $ 2,340 $ 232 Basic weighted average common shares outstanding 26,457 2,481 26,027 2,587 Diluted EPS for Class A Common Shares Using the If-Converted Method Three Months Ended July 31, 2016 Undistributed Class A EPS* Per Basic $ 1,550 26,457 $ 0.06 Common Stock Equivalents — 316 — 1,550 26,773 0.06 Class B Common Share Conversion 138 2,481 — Diluted EPS for Class A Common Shares $ 1,688 29,254 $ 0.06 Three Months Ended July 31, 2015 Undistributed Class A EPS* Per Basic $ 2,340 26,027 $ 0.09 Common Stock Equivalents — 268 — 2,340 26,295 0.09 Class B Common Share Conversion 232 2,587 — Diluted EPS for Class A Common Shares $ 2,572 28,882 $ 0.09 Diluted EPS for Class B Common Shares Using the Two-Class Method Three Months Ended July 31, 2016 Undistributed Class B EPS* Per Basic $ 138 2,481 $ 0.06 Reallocation of undistributed earnings to Class A Common Shares from Class B Common Shares 2 — — Diluted EPS for Class B Common Shares $ 140 2,481 $ 0.06 Three Months Ended July 31, 2015 Undistributed Class B EPS* Per Basic $ 232 2,587 $ 0.09 Reallocation of undistributed earnings to Class B Common Shares from Class A Common Shares — — — Diluted EPS for Class B Common Shares $ 232 2,587 $ 0.09 * Amounts adjusted for rounding For the three months ended July 31, 2016 and 2015, we excluded options to purchase 855,439 and 1,016,500 Class A Common Shares, respectively, from the computation of diluted earnings per Class A Common Shares. We excluded these option share amounts because the exercise prices of those options were greater than the average market price of the Class A Common Shares during the applicable period. As of July 31, 2016, we had a total of 3,599,581 options outstanding and, as of July 31, 2015, we had a total of 3,011,169 options outstanding.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Jul. 31, 2016
Stock-Based Compensation	E. Stock-Based Compensation During the three months ended July 31, 2016 and 2015, we granted options for 333,000 and 336,000 shares of common stock, respectively. We recorded stock option compensation cost of approximately $388,000 and $398,000 and related income tax benefits of approximately $145,000 and $146,000 during the three months ended July 31, 2016 and 2015, respectively. We record stock-based compensation expense on a straight-line basis over the vesting period directly to additional paid-in capital. Prior to the adoption of ASU No. 2016-09, cash flows resulting from the tax benefits generated by tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) were classified as financing cash flows. During the three months ended July 31, 2015, we realized excess tax benefits of approximately $13,000 which are included as a component of cash flows from financing activities in the accompanying 2015 consolidated statements of cash flows. During the three months ended July 31, 2016 and 2015, we issued 223,276 and 44,050 shares of common stock, respectively, resulting from the exercise of stock options. The total intrinsic value of options exercised during the three months ended July 31, 2016 and 2015 based on market value at the exercise dates was approximately $856,000 and $159,000, respectively. As of July 31, 2016, unrecognized compensation cost related to unvested stock option awards approximated $3.3 million, which we expect to recognize over a weighted average period of 1.73 years.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Jul. 31, 2016
Fair Value of Financial Instruments	F. Fair Value of Financial Instruments We measure our investments based on a fair value hierarchy disclosure framework that prioritizes and ranks the level of market price observability used in measuring assets and liabilities at fair value. A number of factors affect market price observability, including the type of asset or liability and its characteristics. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1—Quoted prices in active markets for identical instruments. • Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The following is a general description of the valuation methodologies we use for financial assets and liabilities measured at fair value, including the general classification of such assets and liabilities pursuant to the valuation hierarchy. Cash Equivalents Marketable Securities The following tables present our assets and liabilities that we measured at fair value on a recurring basis as of July 31, 2016 and April 30, 2016, respectively, and indicates the fair value hierarchy of the valuation techniques we used to determine such fair value (in thousands): July 31, 2016 Quoted Prices Significant Significant Balance Cash equivalents $ 48,293 $ — $ — $ 48,293 Marketable securities 7,894 18,211 — 26,105 Total $ 56,187 $ 18,211 $ — $ 74,398 April 30, 2016 Quoted Prices Significant Significant Balance Cash equivalents $ 45,977 $ — $ — $ 45,977 Marketable securities 7,374 21,487 — 28,861 Total $ 53,351 $ 21,487 $ — $ 74,838 In addition to cash equivalents and marketable securities classified as trading securities, we also have an equity method investment valued at approximately $20,000 as of July 31, 2016 and April 30, 2016, that is not recorded at fair value and, thus, is not included in the tables above.

