Exhibit 99.1
American Software Reports Second Quarter Fiscal Year 2004 Results
39% Increase in Second Quarter Operating Income Compared to Last Year
11% Increase in Second Quarter License Fees Compared to Last Year
ATLANTA, Nov. 18 /PRNewswire-FirstCall/ -- American Software, Inc.
(Nasdaq: AMSWA) today reported its financial results for the second quarter of
fiscal year 2004, marking the eleventh consecutive quarter of profitability
and positive cash flow.
Income from continuing operations for the second quarter increased 48%
compared to the same quarter last year to approximately $2.3 million or
earnings per diluted share from continuing operations of $0.09 compared to
income from continuing operations of approximately $1.6 million, or earnings
per diluted share from continuing operations of $0.07 for the comparable
period a year ago. Total revenues for the second quarter were $13.5 million
compared to $14.8 million the same quarter last year. For the second quarter,
software license fees were $2.9 million up from $2.6 million during the same
period last year. Services and other revenues were $6.1 million compared to
$7.1 million for the same period last year. Maintenance revenues were
$4.5 million compared to $5.0 million during the same period last year.
Operating income was $1.6 million for the second quarter fiscal 2004 compared
to $1.2 million during the same period last year.
Total revenues for the six months ended October 31, 2003 were
$26.6 million compared to $29.3 million for the comparable period last year.
Software license fees for the six months period were $5.6 million, unchanged
from $5.6 million in the same period last year. Services and other revenues
were $12.0 million compared to $13.6 million in the same period last year.
Maintenance revenues were $9.1 million compared to $10.1 million in the same
period last year. For the six months ended October 31, 2003, the Company
reported income from continuing operations of approximately $3.4 million or
earnings per diluted share of $0.14 compared to income from continuing
operations of $2.6 million or earnings per diluted share of $0.11.
"We are pleased with our 11% increase in license fees and our continued
profitability during the quarter," said James C. Edenfield, president and CEO
of American Software. "Our robust product offerings, deep domain expertise,
strong customer base and ability to deliver results for our customers combined
with our continued financial strength provide a solid platform for growth when
the general economic environment improves and manufacturers, distributors and
retailers resume their investment in applications that can deliver a
competitive advantage."
The overall financial condition of the Company remains strong, with cash
and investments of approximately $62.9 million and zero debt as of October 31,
2003. The Company's cash and investment position increased by approximately
$200,000 sequentially from July 31, 2003 and $5.6 million compared to October
31, 2002. During the second quarter, the Company paid a $.06 cent per share
quarterly dividend for a total of $1.4 million and purchased approximately
61,000 of its shares on the open market under the current stock buyback
program at a cost of approximately $304,000. There are approximately
1.8 million shares remaining to purchase under the total authorization of
4.2 million shares.
Recent Highlights Include:
-- On August 20, 2003, the Company announced a Q3 FY04 quarterly cash
dividend of $0.06 per share. The Company's cash dividend is payable on
December 15, 2003 to all shareholders of record at the close of business on
November 24, 2003.
Customers
-- Notable new and existing customers placing orders with the Company in
the second quarter of fiscal year 2004 include: Avondale Mills Inc.,
Cannondale Bicycle Corporation, Daimler Chrysler, Gold Toe Brands, Ingram
Micro, Komatsu America, National Center for Employment of the Disabled (NCED),
Petroleos de Venezuela SA (PDVSA), Rockline Industries, Shaw Industries and
Tyler Pipe Company.
-- The Company's 86% owned subsidiary, Logility, Inc. (Nasdaq: LGTY),
announced that Alberto-Culver Company, an international manufacturer,
distributor, and marketer of leading personal care products, has selected
Logility Voyager Solutions(TM) to enable collaborative transportation planning
and management across its U.S. supply chain network. The Alberto-Culver
Company manufactures and markets leading or major brands including Alberto
VO5, St. Ives, Molly McButter, Mrs. Dash and TRESemme, and its subsidiary,
Sally Beauty Company, is the world's number one marketer of professional
beauty care products.
-- Rockline Industries, North America's largest supplier of coffee
filters and private label wipes, selected and deployed Logility Voyager
Solutions(TM) to optimize transportation operations throughout the company.
Rockline anticipates a minimum projected savings of eight percent per month in
overall reduced transportation costs as a result of its rapid, seven-week
implementation.
-- Farnell InOne, the international marketer and distributor of
electronic components, maintenance, repair and operations (MRO) products and
tailored services, has upgraded to Logility Voyager Solutions(TM) Version 6.5.
Logility Version 6.5 was live in less than one month, and will increase
visibility between Farnell InOne and other Premier Farnell Group companies, to
enable increased visibility throughout its supply chain and exceptionally high
levels of customer service.
