EXHIBIT 99.1
American Software Reports Preliminary Second Quarter of Fiscal Year 2008
Results
Operating Earnings Increase 56% driven by 17% Growth in Revenues
ATLANTA, Dec. 6 /PRNewswire-FirstCall/ -- American Software, Inc. (Nasdaq:
AMSWA) today reported financial results for the second quarter of fiscal year
2008, achieving 27 consecutive quarters of profitability.
Key second quarter financial highlights include:
* Total revenues for the quarter ended October 31, 2007 were $23.6
million, an increase of 17% over the second quarter of fiscal 2007;
* Software license fees for the quarter ended October 31, 2007 were
$4.8 million, an increase of 11% over the second quarter of fiscal
2007;
* Services and other revenues for the second quarter ended October 31,
2007 were $11.6 million; an increase of 25% over the second quarter
of fiscal 2007;
* Maintenance revenues for the quarter ended October 31, 2007 were
$7.2 million, an increase of 9% over the second quarter of fiscal
2007; and
* Operating earnings for the quarter ended October 31, 2007 were $2.8
million, an increase of 56% over the second quarter of fiscal 2007.
GAAP net earnings were approximately $2.5 million or $0.10 per fully
diluted share for the second quarter of fiscal 2008 compared to $1.8 million or
$0.07 per fully diluted share for the same period last year. Adjusted net
earnings, which excludes stock option compensation expense and acquisition-
related amortization of intangibles, were $2.8 million or $0.11 per fully
diluted share for the quarter ended October 31, 2007, compared to $2.1 million
or $0.08 per fully diluted share for the same period last year.
Total revenues for the six months ended October 31, 2007 were $45.3
million or a 12% increase compared to $40.4 million for the comparable period
last year. Software license fees for the six-month period were $9.9 million or a
14% increase compared to $8.7 million during the same period last year. Services
and other revenues were $21.4 million or a 16% increase compared to $18.5
million in the same period last year. Maintenance revenues were $14.0 million or
a 6% increase compared to $13.2 million in the same period last year. For the
six months ended October 31, 2007, the Company reported operating earnings of
approximately $5.3 million, a 54% increase compared to operating income of $3.4
million for the same period last year. GAAP net earnings were approximately $4.5
million or $0.17 per fully diluted share for the six months ended October 31,
2007 compared to $3.1 million or $0.12 per fully diluted share for the same
period last year. Adjusted net earnings year to date as of October 31, 2007,
which excludes stock option compensation expense and acquisition-related
amortization of intangibles, were $5.0 million or $0.19 earnings per fully
diluted share compared to $3.7 million or $0.14 earnings per fully diluted share
for the same period last year.
The Company is including adjusted net earnings and adjusted net earnings
per share in the summary financial information provided with this press release
as supplemental information relating to its operating results. This financial
information is not in accordance with, or an alternative for, GAAP and may be
different from non-GAAP net earnings and non-GAAP per share measures used by
other companies. The Company believes that this presentation of adjusted net
earnings and adjusted net earnings per share provides useful information to
investors regarding certain additional financial and business trends relating to
its financial condition and results of operations.
The overall financial condition of the Company remains strong, with cash
and investments of approximately $76.4 million and no debt as of October 31,
2007. This is an increase in cash and investments of approximately $11.3 million
compared to October 31, 2006.
"American Software posted a strong performance for the second quarter of
fiscal 2008, delivering an impressive 56% growth in operating earnings fueled by
17% growth in total revenues," stated James C. Edenfield, president and CEO of
American Software. "With 27 consecutive quarters of profitability and positive
cash flow, we will continue to use our financial strength to reinvest in the
Company and expect to provide a tangible benefit to our shareholders with a
quarterly dividend."
Additional highlights for the second quarter of fiscal year 2008 include:
Customers:
* Notable new and existing customers placing orders with the Company
in the second quarter include: Atek Medical, Caremark International,
CooperVision, Cypress Medical, Henkel North America, Interface
Modernform, Nike, PPG Refinish, Premier Farnell, Electrolux, Modern
Amusement, SanMar Corporation, SEPTA, Stiefel Laboratories, and
Whatman International.
* During the quarter, software license agreements were signed with
customers located in 13 countries including; Australia, Brazil,
Canada, China, France, Germany, Italy, Malaysia, South Africa,
Switzerland, Thailand, the United Kingdom, and the United States.
* New Generation Computing Inc. (NGC), a wholly owned subsidiary of
the Company, announced that Parigi Group, a leader in apparel for
fashion conscious kids and tweens, is implementing NGC's e-PLM and
e-SPS(R) software to manage its worldwide product development and
supply chain operations. With offices in New York and Hong Kong and
factories throughout the world, Parigi Group sought a solution that
would provide end-to-end visibility and enhance global
collaboration, allowing the company to improve time to market and
manage its increasingly complex, fast-paced business. Parigi Group
found the ideal solution with e-PLM and e-SPS, an integrated
application for Product Development and Global Sourcing that
provides real-time visibility into each step of the product
lifecycle.