Stock Repurchases

Stock Repurchases	3 Months Ended
	Jul. 31, 2016
Stock Repurchases	G. Stock Repurchases On August 19, 2002, our Board of Directors approved a resolution authorizing the repurchase of up to an additional 2.0 million shares of our Class A common stock. We have made and will make these repurchases through open market purchases at prevailing market prices. The timing of any repurchase will depend upon market conditions, the market price of our common stock and management’s assessment of our liquidity and cash flow needs. Under this repurchase plan, through July 31, 2016, we have repurchased 1,053,679 shares of common stock at a cost of approximately $6.2 million. As of July 31, 2016, under all repurchase plans previously authorized, including this most recent plan, we have repurchased a total of 4,588,632 shares of common stock at a cost of approximately $25.6 million.

Comprehensive Income

Comprehensive Income	3 Months Ended
	Jul. 31, 2016
Comprehensive Income	H. Comprehensive Income We have not included condensed consolidated statements of comprehensive income in the accompanying unaudited condensed consolidated financial statements since comprehensive income and net earnings presented in the accompanying condensed consolidated statements of operations would be substantially the same.

Industry Segments

Industry Segments	3 Months Ended
	Jul. 31, 2016
Industry Segments	I. Industry Segments We provide our software solutions through three major business segments, which are further broken down into a total of four major product and service groups. The three business segments are (1) Enterprise Resource Planning (“ERP”), (2) Supply Chain Management (“SCM”), and (3) Information Technology (“IT”) Consulting. The ERP segment consists of (i) American Software ERP, which provides purchasing and materials management, customer order processing, financial, e-commerce and traditional manufacturing solutions, and (ii) New Generation Computing (“NGC”), which provides industry-specific business software to both retailers and manufacturers in the apparel, sewn products and furniture industries. The SCM segment, which consists of Logility, a wholly-owned subsidiary, as well as its subsidiary, DMI, provides collaborative supply chain solutions to streamline and optimize the forecasting, inventory, production, supply, allocation, distribution and management of products between trading partners. The IT Consulting segment consists of The Proven Method, Inc., an IT staffing and consulting services firm. We also provide support for our software products, such as software enhancements, documentation, updates, customer education, consulting, systems integration services, maintenance and support services. Our chief operating decision maker is the President and Chief Executive Officer (“CEO”). While the CEO is apprised of a variety of financial metrics and information, we manage our business primarily on a segment basis, with the CEO evaluating performance based upon segment operating profit or loss that includes an allocation of common expenses, but excludes certain unallocated expenses, which are included in the ERP segment. All of our revenues are derived from external customers. We do not have any inter-segment revenue. Our income taxes and dividends are paid at a consolidated level. Consequently, it is not practical to show these items by operating segment. In the following table, we have broken down the intersegment transactions applicable to the three months ended July 31, 2016 and 2015: Three Months Ended July 31, 2016 2015 Revenues: Enterprise Resource Planning $ 3,008 $ 3,525 Collaborative Supply Chain Management 19,411 18,573 IT Consulting 5,014 6,760 $ 27,433 $ 28,858 Operating income (loss) before intersegment eliminations: Enterprise Resource Planning $ (1,416 ) $ (962 ) Collaborative Supply Chain Management 2,852 4,193 IT Consulting 210 589 $ 1,646 $ 3,820 Intersegment eliminations: Enterprise Resource Planning $ (906 ) $ (729 ) Collaborative Supply Chain Management 896 700 IT Consulting 10 29 $ — $ — Three Months Ended 2016 2015 Operating income (loss) after intersegment eliminations: Enterprise Resource Planning $ (2,322 ) $ (1,691 ) Collaborative Supply Chain Management 3,748 4,893 IT Consulting 220 618 $ 1,646 $ 3,820 Three Months Ended 2016 2015 Capital expenditures: Enterprise Resource Planning $ 42 $ 8 Collaborative Supply Chain Management 102 57 IT Consulting — — $ 144 $ 65 Capitalized Software: Enterprise Resource Planning $ — $ — Collaborative Supply Chain Management 636 817 IT Consulting — — $ 636 $ 817 Depreciation and amortization: Enterprise Resource Planning $ 144 $ 150 Collaborative Supply Chain Management 1,261 1,258 IT Consulting 2 3 $ 1,407 $ 1,411 Earnings (loss) before income taxes: Enterprise Resource Planning $ (729 ) $ (578 ) Collaborative Supply Chain Management 2,825 4,112 IT Consulting 210 589 $ 2,306 $ 4,123 Major Customer No one customer accounted for more than 10% of total revenues for the three months ended July 31, 2016 and 2015.