-- Logility customers Huhtamaki, one of the world's largest packaging
companies, and Mercury Marine, a $1.6B global marine engine company, each made
industry presentations on how Logility Voyager Solutions help facilitate the
sales and operations planning (S&OP) process to deliver greater visibility and
quantifiable results across their entire businesses. Huhtamaki presented at a
UK-based consumer goods industry breakfast co-sponsored by IBM and Logility.
Mercury Marine spoke at the APICS International Conference held in Las Vegas,
Nevada.
-- The Company's New Generation Computing Inc. (NGC) announced that the
National Center for Employment of the Disabled (NCED), a manufacturer of
chemical-protection suits and battle-dress uniforms, has selected NGC's
Apparel Management Accounting System (AMAS) and The Production Manager (TPM)
software used in conjunction with Foxfire Technologies Corporation's Real-Time
Shop Floor Control System. The software will enable the company to integrate
business processes sales, distribution, finance, production planning,
administration, accounting, electronic data interchange, shop-floor control,
incentive payroll and other functions at its multiple locations onto one PC-
based system. In addition, the software will enable the company to perform
real-time collection and analysis of plant-level production data.
-- The Company announced that Avondale Mills, Inc. has licensed
components of its e-Intelliprise suite of Enterprise Resource Planning
software, and e-Forms, which allows paper-based documents to be converted to
electronic formats. Avondale Mills has been a long-time user of American
Software's zSeries(TM)-based Purchasing and Materials Management Systems,
which include Inventory Control, Requisitioning, Purchasing, Procurement
Matching, and Accounts Payable. Avondale's strategic direction was to move
their applications to IBM's iSeries(TM) platform, which precipitated a
software selection project.
-- The Company announced that Tyler Pipe Company has licensed RF Direct
Connect, a software application which enables bar code readers and data
collection devices to be directly connected to American Software's host ERP
system for performing inventory and production control transactions. Tyler
Pipe selected RF Direct Connect in order to improve the productivity of
warehousing personnel and to significantly reduce the data input transaction
error rate. RF Direct Connect provides a means to perform transactions in
real-time with editing and error-checking capabilities through the use of
Radio Frequency devices.
-- The Company announced that PDVSA a global energy company, one of the
world's largest petroleum exporters, exporting about 2.3 million barrels per
day of crude and products, with about 1.5 million barrels per day marketed to
the US, has licensed multiple copies of its ISeries ERP solutions for use in
the PDVSA oil lubrication plants throughout Venezuela.
Products and Technology
-- Logility announced the general availability of Logility Voyager
Solutions(TM) 7.0, the latest release of Internet-based products that support
real-time, global visibility of forecasts, orders, inventories, deliveries and
key performance indicators across the supply chain. Logility Voyager Solutions
7.0 help companies reduce supply chain costs, optimize inventory investments,
increase sales and improve customer service through innovative demand
management, optimized supply chain planning, synchronized production,
streamlined warehouse and improved transportation management.
-- Logility outlined plans to support full Radio Frequency Identification
(RFID) compliance across its supply chain planning, warehouse and logistics
products. Logility Voyager WarehousePRO(R) will initially support RFID
technology within the warehouse at the carton, pallet and container level to
streamline the shipment of goods to retail customers and accelerate the
receipt of products into distribution centers. Logility is working with
BISSELL, an international manufacturer of home cleaning products, to deploy a
rollout plan for RFID technology.
-- Logility and Plan4Demand, a Pittsburgh-based consulting services firm
specializing in supply chain management solutions, announced a business
alliance to provide additional implementation resources, customize best
practices training and prioritize business process improvement for the
deployment of Logility Voyager Solutions. Plan4Demand and Logility will work
together to help companies with distribution-intensive supply chains benefit
from faster implementations, and provide the capability to develop and deploy
highly customized training, a tangible tool for driving change management and
ensuring maximum self-sufficiency.
About American Software, Inc.
Headquartered in Atlanta, American Software develops, markets and supports
one of the industry's most comprehensive offering of integrated business
applications, including enterprise-wide, supply chain management, Internet
commerce, financial, warehouse management and manufacturing packages. e-
Intelliprise(TM) is a total ERP/supply chain management suite, which leverages
Internet connectivity and includes multiple manufacturing methodologies.
