Exhibit 99.1
AMERICAN SOFTWARE REPORTS FOURTH QUARTER OF FISCAL YEAR 2005 RESULTS
COMPANY ACHIEVES SEVENTEENTH CONSECUTIVE QUARTER OF PROFITABILITY, REVENUE
INCREASES 40% COMPARED TO PRIOR YEAR QUARTER
ATLANTA, June 9 /PRNewswire-FirstCall/ -- American Software, Inc. (Nasdaq:
AMSWA) today reported financial results for the fourth quarter and fiscal year
ended April 30, 2005, marking its seventeenth consecutive quarter of
profitability.
Key financial highlights for American Software include:
* Software license fees for the quarter ended April 30, 2005 were $3.4
million, an increase of 17% over the fourth quarter of fiscal 2004;
* Services and other revenues for the quarter ended April 30, 2005 were
$9.9 million, an increase of 61% over the fourth quarter of fiscal 2004;
* Maintenance revenue fees for the quarter ended April 30, 2005 were $5.4
million, an increase of 26% over the fourth quarter of fiscal 2004;
* Total revenues for the quarter ended April 30, 2005 were $18.7 million,
an increase of 40% over the fourth quarter of fiscal 2004;
* Operating Income for the quarter ended April 30, 2005 was $689,000, an
increase of 38% over the fourth quarter of fiscal 2004;
* Total cash and investments as of April 30, 2005 were $59.1 million, an
increase of $2.2 million compared to January 31, 2005.
GAAP net earnings were $1.4 million or $0.06 per fully diluted share for the
fourth quarter of fiscal 2005 compared to $221,000 or $0.01 per fully diluted
share for the fourth quarter of fiscal 2004. Adjusted net earnings for the
quarter ended April 30, 2005, which excludes the acquisition related intangibles
costs, an asset impairment charge and an income tax benefit was $1.7 million or
$0.07 per fully diluted share compared to $303,000 or $0.01 per fully diluted
share for the same period last year.
Total revenues for the twelve months ended April 30, 2005 were $64.6 million
compared to $54.7 million for the same period last year. Software license fees
for the twelve months ended April 30, 2005 were $12.3 million compared to $12.4
million for the same period last year. Services and other revenues for the
twelve months ended April 30, 2005 were $32.8 million compared to $24.4 million
for the same period last year. Maintenance revenues for the twelve months ended
April 30, 2005 were $19.5 million compared to $17.9 million for the same period
last year. For the twelve months ended April 30, 2005, the Company reported a
GAAP net earnings of $5.2 million, or $0.21 per fully diluted share compared to
a GAAP net earnings of $5.7 million or $0.23 per fully diluted share for the
prior year. Adjusted net earnings for twelve months ended April 30, 2005, which
excludes the acquisition related intangibles costs, an asset impairment charge
and a tax benefit was $5.9 million or $0.24 per fully diluted share compared to
$5.8 million or $0.24 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.
"American Software delivered an impressive 40% increase in revenue which was
fueled by a 17% increase in license fees and 61% growth in services revenues
compared to the same quarter of last year. This quarter's positive results
extended the Company's track record of profitability and positive cash flow to
seventeen consecutive quarters," stated James C. Edenfield, president and CEO of
American Software. "We will use our financial strength to reinvest in the
Company as well as continue to provide a tangible benefit to our shareholders
with a quarterly dividend."
The overall financial condition of the Company remains strong with cash and
investments of approximately $59.1 million and no debt. The Company's cash and
investment position increased approximately $2.2 million compared to January 31,
2005.
Additional highlights for the fourth quarter and fiscal year 2005 include:
Customers
* Notable new and existing customers placing orders with American
Software in the fourth quarter include Able Distribution Company,
Burberry, Inc., Caremark International, Inc., Carole Hochman Design
Group, Farley's & Sathers Candy Company, Inc., Hamilton Beach,
Honeywell, JJ Mae, Inc., Komatsu, Metal Building Systems, Petroleos de
Venezuela, S.A., Republic Beverage Company and XanGo.
* During the quarter, software license agreements were signed with
customers located in 13 countries including Australia, Belgium, China, El
Salvador, Germany, Italy, Malaysia, Mexico, Poland, Switzerland, the
United Kingdom, the United States and Venezuela.
* The Company announced that Petroleos de Venezuela, S.A. ("PDVSA") has
upgraded and licensed 16 server copies of its ERP software applications
suite to run on an IBM eServer iSeries(TM) platform. The American
Software solutions will be used to support PDVSA's oil lubrication
facilities throughout Venezuela.