* NGC announced that Modern Amusement has implemented its RedHorse(R)
software, a complete ERP solution that is designed specifically for
Fashion, Apparel, Retail and Footwear. NGC's rapid implementation
services enabled Modern Amusement to go live in four weeks with key
business functions including purchasing and receiving, customer
order processing, invoicing and accounts receivable, inventory
control, and EDI. Modern Amusement, a premier designer of men's and
women's sportswear, swimwear, and accessories, chose RedHorse based
on its out-of-the-box, industry-specific functionality combined with
ease of use and comprehensive reporting capabilities.
* NGC announced that Bombay Industries and Alex Cannon have
implemented NGC's RedHorse(R) software, a complete ERP solution that
is designed specifically for Fashion, Apparel and Footwear. The
system was deployed in production at both companies in 45 days. Alex
Cannon, a leading men's casual sportswear brand sold in better
department and specialty stores, selected RedHorse in May 2007 after
extensive vendor evaluation.
* American Software USA announced that Southeastern Pennsylvania
Transportation Authority (SEPTA) has licensed the Company's
web-based procurement, requisitioning and forms systems. These
systems are fully integrated with the SEPTA ERP system.
* Logility customer Intertape Polymer Group (IPG) was featured along
with Logility in an APICS webcast "Forecasting a Profitable Supply
Chain". The webcast focused on how companies can improve forecast
accuracy to increase supply chain profitability and discussed how
IPG improved forecast accuracy, accelerated inventory turns and
increased profitability with the help of Logility Voyager Solutions.
"Forecasting a Profitable Supply Chain" was also a featured
presentation at the APICS national conference held October 21-23,
2007.
* Logility's Supply Chain Power Hour "Buckle Up Transportation
Savings" was the latest webcast in Logility's popular supply chain
educational series. The webcast featured Logility customer Rockline
Industries and Ian Hobkirk, senior analyst, logistics, AberdeenGroup
who provided participants with the latest insights on centralizing
transportation management to reduce costs and improve overall supply
chain performance.
* Logility and Shaw Industries were featured in an APICS webcast on
Sales and Operations Planning. The webcast, "S&OP: Turning Blame
into Gain", focused on how companies can compete more effectively by
synchronizing corporate planning processes with an integrated S&OP
planning solution.
Products and Technology:
* Demand Management, a wholly-owned subsidiary of Logility and a
global resource for managing the supply chain, announced the
addition of service parts management capabilities to its
replenishment software solution. These capabilities automate the
process of planning and aligning service parts inventories,
resources, and processes to ensure optimal customer service and
response with minimal risk and cost.
* Logility announced its new Carrier On-Boarding Service to accelerate
implementations of Voyager Transportation Planning and Management.
The new Carrier Portal, EDI and Carrier On-boarding capabilities
streamline the business processes and communication with carriers
and further accelerates rapid ROI by enabling visibility into loads,
tenders, bids, shipment status information and freight payment.
* American Software was named to Software Magazine's annual Software
500, a revenue-based ranking of the world's largest software and
services suppliers. American Software has consistently improved its
position for the past three years.
About American Software, Inc.
Headquartered in Atlanta, American Software develops, markets and supports
one of the industry's most comprehensive offerings of integrated business
applications, including supply chain management, Internet commerce, financial,
warehouse management and manufacturing packages. e-Intelliprise(TM) is an
ERP/supply chain management suite, which leverages Internet connectivity and
includes multiple manufacturing methodologies. American Software owns 88% of
Logility, Inc. (Nasdaq: LGTY), a leading provider of collaborative supply chain
solutions that help small, medium, large and Fortune 1000 companies realize
substantial bottom-line results in record time. Logility is proud to serve such
customers as Avery Dennison Corporation, Brown Shoe Company, BP (British
Petroleum), Hyundai Motor America, Leviton Manufacturing Company, McCain Foods,
Pernod-Ricard, Sigma Aldrich and Under Armour Performance Apparel. 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's worldwide customers
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
or (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
Company's ability to satisfy in a timely manner all SEC required filings and the
requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and
regulations adopted under that Section; the challenges and risks associated with
integration of acquired product lines and companies; 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, 2007 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.
e-Intelliprise is a trademark of American Software, Logility is a
registered trademark and Logility Voyager Solutions is a trademark of Logility,
Demand Solutions is a registered trademark of Demand Management, and REDHORSE is
a trademark of New Generation Computing. Other products mentioned in this
document are registered, trademarked or service marked by their respective
owners.
AMERICAN SOFTWARE, INC.
Consolidated Statements of Operations Information
(In thousands, except per share data)
(Unaudited)
Second Quarter Ended Six Months Ended
--------------------------------- --------------------------------
October 31, October 31,
Pct Pct
2007 2006 Chg. 2007 2006 Chg.