Contingencies

Contingencies	3 Months Ended
	Jul. 31, 2016
Contingencies	J. Contingencies We more often than not indemnify our customers against damages and costs resulting from claims of patent, copyright or trademark infringement associated with use of our products. We have historically not been required to make any payments under such indemnifications. However, we continue to monitor the conditions that are subject to the indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses under the indemnifications when those losses are estimable. In addition, we warrant to our customers that our products operate substantially in accordance with the software products’ specifications. Historically, we have incurred no costs related to software product warranties and we do not expect to incur such costs in the future, and as such we have made no accruals for software product warranty costs. Additionally, we are involved in various claims arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on our financial position or results of operations.

Subsequent Event

Subsequent Event	3 Months Ended
	Jul. 31, 2016
Subsequent Event	K. Subsequent Event On August 18, 2016, our Board of Directors declared a quarterly cash dividend of $0.11 per share of our Class A and Class B Common Stock. The cash dividend is payable on December 2, 2016 to Class A and Class B shareholders of record at the close of business on November 11, 2016. Effective August 23, 2016, the Company acquired certain assets of privately-held AdapChain, Inc., a Pennsylvania corporation and a provider of high quality modular integration technology (“ACI”), pursuant to the terms of an asset purchase agreement, dated as of August 23, 2016 (the “Purchase Agreement”). This acquisition will expand and complement the products and services offered by Logility. Under the terms of the Purchase Agreement, the Company acquired the assets in exchange for a purchase price of approximately $4.0 million in cash, subject to certain post-closing adjustments. Additional consideration is payable at the end of each three month period in the 36 month period following the Closing Date (such 36 month period being the “Earnout Period”) from the license fee revenues contracted for and recorded as revenue in accordance with GAAP by either ACI or the Company from the sale of ACI software during such three month period, up to a maximum aggregate amount of $2.0 million over the Earnout Period. The Company will include the financial results of ACI in its consolidated financial statements commencing August 23, 2016. The acquired assets consist primarily of accounts receivable, unbilled revenue, other intangible assets and all equity interests in any subsidiary of ACI, which includes AdapChain Solutions PVT, LTD (India), and are net of certain customer related liabilities. Acquisition related costs were not material for any period presented in the consolidated financial statements. Based upon the timing of the acquisition subsequent to the end of the Company’s first quarter of fiscal 2017, the preliminary accounting for the business combination is incomplete at the time of filing this report. As a result, the Company is unable to provide amounts recognized as of the acquisition date for major classes of assets and liabilities acquired. The Company will include this information in its Quarterly Report on Form 10-Q for the second quarter of fiscal 2017.