* Logility, our 87% owned subsidiary, held "The Logility Connections 2005:
Catch the Wave-Supply Chain ROI" conference on March 16-18 in Atlanta and
offered attendees the opportunity to hear best practices from industry
peers, learn valuable tips for maximizing return on investment, and gain
insight from leading supply chain experts to help prepare for the next
wave of demand-driven supply chain improvement.
* In February 2005, supply chain professionals gathered in San Antonio for
the 18th Annual Demand Management Association Conference. The meeting
included informative user presentations, industry briefings and the
introduction of new product features for the DS One product suite. The
conference proved to be an excellent forum for Mike Edenfield, Logility
president and CEO, to meet with a large group of Demand Solutions users
and discuss Logility's vision for the future. The Demand Management
Association is the organization for users of Demand Solutions software
from Demand Management, Inc. (DMI), a wholly owned subsidiary of
Logility.
* The Logility International User Group Conference took place in
Manchester, UK, in April 2005. The event included features from the
Robert Horne Group, which discussed its swift upgrade to Logility Voyager
Solutions 7.0; and Honeywell, which discussed using Logility Voyager
Collaborate for sales and operations planning.
* Logility named Remy International, North America's largest producer of
remanufactured starters and alternators for the automotive aftermarket,
as the recipient of the 2005 Sailing to New Heights with Logility Award
for supply chain excellence. This award is the highest honor given
annually to the Logility customer that has leveraged innovation and
collaboration to drive measurable business improvements and supply chain
excellence through the deployment of Logility Voyager Solutions(TM). Remy
implemented Logility Voyager Solutions in 2004 to reduce demand
volatility and improve factory scheduling; generate a one-number forecast
for its business; decrease inventory; and streamline the sales and
operations planning process.
* Logility presented 2005 Leadership Awards to the following companies:
- Nestle Purina Petcare, a leading manufacturer of dry and canned dog
food, dry and canned cat food and cat box filler in the United States,
has used Logility Voyager Solutions to improve payment and audit of
carrier freight bills while reducing costs. The company deployed
Logility Voyager Transportation Planning and Management at its plants
last year.
- Robert Horne Group, the UK's leading supplier of paper, board and
plastics to the visual communications industry, has used Logility
Voyager Solutions to plan more effectively and operate more
efficiently. Logility was live in less than seven weeks, and the
deployment paid for itself in less than three months, delivering an
immediate 15% reduction in stock costs, and a current total 30%
reduction in stock costs.
- Tiffany & Co., the internationally renowned retailer, designer and
manufacturer of fine jewelry, timepieces and tabletop, has used
Logility Solutions to reduce demand variability and increase forecast
accuracy.
- The Coleman Company, Inc., a leading manufacturer, marketer and
distributor of recreational, camping and outdoor products, has used
Logility Voyager Solutions to reduce transportation costs, improve
customer service and on-time deliveries; and provide more consistent
lower-cost carrier selection.
- Williamson-Dickie Manufacturing, a privately held global manufacturer
of work wear, has used Logility Voyager Solutions to improve forecast
accuracy, lower supply chain cost, and support a sales and operations
planning process.
* New Generation Computing Inc. (NGC), a wholly owned subsidiary of
American Software, announced that ArcticShield has selected NGC's SQL
Series. The software suite will help the company increase speed to
market, reduce costs, manage by exception and enhance workflow. "NGC has
proven to be a pioneer in the apparel consumer products industry when it
comes to developing cutting-edge technology," said J.T. Griffin,
president of ArcticShield.
* New Generation Computing announced that Rocky Shoes and Boots Inc. has
selected NGC's Web-based sourcing and production system, e-SPS to help
streamline its global production of footwear. Rocky Shoes and Boots
installed the e-SPS software to enable its sourcing team to complete
steps in the production lifecycle in real time via the Internet.
* New Generation Computing announced that Broder Bros. Co. selected NGC's
Web-based sourcing and production system, e-SPS, along with its product
data management module, e-PDM, to streamline global sourcing and
production. With e-SPS and e-PDM, the company's sourcing operation will
have the ability to complete steps in the production of in-process and
finished goods as well as gain end-to-end visibility of the entire global
production process.