American Software owns 86% of Logility, Inc. (Nasdaq: LGTY), a leading
supplier of collaborative solutions to optimize the supply chain. Logility is
proud to serve such customers as ConAgra, Continental Tire North America,
Huhtamaki UK, McCormick & Company, Mill's Pride, Pernod-Ricard, Sigma Aldrich,
VF Corporation and xpedx. New Generation Computing Inc. (NGC), a wholly-owned
subsidiary of American Software, is a global software company that has 25
years of experience developing and marketing business applications for apparel
manufacturers, brand managers, retailers and importers. Headquartered in
Miami, NGC has sales offices worldwide and clients that include Dick's
Sporting Goods, Wilsons Leather, Kellwood, Hugo Boss, Russell Corp., Ralph
Lauren Childrenswear, Haggar Clothing Company, Maidenform, William Carter and
VF Corporation. For more information on the Company, contact: American
Software, 470 East Paces Ferry Rd., Atlanta, GA 30305 (800) 726-2946. (404)
261-4381. FAX: (404) 264-5206 INTERNET: www.amsoftware.com or
E-mail: ask@amsoftware.com
Forward Looking Statements
This press release contains forward-looking statements that are subject to
substantial risks and uncertainties. There are a number of factors that could
cause actual results to differ materially from those anticipated by statements
made herein. These factors include, but are not limited to, changes in
general economic conditions, technology and the market for the Company's
products and services including economic conditions within the e-commerce
markets; the timely availability and market acceptance of these products and
services; the effect of competitive products and pricing; the uncertainty of
the viability and effectiveness of strategic alliances; and the irregular
pattern of the Company's revenues. For further information about risks the
Company could experience as well as other information, please refer to the
Company's Form 10-K for the year ended April 30, 2003 and other reports and
documents subsequently filed with the Securities and Exchange Commission. For
more information, contact: Vincent C. Klinges, Chief Financial Officer,
American Software, Inc., (404) 264-5477 or fax: (404) 237-8868.
AMERICAN SOFTWARE, INC.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
October 31, October 31,
Pct Pct
2003 2002 Chg. 2003 2002 Chg.
Revenues:
License $2,933 $2,646 11% $5,573 $5,605 (1%)
Services & other 6,121 7,110 (14%) 11,967 13,615 (12%)
Maintenance 4,488 5,034 (11%) 9,092 10,128 (10%)
Total Revenues 13,542 14,790 (8%) 26,632 29,348 (9%)
Cost of Revenues:
License 1,133 851 33% 2,165 1,877 15%
Services & other 3,880 4,783 (19%) 7,873 9,337 (16%)
Maintenance 1,145 1,607 (29%) 2,390 3,006 (20%)
Total Cost of Revenues 6,158 7,241 (15%) 12,428 14,220 (13%)
Gross Margin 7,384 7,549 (2%) 14,204 15,128 (6%)
Operating expenses:
Research and development 1,939 2,019 (4%) 3,939 4,268 (8%)
Less: capitalized
development (873) (762) 15% (1,706) (1,571) 9%
Sales and marketing 2,573 2,826 (9%) 5,549 5,827 (5%)
General and administrative 2,108 2,192 (4%) 4,277 4,424 (3%)
Provision for doubtful
accounts 33 118 (72%) 121 246 (51%)
Total operating expenses 5,780 6,393 (10%) 12,180 13,194 (8%)
Operating income 1,604 1,156 39% 2,024 1,934 5%
Interest income 284 316 (10%) 577 665 (13%)
Other, net 447 121 269% 912 (37) nm
Minority interest (28) (30) (7%) (78) (11) 609%
Income from continuing
operations before income
taxes 2,307 1,563 48% 3,435 2,551 35%
Income taxes - - - - - -
Income from continuing
operations 2,307 1,563 48% 3,435 2,551 35%
Discontinued Operations:
Gain on sale of discontinued
segment - 463 - - 925 -
Net Earnings $2,307 $2,026 14% $3,435 $3,476 (1%)
Earnings per common share:
Basic:
Continuing operations $0.10 $0.07 43% $0.15 $0.11 36%
Discontinued operations - 0.02 - - 0.04 -
0.10 0.09 11% 0.15 0.15 0%
Diluted:
Continuing operations $0.09 $0.07 29% $0.14 $0.11 27%
Discontinued operations - 0.02 - - 0.04 -
0.09 0.09 0% 0.14 0.15 (7%)
Weighted average common shares
outstanding
Basic 22,672 22,483 22,509 22,554
Diluted 24,642 23,029 24,659 23,243
nm- not meaningful
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
October 31,
2003 2002
Cash and Short & Long term investments $62,900 $57,258
Accounts Receivable:
Billed 5,985 6,130
Unbilled 2,125 3,898
Total Accounts Receivable, net 8,110 10,028
Prepaids & Other 1,809 1,787
Other Assets 21,514 23,584
Total Assets $94,333 $92,657
Accounts Payable $1,048 $944
Other Current Liabilities 5,613 8,234
Deferred Revenues 8,636 9,466
Other Noncurrent Liabilities - 10
Minority Interest 4,101 4,038
Shareholders' Equity 74,935 69,665
Total Liabilities & Shareholders' Equity $94,333 $92,357
SOURCE American Software, Inc.
-0- 11/18/2003
/CONTACT: Vincent C. Klinges, Chief Financial Officer of American
Software, Inc., +1-404-264-5477/
/Company News On-Call: http://www.prnewswire.com/comp/048263.html/
/Web site: http://www.amsoftware.com /
(AMSWA LGTY)
CO: American Software, Inc.;
ST: Georgia
IN: CPR MLM
SU: ERN