Basis of Presentation and Pri18

Basis of Presentation and Principles of Consolidation (Policies)	3 Months Ended
	Jul. 31, 2016
Basis of Presentation	A. Basis of Presentation and Principles of Consolidation Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. In the opinion of our management, these condensed consolidated financial statements contain all normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position at July 31, 2016, results of operations for the three months ended July 31, 2016 and 2015 and cash flows for the three months ended July 31, 2016 and 2015. The Company’s results for the three months ended July 31, 2016 are not necessarily indicative of the results expected for the full year. You should read these statements in conjunction with our audited consolidated financial statements and management’s discussion and analysis and results of operations included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2016 (the “Annual Report”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Note 1 in the Notes to the Consolidated Financial Statements for the fiscal year ended April 30, 2016 contained in the Annual Report describes the significant accounting policies that we have used in preparing our financial statements. On an ongoing basis, we evaluate our estimates, including but not limited to those related to revenue/vendor specific objective evidence (“VSOE”), bad debts, capitalized software costs, goodwill, intangible assets, stock-based compensation, income taxes and contingencies. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results could differ materially from these estimates under different assumptions or conditions.
Principles of Consolidation	Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of American Software, Inc. and its wholly-owned subsidiaries (“American Software” or the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation.
Revenue Recognition	We recognize revenue in accordance with the Software Revenue Recognition Topic of the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification. License . Maintenance . Services . Subscription and other recurring revenues include fees for access rights to software solutions that are offered under a subscription-based delivery model where the users have the right to take possession of the software. Under this model, the software applications are hosted by the Company or by a third party and the customer accesses and uses the software on an as-needed basis over the Internet or via a dedicated line. The underlying arrangements typically include a single fee for the service that is billed monthly, quarterly or annually, and provides the customer with an option to take delivery of the software at any time during or after the subscription term. In addition, subscription and other recurring revenues include subscription-based software license revenues where the customer has taken physical possession of the software for a defined period of time. Subscription revenues are recognized ratably over the subscription term because the Company is unable to establish VSOE and separate the various elements, beginning on the commencement date of each contract. As of July 31, 2016, revenue recorded under this accounting treatment has not been significant. Indirect Channel Revenue . Deferred Revenue . Sales Taxes . Unbilled Accounts Receivable .
Earnings Per Common Share	We have two classes of common stock: Class A Common Shares and Class B Common Shares. Our Class B Common Shares are convertible into Class A Common Shares at any time, on a one-for-one basis. Under our Articles of Incorporation, if we declare dividends, holders of Class A Common Shares shall receive a $0.05 dividend per share prior to the Class B Common Shares receiving any dividend and holders of Class A Common Shares shall receive a dividend at least equal to Class B Common Shares dividends on a per share basis. As a result, we have computed the earnings per share in accordance with Earnings Per Share within the Presentation Topic of the FASB’s Accounting Standards Codification, which requires companies that have multiple classes of equity securities to use the “two-class” method in computing earnings per share. For our basic earnings per share calculation, we use the “two-class” method. Basic earnings per share are calculated by dividing net earnings attributable to each class of common stock by the weighted average number of shares outstanding. All undistributed earnings are allocated evenly between Class A and B Common Shares in the earnings per share calculation to the extent that earnings equal or exceed $0.05 per share. This allocation is based on management’s judgment after considering the dividend rights of the two classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B Common Shares to Class A Common Shares. The calculation of diluted earnings per share is similar to the calculation of basic earnings per share, except that the calculation includes the dilutive effect of the assumed exercise of options issuable under our stock incentive plans. For our diluted earnings per share calculation for Class A Common Shares, we use the “if-converted” method. This calculation assumes that all Class B Common Shares are converted into Class A Common Shares (if antidilutive) and, as a result, assumes there are no holders of Class B Common Shares to participate in undistributed earnings. For our diluted earnings per share calculation for Class B Common Shares, we use the “two-class” method. This calculation does not assume that all Class B Common Shares are converted into Class A Common Shares. In addition, this method assumes the dilutive effect if Class A stock options were converted to Class A Common Shares and the undistributed earnings are allocated evenly to both Class A and B Common Shares including Class A Common Shares issued pursuant to those converted stock options. This allocation is based on management’s judgment after considering the dividend rights of the two classes of common stock, the control of the Class B shareholders and the convertibility rights of the Class B Common Shares into Class A Common Shares.