Products and Technology
* Logility unveiled Logility Voyager Solutions 7.5 to attendees at
Connections 2005. The latest version, which will be commercially
available in summer 2005, includes enhancements to help distribution-
intensive companies use the Internet to gain visibility of key metrics;
manage dynamic global supply chain activities; support radio frequency
identification (RFID) initiatives; optimize transportation operations;
and accelerate sales and operations planning (S&OP) processes. Enhanced
performance management capabilities are embedded across all areas of
Logility Voyager Solutions. Key functionality by business process area
includes:
- Demand chain planning -- enhanced Web-based forecast management,
forecast modeling, life cycle planning and time-phased safety stock
methods
- Supply chain planning -- expanded load optimization and shelf live
capabilities, and new plant level KPIs and alerts
- Transportation planning and management -- additional shipment planning
and execution features
- Built-in RFID support, warehouse management additions and support for
Lightweight Directory Access Protocol (LDAP)
For more detailed information, please reference the March 17, 2005 press
release, Logility Voyager Solutions 7.5 Debut at Connections 2005.
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: http://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
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, 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)
Fourth Quarter Ended Twelve Months Ended
April 30, April 30,
-------------------------------------- --------------------------------------
Pct Pct
2005 2004 Chg. 2005 2004 Chg.
---------- ---------- ---------- ---------- ---------- ----------
Revenues:
License $ 3,446 $ 2,957 17% $ 12,310 $ 12,353 0%
Services & other 9,892 6,163 61% 32,849 24,407 35%
Maintenance 5,353 4,265 26% 19,476 17,898 9%
Total Revenues 18,691 13,385 40% 64,635 54,658 18%
Cost of Revenues:
License 999 1,054 (5)% 4,129 4,322 (4)%
Services & other 6,687 4,372 53% 22,759 16,747 36%
Maintenance 1,527 1,170 31% 5,732 4,678 23%
Total Cost of Revenues 9,213 6,596 40% 32,620 25,747 27%
Gross Margin 9,478 6,789 40% 32,015 28,911 11%
Operating expenses:
Research and development 2,013 1,777 13% 7,698 7,601 1%
Less: capitalized
development (666) (866) (23)% (2,750) (3,398) (19)%
Sales and marketing 3,283 3,011 9% 12,344 11,459 8%
General and administrative 3,369 2,367 42% 11,189 9,259 21%
Acquisition related
amortization of
intangibles 87 - nm 204 - nm
Charge for asset
impairment 703 - nm 703 - nm
Total operating expenses 8,789 6,289 40% 29,388 24,921 18%
Operating income 689 500 38% 2,627 3,990 (34)%
Interest income & Other
income (expense), net 231 (189) nm 2,299 2,055 12%
Minority interest 28 (8) nm 71 (246) nm
Income before income taxes 948 303 213% 4,997 5,799 (14)%
Income tax provision/
(benefit) (501) 82 nm (215) 82 nm
Net Earnings $ 1,449 $ 221 556% $ 5,212 $ 5,717 (9)%
Earnings per common share:
Basic: $ 0.06 $ 0.01 500% $ 0.22 $ 0.25 (12)%
Diluted: $ 0.06 $ 0.01 500% $ 0.21 $ 0.23 (9)%
Weighted average number of
common shares outstanding
Basic 23,904 23,451 23,734 22,851
Diluted 25,218 25,337 24,531 24,640
Reconciliation of Adjusted
Net Income:
Net Earnings $ 1,449 $ 221 556% $ 5,212 $ 5,717 (9)%
Charge for asset impairment 703 - nm 703 - nm
Acquisition related
amortization of intangibles 87 - nm 204 - nm
Income tax
provision/(benefit) (501) 82 nm (215) 82 nm
Adjusted Net Earnings $ 1,738 $ 303 474% $ 5,904 $ 5,799 2%
Adjusted Net Earnings per
Diluted Share $ 0.07 $ 0.01 600% $ 0.24 $ 0.24 0%
nm - not meaningful
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
April 30,
-----------------------
2005 2004
---------- ----------
Cash and Short & Long term investments $ 59,080 $ 66,366
Accounts Receivable:
Billed 9,008 7,097
Unbilled 3,503 2,487
Total Accounts Receivable, net 12,511 9,584
Prepaids & Other 2,592 876
Non-current Assets 28,264 20,410
Total Assets $ 102,447 $ 97,236
Accounts Payable $ 1,313 $ 678
Other Current Liabilities 7,360 5,589
Deferred Revenues 13,640 10,059
Minority Interest 3,985 4,457
Shareholders' Equity 76,149 76,453
Total Liabilities & Shareholders'
Equity $ 102,447 $ 97,236
SOURCE American Software, Inc.
-0- 06/09/2005
/CONTACT: Financial Information, 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 /
_