Exhibit 99.1
AMERICAN SOFTWARE REPORTS THIRD QUARTER FISCAL YEAR 2005 RESULTS
COMPANY ACHIEVES SIXTEENTH CONSECUTIVE QUARTER OF PROFITABILITY,
REVENUE INCREASES 21% COMPARED TO PRIOR YEAR QUARTER
ATLANTA, March 3 /PRNewswire-FirstCall/ -- American Software, Inc. (Nasdaq:
AMSWA) today reported financial results for the third quarter of fiscal year
2005, marking its sixteenth consecutive quarter of profitability.
Key financial highlights for American Software include:
- Software license fees for the quarter ended January 31, 2005 were $4.1
million, an increase of 6% over the third quarter of fiscal 2004;
- Services and other revenues for the quarter ended January 31, 2005
were $8.5 million, an increase of 36% over the third quarter of fiscal
2004;
- Maintenance revenue fees for the quarter ended January 31, 2005 were
$5.1 million, an increase of 11% over the third quarter of fiscal
2004;
- Total revenues for the quarter ended January 31, 2005 were $17.7
million, an increase of 21% over the third quarter of fiscal 2004;
- Total cash and investments as of January 31, 2005 were $56.9 million,
a sequential increase of $1.9 million compared to October 31, 2004.
GAAP net income was $1.4 million or $0.05 per fully diluted share for the
third quarter of fiscal 2005 compared to $2.1 million or $0.08 per fully diluted
share for the third quarter of fiscal 2004. Adjusted net income for the quarter
ended January 31, 2005, which excludes the net loss of Demand Management, was
$1.9 million or $0.08 per fully diluted share compared to $2.1 million or $0.08
for the same period last year.
On September 30, 2004, Logility, our majority owned subsidiary, purchased
certain assets and the distribution channel of privately-held Demand Management,
Inc. (DMI), a St. Louis-based provider of supply chain planning systems marketed
under the Demand Solutions brand, for approximately $8.7 million in cash. The
third quarter fiscal 2005 was the first full quarter to include Demand
Management's results. DMI reported a $544,000 loss for the quarter. The loss was
primarily due to the purchase accounting requirement to fair value DMI's
deferred maintenance, which lowers the maintenance revenue for GAAP reporting.
For the third quarter ended January 31, 2005, DMI was operating cash flow
positive by approximately $750,000.
Total revenues for the nine months ended January 31, 2005 were $46.2
million compared to $41.3 million for the same period last year. Software
license fees for the nine months ended January 31, 2005 were $9.2 million
compared to $9.4 million for the same period last year. Services and other
revenues for the nine months ended January 31, 2005 were $23.0 million compared
to $18.2 million for the same period last year. Maintenance revenues for the
nine months ended January 31, 2005 were $14.1 million compared to $13.6 million
for the same period last year. For the nine months ended January 31, 2005, the
Company reported a GAAP net income of $4.0 million, or $0.16 per diluted share
compared to a GAAP net income of $5.5 million or $0.22 per fully diluted share
for the same period in the prior year. Adjusted net income for nine months ended
January 31, 2005, which excludes the impact of the Demand Management acquisition
was $4.8 million or $0.19 per fully diluted share compared to $5.5 million or
$0.22 per fully diluted share for the same period last year. Total DMI revenues
for the three months and nine months ended January 31, 2005 were $2.0 million
and $2.4 million.
The Company is including adjusted net income and adjusted net income per
share in the summary financial information provided with this press release as
additional, 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 income and non-GAAP per share measures used
by other companies. The company believes that this presentation of adjusted net
income and adjusted net income per share provides useful information to
investors regarding certain additional financial and business trends relating to
its financial condition and results.
"American Software delivered an impressive 21% increase in revenue compared
to the same quarter of last year. We are pleased to combine this substantial
increase in revenue with our sixteenth consecutive quarter of profitability and
positive cash flow," stated James C. Edenfield, president and CEO of American
Software. "By leveraging our financial strength, the success of our customers
and the continued commitment of our talented employees, we intend to sustain our
business model to capitalize on an improving economy."
Additional highlights for the third quarter fiscal year 2005 include:
Customers
- Notable new and existing customers placing orders in the third quarter
include: ACCO Canada, Associated Grocers of Florida, Broders Brothers,
Brown Shoe, Caremark, Dick's Sporting Goods, Eaton Corporation, Hooker
Furniture Corporation, Hyundai Motor Australia, Johnson Brothers,
Kenny Manufacturing, Kentucky Derby Hosiery, Parker Hannifin, SAKS
Incorporated and VF Corporation.