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Jul. 31, 2016
Basic Earnings Per Common Share	Basic earnings per common share: Three Months Ended Three Months Ended Class A Common Shares Class B Common Shares Class A Common Shares Class B Common Shares Distributed earnings $ 0.11 $ 0.11 $ 0.10 $ 0.10 Undistributed earnings (0.05 ) (0.05 ) (0.01 ) (0.01 ) Total $ 0.06 $ 0.06 $ 0.09 $ 0.09 Distributed earnings $ 2,933 $ 268 $ 2,604 $ 259 Undistributed earnings (1,383 ) (130 ) (264 ) (27 ) Total $ 1,550 $ 138 $ 2,340 $ 232 Basic weighted average common shares outstanding 26,457 2,481 26,027 2,587
Diluted Earnings Per Share for Class A Common Shares Using If-Converted Method	Diluted EPS for Class A Common Shares Using the If-Converted Method Three Months Ended July 31, 2016 Undistributed Class A EPS* Per Basic $ 1,550 26,457 $ 0.06 Common Stock Equivalents — 316 — 1,550 26,773 0.06 Class B Common Share Conversion 138 2,481 — Diluted EPS for Class A Common Shares $ 1,688 29,254 $ 0.06 Three Months Ended July 31, 2015 Undistributed Class A EPS* Per Basic $ 2,340 26,027 $ 0.09 Common Stock Equivalents — 268 — 2,340 26,295 0.09 Class B Common Share Conversion 232 2,587 — Diluted EPS for Class A Common Shares $ 2,572 28,882 $ 0.09
Diluted Earnings Per Share for Class B Common Shares Using Two-Class Method	Diluted EPS for Class B Common Shares Using the Two-Class Method Three Months Ended July 31, 2016 Undistributed Class B EPS* Per Basic $ 138 2,481 $ 0.06 Reallocation of undistributed earnings to Class A Common Shares from Class B Common Shares 2 — — Diluted EPS for Class B Common Shares $ 140 2,481 $ 0.06 Three Months Ended July 31, 2015 Undistributed Class B EPS* Per Basic $ 232 2,587 $ 0.09 Reallocation of undistributed earnings to Class B Common Shares from Class A Common Shares — — — Diluted EPS for Class B Common Shares $ 232 2,587 $ 0.09 * Amounts adjusted for rounding

Fair Value of Financial Instr20

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Jul. 31, 2016
Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present our assets and liabilities that we measured at fair value on a recurring basis as of July 31, 2016 and April 30, 2016, respectively, and indicates the fair value hierarchy of the valuation techniques we used to determine such fair value (in thousands): July 31, 2016 Quoted Prices Significant Significant Balance Cash equivalents $ 48,293 $ — $ — $ 48,293 Marketable securities 7,894 18,211 — 26,105 Total $ 56,187 $ 18,211 $ — $ 74,398 April 30, 2016 Quoted Prices Significant Significant Balance Cash equivalents $ 45,977 $ — $ — $ 45,977 Marketable securities 7,374 21,487 — 28,861 Total $ 53,351 $ 21,487 $ — $ 74,838

Industry Segments (Tables)

