EXHIBIT 99.1
FOR IMMEDIATE RELEASE
FINAL
Financial Information Press Contact:
Vincent C. Klinges
Chief Financial Officer
American Software, Inc.
(404) 264-5477
American Software Reports Preliminary First Quarter
of Fiscal Year 2009 Results
Company Reports 30th Consecutive Quarter of Profitability
ATLANTA (September 4, 2008) American Software, Inc. (NASDAQ: AMSWA) today
reported financial results for the first quarter of fiscal year 2009, achieving
30 consecutive quarters of profitability.
Key first quarter financial highlights include:
o Total revenues for the quarter ended July 31, 2008 were $19.2 million,
a decrease of 12% over the first quarter of fiscal 2008;
o Software license fees for the quarter ended July 31, 2008 were $2.7
million, a decrease of 46% over the first quarter of fiscal 2008;
o Services and other revenues for the first quarter ended July 31, 2008
were $9.3 million, a decrease of 5% over the first quarter of fiscal
2008;
o Maintenance revenues for the quarter ended July 31, 2008 were $7.1
million, an increase of 5% over the first quarter of fiscal 2008; and
o Operating earnings for the quarter ended July 31, 2008 were
approximately $1.3 million, a decrease of 50% compared to operating
earnings for the first quarter of fiscal 2008.
GAAP (Generally Accepted Accounting Principles) net earnings were
approximately $610,000 or $0.02 per fully diluted share for the first quarter of
fiscal 2009 compared to $2.0 million or $0.07 per fully diluted share for the
same period last year. Adjusted net earnings, which excludes stock option
compensation expense and an acquisition-related amortization of intangibles, for
the quarter ended July 31, 2008 were $795,000 or $0.03 per fully diluted share
compared to $2.2 million or $0.08 per fully diluted share for the same period
last year.
The Company is including adjusted net earnings and adjusted net earnings
per diluted 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.
American Software First Quarter of Fiscal Year 2009 Results Page 2
The overall financial condition of the Company remains strong, with cash
and investments of approximately $73.7 million and no debt as of July 31, 2008.
This is approximately a $1.9 million decrease when compared to July 31, 2007.
During the quarter, the Company repurchased 86,239 shares of its common stock
for approximately $504,000 under its authorized stock repurchase program and
paid approximately $2.3 million in dividends. Also during the quarter, the
Company's majority-owned subsidiary, Logility, Inc., repurchased 39,620 shares
of its own common stock for approximately $297,000 under its authorized stock
repurchase program.
"We are pleased to achieve our 30th consecutive quarter of profitability
despite the general market conditions and global economic uncertainty that are
impacting capital expenditures," stated James C. Edenfield, President and CEO of
American Software. "We will continue to use our financial strength to reinvest
in the Company as well as provide a tangible benefit to our shareholders with a
quarterly dividend."
"As more companies seek to decrease costs and leverage global suppliers and
manufacturing partners, the task of managing the supply chain grows
exponentially with each partner," continued Edenfield. "In order to keep pace
and achieve needed visibility, companies are seeking the comprehensive supply
chain solutions in our product portfolio which provide the ability to reduce
costs, optimize production and collaborate in real-time."
Additional highlights for the first quarter of fiscal year 2009 include:
Customers and Channels:
o Notable new and existing customers placing orders with the Company in the
first quarter include: the 3M Company, Coty, Galderma Laboratories, Ivory
International, Jerry Leigh Entertainment, Meyer Corporation, RG Barry, RG
Brands, Roomstore Furniture, Siemens Healthcare Diagnostics, Vaughan Foods
and Westcon Group North America.
o During the quarter, software license agreements were signed with customers
located in seven countries including: Australia, Canada, Japan, Kazakhstan,
the Netherlands, the United Kingdom and the United States.
o Logility held the Connections 2008: Saddle up for Supply Chain Success
conference in San Antonio, TX. The conference presented the latest trends,
technologies and competitive strategies for supply chain professionals and
provided interactive educational opportunities and networking for Logility
customers with industry leaders and analysts.
o Logility announced that its customer Intertape Polymer Group received the
prestigious 2008 Sailing to New Heights with Logility Award for supply
chain excellence. Intertape Polymer Group implemented Logility Voyager
Solutions(TM) to increase visibility into customer demand and help build a
more efficient supply chain. As a result, Intertape Polymer has reduced
total inventory by $40 million year-over-year, improved fill rates from
less than 70% to 95%, increased forecast accuracy from 56% to 86%, built
stronger internal collaboration and achieved higher customer service
levels.
o Logility announced the 2008 Logility Leadership Award recipients: A.O.