- During the quarter, software license agreements were signed with
customers located in 11 countries including Australia, Brazil, Canada,
China, Germany, Indonesia, Ireland, Mexico, New Zealand, the United
Kingdom and the United States.
- Kellwood Company's Koret announced selection of NGC's e-Quality to
monitor and maintain quality control of Koret's global production of
women's sportswear. Koret planned to install the software at its
Oakland, CA and Miami, FL facilities in January 2005. The software
will complement NGC's e-SPS modules that Koret began using in 2001 and
provide the company with end-to-end visibility of its global product
development and sourcing functions.
- Caremark Inc., a leading provider of prescription benefit services in
the United States, upgraded its entire suite of American Software ERP
and supply chain planning applications to run on the IBM zSeries(R)
1C9 server platform.
- Robert Horne Group, the UK's leading supplier of paper, board and
plastics to the visual communications industry, upgraded to Logility
Voyager Solutions(TM) Version 7.0 using minimal resources. The
solution will provide additional demand planning functionality
including improved collaboration among internal departments and with
suppliers.
- AD Plastik, a Croatian plastics manufacturer that serves automotive
and consumer goods markets, implemented Logility Voyager Solutions for
improvements in manufacturing planning, inventory, labor reductions
and improved customer service.
- Smead Manufacturing Co., a leading manufacturer and distributor of
paper filing supplies and records management software, was named a
finalist for Managing Automation magazine's first annual Progressive
Manufacturing Awards for supply chain mastery. Smead used Logility
Voyager Solutions to support a significant growth in revenue while
increasing inventory turns, achieving higher customer order fill
rates, increasing visibility of available inventory, and improving
collaboration with customers as well as internal departments.
- In the Top 100 Consumer Goods Registry, an annual survey by Consumer
Goods Technology magazine, Logility supply chain solutions are used by
33 percent of the companies that made the cut. Logility Voyager
Solutions or Demand Solutions are used by:
* 60 percent of the top 10 health and pharmacy companies
* 45 percent of the top 20 consumer packaged goods companies
* 35 percent of the top 20 food companies
* 35 percent of the top 20 footwear and apparel companies
* 30 percent of the top 10 health and beauty companies
* 30 percent of the top 10 housewares and appliances companies
* 15 percent of the top 20 beverage companies
Products and Technology
- Logility announced general availability of Radio Frequency
Identification (RFID) capabilities in Logility Voyager
WarehousePRO(R). The latest release of Voyager WarehousePRO includes
built-in support of RFID technology at the carton, pallet, and
container level. Logility's built-in approach enables customers to
implement and upgrade quickly, limits custom integration, delivers
immediate benefits and lays the foundation for future expansion of
RFID to supply chain planning applications. RFID support is included
in the standard WarehousePRO product, and is available at no
additional cost to Logility customers active on maintenance programs.
- Demand Management, Inc., a wholly owned subsidiary of Logility,
announced the availability of Demand Solutions Collaborate for
seamless integration of supply chain information. The Web-based
addition to DS One simplifies collaboration between buyers and sellers
to make demand- driven supply networks a reality.
- New Generation Computing Inc., a wholly owned subsidiary of American
Software Inc., introduced the 2005 version of e-SPS, web-based
strategic sourcing software that helps retailers, manufacturers, brand
managers and importers increase speed to market and gain end-to-end
visibility over global product and sourcing functions. The 2005
version of e-SPS features enhanced user functions and reporting
capabilities with its 11 software modules: e-Product Development,
e-RFQ's & Bids, e-Pre Production, e-Production Tracking,
e-Collaboration, e-Pack, e-Shipment Tracking, e-Exceptions, e-Quality,
e-Executive Information Systems and Reporting, and Event Tracking and
Management System. Current e-SPS users include VF Corporation,
Maidenform Inc., Wilsons Leather, Dick's Sporting Goods Inc., Kellwood
Company, Russell Corp., Gold Toe Brands Inc. and S. Schwab Company.