Industry Segments (Tables)	3 Months Ended
	Jul. 31, 2016
Segment Operating Profit or Loss	In the following table, we have broken down the intersegment transactions applicable to the three months ended July 31, 2016 and 2015: Three Months Ended July 31, 2016 2015 Revenues: Enterprise Resource Planning $ 3,008 $ 3,525 Collaborative Supply Chain Management 19,411 18,573 IT Consulting 5,014 6,760 $ 27,433 $ 28,858 Operating income (loss) before intersegment eliminations: Enterprise Resource Planning $ (1,416 ) $ (962 ) Collaborative Supply Chain Management 2,852 4,193 IT Consulting 210 589 $ 1,646 $ 3,820 Intersegment eliminations: Enterprise Resource Planning $ (906 ) $ (729 ) Collaborative Supply Chain Management 896 700 IT Consulting 10 29 $ — $ — Three Months Ended 2016 2015 Operating income (loss) after intersegment eliminations: Enterprise Resource Planning $ (2,322 ) $ (1,691 ) Collaborative Supply Chain Management 3,748 4,893 IT Consulting 220 618 $ 1,646 $ 3,820 Three Months Ended 2016 2015 Capital expenditures: Enterprise Resource Planning $ 42 $ 8 Collaborative Supply Chain Management 102 57 IT Consulting — — $ 144 $ 65 Capitalized Software: Enterprise Resource Planning $ — $ — Collaborative Supply Chain Management 636 817 IT Consulting — — $ 636 $ 817 Depreciation and amortization: Enterprise Resource Planning $ 144 $ 150 Collaborative Supply Chain Management 1,261 1,258 IT Consulting 2 3 $ 1,407 $ 1,411 Earnings (loss) before income taxes: Enterprise Resource Planning $ (729 ) $ (578 ) Collaborative Supply Chain Management 2,825 4,112 IT Consulting 210 589 $ 2,306 $ 4,123

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Apr. 30, 2016
Revenue Recognition [Line Items]
Amounts received for reimbursement of travel and other out-of-pocket expenses	$ 632,000	$ 557,000
Unbilled amounts	4,583,000		$ 3,444,000
Unbilled License Fees
Revenue Recognition [Line Items]
Unbilled amounts	2,100,000		1,500,000
Unbilled Services Revenues
Revenue Recognition [Line Items]
Unbilled amounts	$ 2,500,000		$ 1,900,000
Minimum
Revenue Recognition [Line Items]
Contractual period of maintenance contract	1 year
Maximum
Revenue Recognition [Line Items]
Contractual period of maintenance contract	3 years

Declaration of Dividend Payab23

Declaration of Dividend Payable - Additional Information (Detail) - $ / shares	May 12, 2016	Jul. 31, 2016	Jul. 31, 2015
Dividends Payable [Line Items]
Cash dividends declared per common share	$ 0.11	$ 0.11	$ 0.10
Cash dividend payable date	Aug. 19, 2016
Cash dividends declared, record date	Aug. 5, 2016

Earnings Per Common Share - Add

Earnings Per Common Share - Additional Information (Detail) - $ / shares	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Earnings Per Share [Line Items]
Options to Purchase Excluded	855,439	1,016,500
Options to Purchase Outstanding	3,599,581	3,011,169
Class A Common Shares
Earnings Per Share [Line Items]
Dividends preference, per share	$ 0.05

Basic Earnings Per Common Share

Basic Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Jul. 31, 2016	Jul. 31, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Total	[1]	$ 0.06	$ 0.09
Basic weighted average common shares outstanding		28,938	28,614
Class A Common Shares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distributed earnings		$ 0.11	$ 0.10
Undistributed earnings		(0.05)	(0.01)
Total	[2]	$ 0.06	$ 0.09
Distributed earnings		$ 2,933	$ 2,604
Undistributed earnings		(1,383)	(264)
Total		$ 1,550	$ 2,340
Basic weighted average common shares outstanding		26,457	26,027
Class B Common Shares
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Distributed earnings		$ 0.11	$ 0.10
Undistributed earnings		(0.05)	(0.01)
Total	[2]	$ 0.06	$ 0.09
Distributed earnings		$ 268	$ 259
Undistributed earnings		(130)	(27)
Total		$ 138	$ 232
Basic weighted average common shares outstanding		2,481	2,587
[1]	Basic per share amounts are the same for Class A and Class B Common Shares. Diluted per share amounts for Class A Common Shares are shown above. Diluted earnings per share for Class B Common Shares under the two-class method are $0.06 and $0.09 for the three months ended July 31, 2016 and 2015, respectively. See Note D to the Condensed Consolidated Financial Statements.
[2]	Amounts adjusted for rounding