Smith Water Products, Basic American Foods, Malt-O-Meal and Shaw
Industries. The annual award program recognizes a select group of companies
who have been innovative in their efforts to develop and implement
collaborative supply chain processes that significantly improve operational
performance through the deployment of Logility Voyager Solutions. This
year's winners demonstrated success in building collaboration and
visibility within their supply chains which has resulted in tangible
business benefits including inventory reduction, improved forecast accuracy
and higher customer service levels.
American Software First Quarter of Fiscal Year 2009 Results Page 3
o Managing Automation magazine honored Logility customer Intertape Polymer
Group with their High Achiever Award, the highest recognition given for the
Supply Network Mastery category at the 2008 Progressive Manufacturing
Awards. Intertape Polymer Group was one of 50 manufacturers recognized as a
Progressive Manufacturer by Managing Automation and one of eight to receive
a top award in a category of distinction. Intertape Polymer Group was
awarded the High Achiever Award for successfully restructuring their supply
chain processes to alleviate challenges that arose as a result of rapid
growth through acquisitions. Intertape Polymer Group's new supply chain
structure, supported by Logility Voyager Solutions, has resulted in
increased fill rates, higher forecast accuracy and reduced inventory.
Technology and Company:
o Demand Management, Inc., a wholly-owned subsidiary of Logility, announced
it has fulfilled the requirements for the Microsoft Certified Partner
designation with the ISV Competency. The Company's popular Demand
Solutions(R) forecasting and inventory planning products have successfully
passed the Software Solution Test for Microsoft Dynamics NAV 5.0 and have
met the ISV competency requirements.
o Fortune Small Business included Logility in its annual listing of the
Fastest-Growing Small Public Companies in America for the second
consecutive year. The FSB 100 ranked Logility in the Top 25 of the list of
100 companies for 2008. Companies are ranked based on growth in earnings
per share, revenues and stock performance over the past three years.
According to Fortune Small Business, more than half of the companies that
were listed in 2007 did not make the 2008 list. Logility was ranked for the
first time in 2007 at 70 and this year increased its ranking to 24.
o Logility was named to Aberdeen Group's listing of the Top 100 Most
Influential Technology Vendors recently showcased in the Aberdeen Annual
State of the Market Report. The Top 100 recognizes the technology vendors
that have excelled at providing value to the business community. Logility
was selected for inclusion in the list of software, hardware and service
providers that featured several well-known global brands such as Microsoft,
IBM, Dell and Logility customer Verizon Wireless. Aberdeen Group's
selection of the Top 100 was based on five years of Aberdeen's market
research which included data gathered from over 4,600 enterprises, and
additional insights from 35,000 senior-level interviews as well as
Aberdeen's 2.5 million readers.
o Logility was named a 2008 Great Supply Chain Partner by Global Logistics &
Supply Chain Strategies (GL&SCS) magazine. It is the fifth year since the
award's inception in 2003 that Logility has received the prestigious
recognition for its success helping companies solve supply chain
challenges. This year nearly 1,500 companies were nominated and included
various types of supply chain vendors across the globe. Only 100 vendors
were named a 2008 Great Supply Chain Partner.
o New Generation Computing (NGC(R)), a wholly-owned subsidiary of the
Company, announced that Inbound Logistics magazine selected NGC as one of
the Top 100 Logistics IT Companies for 2008. This prestigious recognition
is designed to provide supply chain and logistics executives with a
complete guide to the industry's best-in-class technology and service
providers.
o New Generation Computing (NGC), the Company's wholly-owned subsidiary,
announced the integration of NGC's RedHorse(R) apparel ERP software with
the Demand Solutions(R) planning suite. RedHorse is a comprehensive,
apparel-specific ERP system that allows companies to easily view real-time
business data and monitor Key Performance Indicators (KPIs) such as sales,
profits, inventory, accounts receivable, accounts payable, and other
critical business functions. The Demand Solutions planning suite
encompasses the full spectrum of supply chain management, including sales
and operations planning, forecasting, collaboration, inventory management,
manufacturing planning and retail planning.