- Logility announced the details of Connections 2005: Catch the Wave-
Supply Chain ROI conference to be held March 16-18, 2005, in Atlanta,
Georgia, at the InterContinental Hotel in Buckhead. Scheduled company
speakers include Remy International, Williamson-Dickie Manufacturing,
SKF Italy, Tiffany & Co., Potlatch, A.O. Smith, Logility and others.
- RIS News magazine named Logility to its Leaderboard 2004, an elite
gathering of the retail industry's top software vendors. The rankings
are based on results from a reader survey conducted in late 2004.
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 87% 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, Bissell, BP (British Petroleum),
Huhtamaki UK, 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
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, 2004 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,
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
(In thousands, except per share data)
(Unaudited)
Third Quarter Ended Nine Months Ended
January 31, January 31,
--------------------------------------------- ---------------------------------------------
Pct Pct
2005 2004 Chg. 2005 2004 Chg.
------------ ------------ ------------ ------------ ------------ ------------
Revenues:
License $ 4,050 $ 3,823 6% $ 9,154 $ 9,396 (3%)
Services & other 8,541 6,277 36% 22,957 18,244 26%
Maintenance 5,061 4,541 11% 14,123 13,633 4%
Total Revenues 17,652 14,641 21% 46,234 41,273 12%
Cost of Revenues:
License 1,335 1,103 21% 3,130 3,268 (4%)
Services & other 6,019 4,502 34% 16,072 12,375 30%
Maintenance 1,705 1,118 53% 4,205 3,508 20%
Total Cost of Revenues 9,059 6,723 35% 23,407 19,151 22%
Gross Margin 8,593 7,918 9% 22,827 22,122 3%
Operating expenses:
Research and development 2,023 1,885 7% 5,685 5,824 (2%)
Less: capitalized
development (703) (826) (15%) (2,084) (2,532) (18%)
Sales and marketing 3,307 2,899 14% 9,093 8,448 8%
General and administrative 3,066 2,494 23% 7,820 6,892 13%
Acquisition related
amortization of intangibles 79 - nm 117 - nm
Total operating expenses 7,772 6,452 20% 20,631 18,632 11%
Operating income 821 1,466 (44%) 2,196 3,490 (37%)
Interest income & Other, net 832 755 10% 2,068 2,244 (8%)
Minority interest (11) (160) (93%) 9 (238) nm
Income before income taxes 1,642 2,061 (20%) 4,273 5,496 (22%)
Income tax provision 286 - - 286 - -
Net Earnings $ 1,356 $ 2,061 (34%) $ 3,987 $ 5,496 (27%)
Earnings per common share:
Basic: $ 0.06 $ 0.09 (33%) $ 0.17 $ 0.24 (29%)
Diluted: $ 0.05 $ 0.08 (38%) $ 0.16 $ 0.22 (27%)
Weighted average number of
common shares outstanding
Basic 23,781 22,947 23,679 22,655
Diluted 25,238 25,055 25,136 24,571
Reconciliation of Adjusted
Net Income:
Net Income (loss) $ 1,356 $ 2,061 $ 3,987 $ 5,496
Demand Management Acquisition (544) - (831) -
Adjusted Net Income $ 1,900 $ 2,061 $ 4,818 $ 5,496
Adjusted Net Income per
Diluted Share $ 0.08 $ 0.08 $ 0.19 $ 0.22
nm- not meaningful
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
January 31,
---------------------------
2005 2004
------------ ------------
Cash and Short & Long term investments $ 56,909 $ 66,490
Accounts Receivable:
Billed 11,220 6,529
Unbilled 2,881 2,380
Total Accounts Receivable, net 14,101 8,909
Prepaids & Other 2,719 1,129
Non-current Assets 29,089 21,043
Total Assets $ 102,818 $ 97,571
Accounts Payable $ 1,374 $ 1,374
Other Current Liabilities 8,185 5,501
Deferred Revenues 13,055 9,250
Minority Interest 4,044 4,533
Shareholders' Equity 76,160 76,913
Total Liabilities & Shareholders' Equity $ 102,818 $ 97,571
SOURCE American Software, Inc.
-0- 03/03/2005
/CONTACT: Financial Information Press Contact, Vincent C. Klinges, Chief
Financial Officer of American Software, Inc., +1-404-264-5477/
/First Call Analyst: /
/FCMN Contact: jmuir@logility.com /
/Company News On-Call: http://www.prnewswire.com/comp/048263.html /
/Web site: http://www.amsoftware.com /