Diluted Earnings Per Share for

Diluted Earnings Per Share for Class A Common Shares Using If-Converted Method (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Jul. 31, 2016	Jul. 31, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Undistributed & Distributed Earnings, Per Basic		$ 1,688	$ 2,572
Basic weighted average common shares outstanding		28,938	28,614
Diluted, Class A Common Shares		29,254	28,882
Basic, EPS	[1]	$ 0.06	$ 0.09
Diluted, EPS	[1]	$ 0.06	$ 0.09
Class A Common Shares
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Undistributed & Distributed Earnings, Per Basic		$ 1,550	$ 2,340
Undistributed & Distributed Earnings, Class B Common share Conversion		138	232
Net Income (Loss) Available to Common Stockholders, Diluted, Total		$ 1,688	$ 2,572
Basic weighted average common shares outstanding		26,457	26,027
Common Stock Equivalents		316	268
Weighted Average Number of Shares Including Common Stock Equivalents, Diluted		26,773	26,295
Class B Common Share Conversion		2,481	2,587
Diluted, Class A Common Shares		29,254	28,882
Basic, EPS	[2]	$ 0.06	$ 0.09
Diluted, EPS	[2]	$ 0.06	$ 0.09
[1]	Basic per share amounts are the same for Class A and Class B Common Shares. Diluted per share amounts for Class A Common Shares are shown above. Diluted earnings per share for Class B Common Shares under the two-class method are $0.06 and $0.09 for the three months ended July 31, 2016 and 2015, respectively. See Note D to the Condensed Consolidated Financial Statements.
[2]	Amounts adjusted for rounding

Diluted Earnings Per Share fo27

Diluted Earnings Per Share for Class B Common Shares Using Two-Class Method (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Jul. 31, 2016	Jul. 31, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net earnings		$ 1,688	$ 2,572
Basic weighted average common shares outstanding		28,938	28,614
Weighted Average Number of Shares Outstanding, Diluted		29,254	28,882
Basic, EPS	[1]	$ 0.06	$ 0.09
Diluted, EPS	[1]	$ 0.06	$ 0.09
Class B Common Shares
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Undistributed & Distributed Earnings, Class B Common share Conversion		$ 138	$ 232
Reallocation of Undistributed Earnings		2
Net earnings		$ 140	$ 232
Basic weighted average common shares outstanding		2,481	2,587
Weighted Average Number of Shares Outstanding, Diluted		2,481	2,587
Basic, EPS	[2]	$ 0.06	$ 0.09
Diluted, EPS	[2]	$ 0.06	$ 0.09
[1]	Basic per share amounts are the same for Class A and Class B Common Shares. Diluted per share amounts for Class A Common Shares are shown above. Diluted earnings per share for Class B Common Shares under the two-class method are $0.06 and $0.09 for the three months ended July 31, 2016 and 2015, respectively. See Note D to the Condensed Consolidated Financial Statements.
[2]	Amounts adjusted for rounding

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option for common stock	333,000	336,000
Stock-based compensation expense	$ 388,000	$ 398,000
Income tax benefit	$ 145,000	146,000
Excess tax benefits from stock based compensation		$ 13,000
Stock options exercised	223,276	44,050
Total intrinsic value of options exercised	$ 856,000	$ 159,000
Unrecognized compensation cost related to unvested stock option	$ 3,300,000
Weighted average period for Unrecognized compensation cost	1 year 8 months 23 days

Assets and Liabilities Measured

Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Apr. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 48,293	$ 45,977
Marketable securities	26,105	28,861
Total	74,398	74,838
Quoted Prices in Active Markets for Identical Assets, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	48,293	45,977
Marketable securities	7,894	7,374
Total	56,187	53,351
Significant Other Observable Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	18,211	21,487
Total	$ 18,211	$ 21,487