American Software First Quarter of Fiscal Year 2009 Results Page 4
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, 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, 2008 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 NGC is a
registered trademark 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 First Quarter of Fiscal Year 2009 Results Page 5
AMERICAN SOFTWARE, INC.
Consolidated Statements of Operations Information
(In thousands, except per share data)
(Unaudited)
First Quarter Ended
-------------------------------
July 31,
Pct
2008 2007 Chg.
---------- --------- --------
Revenues:
License $ 2,742 $ 5,120 (46%)
Services & other 9,331 9,787 (5%)
Maintenance 7,125 6,815 5%
---------- --------- --------
Total Revenues 19,198 21,722 (12%)
---------- --------- --------
Cost of Revenues:
License 1,288 1,685 (24%)
Services & other 6,008 6,823 (12%)
Maintenance 1,814 1,761 3%
---------- --------- --------
Total Cost of Revenues 9,110 10,269 (11%)
---------- --------- --------
Gross Margin 10,088 11,453 (12%)
---------- --------- --------
Operating expenses:
Research and development 2,336 2,435 (4%)
Less: capitalized development (507) (525) (3%)
Sales and marketing 3,796 3,392 12%
General and administrative 3,094 3,517 (12%)
Acquisition related amortization of intangibles 88 88 0%
---------- --------- --------
Total Operating Expenses 8,807 8,907 (1%)
---------- --------- --------
Operating Earnings 1,281 2,546 (50%)
---------- --------- --------
Interest Income (expense) & Other, Net (136) 916 nm
---------- --------- --------
Earnings Before Income Taxes and Minority Interest 1,145 3,462 (67%)
Income Tax Expense 448 1,271 (65%)
Minority Interest Expense 87 236 (63%)
---------- --------- --------
Net Earnings $ 610 $ 1,955 (69%)
========== ========= ========
Earnings per common share: (1)
Basic $ 0.02 $ 0.08 (75%)
========== ========= ========
Diluted $ 0.02 $ 0.07 (71%)
========== ========= ========
Weighted average number of common shares outstanding:
Basic 25,393 25,126
Diluted 25,984 26,819
Reconciliation of Adjusted Net Earnings:
Net Earnings $ 610 $ 1,955
Acquisition related amortization of intangibles (2) 54 87
Stock-based compensation (2) 131 179
---------- --------- --------
Adjusted Net Earnings $ 795 $ 2,221 (64%)
========== ========= ========
Adjusted Net Earnings per Diluted Share $ 0.03 $ 0.08 (63%)
========== ========= ========
(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 $0.02 and $0.08 for the three
months ended July 31, 2008 and 2007.
(2) - Tax affected
nm- not meaningful
American Software First Quarter of Fiscal Year 2009 Results Page 6
AMERICAN SOFTWARE, INC.
Consolidated Balance Sheet Information
(In thousands)
(Unaudited)
July 31, April 30,
2008 2008
-------------- ------------
Cash and Short-term investments $ 73,704 $ 76,141
Accounts Receivable:
Billed 11,104 12,563
Unbilled 2,840 3,311
-------------- ------------
Total Accounts Receivable,net 13,944 15,874
Prepaids & Other 2,866 2,946
-------------- ------------
Current Assets 90,514 94,961
PP&E, net 7,277 6,903
Capitalized Software, net 4,563 4,657
Goodwill 11,669 11,912
Other Intangibles, net 1,262 1,586
Non-current Assets 191 198
-------------- ------------
Total Assets $ 115,476 $ 120,217
============== ============
Accounts Payable $ 709 $ 1,578
Accrued Compensation and Related costs 1,705 2,260
Other Current Liabilities 3,606 3,694
Dividend Payable 2,283 2,286
Deferred Tax Liability 610 640
Deferred Revenues 15,315 16,441
-------------- ------------
Current Liabilities 24,228 26,899
Deferred Tax Liability 1,076 1,202
Minority Interest 5,781 5,621
Shareholders' Equity 84,391 86,495
-------------- ------------
Total Liabilities & Shareholders' Equity $ 115,476 $ 120,217
============== ============