-------- -------- --------- -------- -------- --------
Revenues:
License $ 4,806 $ 4,333 11% $ 9,926 $ 8,706 14%
Services & other 11,634 9,280 25% 21,421 18,543 16%
Maintenance 7,179 6,612 9% 13,994 13,157 6%
-------- -------- -------- -------- -------- --------
Total Revenues 23,619 20,225 17% 45,341 40,406 12%
-------- -------- -------- -------- -------- --------
Cost of Revenues:
License 1,550 1,605 (3%) 3,235 3,059 6%
Services & other 8,450 6,300 34% 15,273 12,944 18%
Maintenance 1,880 1,791 5% 3,641 3,568 2%
-------- -------- -------- -------- -------- --------
Total Cost of Revenues 11,880 9,696 23% 22,149 19,571 13%
-------- -------- -------- -------- -------- --------
Gross Margin 11,739 10,529 11% 23,192 20,835 11%
-------- -------- -------- -------- -------- --------
Operating expenses:
Research and development 2,459 2,313 6% 4,894 4,628 6%
Less: capitalized development (630) (587) 7% (1,155) (1,183) (2%)
Sales and marketing 3,820 3,523 8% 7,212 7,040 2%
General and administrative 3,244 3,427 (5%) 6,762 6,735 0%
Acquisition related amortization of intangibles 87 87 0% 174 175 (1%)
-------- -------- -------- -------- -------- --------
Total Operating Expenses 8,980 8,763 2% 17,887 17,395 3%
-------- -------- -------- -------- -------- --------
Operating Earnings 2,759 1,766 56% 5,305 3,440 54%
-------- -------- -------- -------- -------- --------
Interest Income & Other, Net 1,664 1,466 14% 2,580 2,071 25%
-------- -------- -------- -------- -------- --------
Earnings Before Income Taxes and Minority Interest 4,423 3,232 37% 7,885 5,511 43%
Income Tax Expense 1,665 1,273 31% 2,936 2,178 35%
Minority Interest Expense 214 138 55% 450 265 70%
-------- -------- -------- -------- -------- --------
Net Earnings $ 2,544 $ 1,821 40% $ 4,499 $ 3,068 47%
======== ======== ======== ======== ======== ========
Earnings per common share: (1)
Basic: $ 0.10 $ 0.07 43% $ 0.18 $ 0.13 38%
======== ======== ======== ======== ======== ========
Diluted: $ 0.10 $ 0.07 43% $ 0.17 $ 0.12 42%
======== ======== ======== ======== ======== ========
Weighted average number of common shares outstanding:
Basic 25,530 24,534 25,328 24,529
Diluted 26,658 25,645 27,080 25,628
Reconciliation of Adjusted Net Earnings:
Net Earnings $ 2,544 $ 1,821 $ 4,499 $ 3,068
Acquisition related amortization of intangibles (2) 87 87 174 175
Stock-based compensation (2) 180 217 359 442
-------- -------- -------- -------- -------- --------
Adjusted Net Earnings $ 2,811 $ 2,125 32% $ 5,032 $ 3,685 37%
======== ======== ======== ======== ======== ========
Adjusted Net Earnings per Diluted Share $ 0.11 $ 0.08 38% $ 0.19 $ 0.14 36%
======== ======== ======== ======== ======== ========
(1) - Basic per share amounts are the same for Class A and Class B shares.
Diluted per share amounts for Class A shares are shown above. Diluted per share
for Class B shares under the two-class method are $0.10 and $0.07 for the three
months ended October 31, 2007 and 2006 and $0.18 and $0.13 for the six months
ended October 31, 2007 and 2006.
(2) - Not income tax affected
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AMERICAN SOFTWARE, INC.
Consolidated Balance Sheet Information
(In thousands)
(Unaudited)
October 31, April 30,
2007 2007
----------- ---------
Cash and Short-term investments $ 76,412 $ 72,769
Accounts Receivable:
Billed 12,027 12,489
Unbilled 5,238 3,860
----------- ---------
Total Accounts Receivable,net 17,265 16,349
Prepaids & Other 2,985 2,560
----------- ---------
Current Assets 96,662 91,678
PP&E, net 6,909 7,080
Capitalized Software, net 5,997 6,137
Goodwill 11,503 11,210
Other Intangibles 1,264 1,472
Non-current Assets 228 239
----------- ---------
Total Assets $ 122,563 $ 117,816
=========== =========
Accounts Payable $ 1,589 $ 1,138
Other Current Liabilities 6,377 8,853
Dividend Payable 2,300 1,984
Deferred Income Tax Liability 846 911
Deferred Revenues 15,269 15,441
----------- ---------
Current Liabilities 26,381 28,327
Deferred Income Tax Liability 1,579 1,697
Minority Interest 5,712 5,061
Shareholders' Equity 88,891 82,731
----------- ---------
Total Liabilities & Shareholders' Equity $ 122,563 $ 117,816
=========== =========