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($)	Jul. 31, 2016	Apr. 30, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity method investment valued	$ 20,000	$ 20,000

Stock Repurchases - Additional

Stock Repurchases - Additional Information (Detail) - Class A Common Shares $ in Millions	3 Months Ended	167 Months Ended
	Jul. 31, 2016USD ($)shares	Jul. 31, 2016USD ($)shares
Equity, Class of Treasury Stock [Line Items]
Common stock shares repurchased	4,588,632
Cost of common stock repurchased | $	$ 25.6
Shares Stock Repurchase Plan, August 19, 2002
Equity, Class of Treasury Stock [Line Items]
Approved number of shares to be repurchased	2,000,000	2,000,000
Common stock shares repurchased		1,053,679
Cost of common stock repurchased | $		$ 6.2

Industry Segments - Additional

Industry Segments - Additional Information (Detail)	3 Months Ended
	Jul. 31, 2016CustomerSegmentGroup	Jul. 31, 2015Customer
Segment Reporting Information [Line Items]
Number of major business segments | Segment	3
Number of major product and service groups | Group	4
Number of major customers that account more than 10% of total revenues | Customer	0	0

Segment Information (Detail)

Segment Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Segment Reporting Information [Line Items]
Revenues	$ 27,433	$ 28,858
Operating income(loss)	1,646	3,820
Capital expenditures	144	65
Capitalized Software	636	817
Depreciation and amortization	1,407	1,411
Earnings (loss) before income taxes	2,306	4,123
Enterprise Resource Planning
Segment Reporting Information [Line Items]
Revenues	3,008	3,525
Operating income(loss)	(2,322)	(1,691)
Capital expenditures	42	8
Depreciation and amortization	144	150
Earnings (loss) before income taxes	(729)	(578)
Collaborative Supply Chain Management
Segment Reporting Information [Line Items]
Revenues	19,411	18,573
Operating income(loss)	3,748	4,893
Capital expenditures	102	57
Capitalized Software	636	817
Depreciation and amortization	1,261	1,258
Earnings (loss) before income taxes	2,825	4,112
IT Consulting
Segment Reporting Information [Line Items]
Revenues	5,014	6,760
Operating income(loss)	220	618
Depreciation and amortization	2	3
Earnings (loss) before income taxes	210	589
Operating Segments
Segment Reporting Information [Line Items]
Operating income(loss)	1,646	3,820
Operating Segments | Enterprise Resource Planning
Segment Reporting Information [Line Items]
Operating income(loss)	(1,416)	(962)
Operating Segments | Collaborative Supply Chain Management
Segment Reporting Information [Line Items]
Operating income(loss)	2,852	4,193
Operating Segments | IT Consulting
Segment Reporting Information [Line Items]
Operating income(loss)	210	589
Intersegment Eliminations | Enterprise Resource Planning
Segment Reporting Information [Line Items]
Operating income(loss)	(906)	(729)
Intersegment Eliminations | Collaborative Supply Chain Management
Segment Reporting Information [Line Items]
Operating income(loss)	896	700
Intersegment Eliminations | IT Consulting
Segment Reporting Information [Line Items]
Operating income(loss)	$ 10	$ 29

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions	Aug. 23, 2016	Aug. 18, 2016	May 12, 2016	Jul. 31, 2016	Jul. 31, 2015
Subsequent Event [Line Items]
Cash dividends declared per common share			$ 0.11	$ 0.11	$ 0.10
Cash dividend payable date			Aug. 19, 2016
Cash dividends declared, record date			Aug. 5, 2016
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared per common share		$ 0.11
Cash dividend payable date		Dec. 2, 2016
Cash dividends declared, record date		Nov. 11, 2016
Subsequent Event | AdapChain Inc
Subsequent Event [Line Items]
Business acquisition, purchase price paid in cash	$ 4
Earnout Period	36 months
Additional consideration payments	$ 2