Exhibit 99.1
AMERICAN SOFTWARE REPORTS FIRST QUARTER OF FISCAL YEAR 2007 RESULTS
First Quarter Operating Earnings Increase 130% Driven by License Fee Growth of
27%
ATLANTA, Sept. 7 /PRNewswire-FirstCall/ -- American Software, Inc.
(Nasdaq: AMSWA) today reported financial results for the first quarter of
fiscal year 2007, achieving 22 consecutive quarters of profitability.
Key first quarter financial highlights include:
* Software license fees for the quarter ended July 31, 2006 were $4.4
million, an increase of 27% over the first quarter of fiscal 2006;
* Services and other revenues for the first quarter ended July 31, 2006
were $9.3 million; an increase of 21% over the first quarter of fiscal
2006;
* Maintenance revenues for the quarter ended July 31, 2006 were $6.5
million, an increase of 16% over the first quarter of fiscal 2006;
* Total revenues for the quarter ended July 31, 2006 were $20.2 million, an
increase of 20% over the first quarter of fiscal 2006; and
* Operating earnings for the quarter ended July 31, 2006 were $1.7 million,
an increase of 130% over the first quarter of fiscal 2006.
GAAP net earnings were approximately $1.2 million or $0.05 per fully diluted
share for the first quarter of fiscal 2007 compared to $1.0 million or $0.04 per
fully diluted share for the same period last year. Adjusted net earnings, which
exclude acquisition-related intangible costs and stock option compensation
expense for the quarter ended July 31, 2006, were $1.6 million or $0.06 per
fully diluted share compared to $1.1 million or $0.04 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 $63.9 million and no debt as of July 31, 2006. This
is an increase in cash and investments of approximately $6.2 million compared to
July 31, 2005 and a sequential increase of approximately $1.3 million compared
to April 30, 2006. On August 29, 2006 the Board of Directors approved a 14%
increase to the Company's quarterly dividend from $0.07 per share to $0.08 per
share. The Company's regular quarterly cash dividend of $0.08 per share of
American Software common stock is payable on December 8, 2006 to shareholders of
record at the close of business on November 20, 2006.
"American Software posted a strong performance for the first quarter of
fiscal 2007. We delivered an impressive 130% growth in operating earnings which
was driven by a 27% increase in license fee revenue," stated James C. Edenfield,
president and CEO of American Software. "This quarter's positive results
extended the Company's track record of profitability and positive operation cash
flow to 22 consecutive quarters. We will continue to use our financial strength
to reinvest in the Company to better serve our customers and we expect to
continue providing a tangible benefit to our shareholders with a quarterly
dividend."
Additional highlights for the first quarter of fiscal year 2007 include:
Customers
* Notable new and existing customers placing orders with the Company in the
first quarter include: 3M Central and Eastern Europe, American Air Filter
International, Casual Male Retail, Ceres Fruit Juices, Footlocker,
Furniture Brands International, Heineken USA, Horizon Hobby, Jarden
Consumer Products, Maggy London, Nisbets PLC, Oneida Ltd., Snyders of
Hanover, Tyco Healthcare Singapore, The Bon Ton Stores and VF Intimates.
* During the quarter, software license agreements were signed with
customers located in 12 countries including: Australia, Canada, France,
Germany, Hungary, India, New Zealand, Singapore, South Africa, the United
Kingdom, the United States and Vietnam.
* Logility continued its thought leadership initiative during a recent
Supply Chain Power Hour: "Keeping your Cool: Simplifying Service Parts
Management." The webcast featured speakers from AMR Research, Rheem
Manufacturing Company and Logility.
* New Generation Computing Inc. (NGC), a wholly owned subsidiary of the
Company, announced the expansion of its operations to include locations
in China that will provide local support for our USA customers and their
supply chain partners. Chinese representatives of NGC will provide
professional services, development, and sales support in Shenzhen
(adjacent to Hong Kong), Shanghai, and Xian.
* NGC announced that Biscotti Inc., maker of girl's special occasion
dresses carried at fine department stores, has fully implemented
RedHorse, a comprehensive Enterprise Resource Planning system designed
specifically for the sewn products industry (Apparel, Footwear,
Retailers, Brand Management and Home Furnishings).
* NGC announced that Maggy London International Ltd. has selected NGC's
RedHorse, e-SPS and e-PDM, for deployment across all Maggy London
divisions and worldwide operations. NGC's products are designed
specifically for the sewn products industry and are used by
manufacturers, brand managers, retailers and importers to manage the
design, sourcing and production of raw material and finished products and
TPM, a shop floor control and payroll system.
Products and Technology
* Logility was ranked in the Visionary Quadrant of Gartner's 2006 Magic
Quadrant for Supply Chain Planning in Distribution-Intensive Industries
as well as the 2006 Magic Quadrant for Supply Chain Planning in Process
Manufacturing Industries. Logility's strength in supply chain planning
functionality for process-centric and distribution-intensive
manufacturing combined with strong vision and proven ability to execute
contributed to Gartner's assessment of Logility in both quadrants.
* Demand Management, a wholly-owned subsidiary of Logility, Inc., and
SoftBrands, Inc., a world-wide leader in enterprise software for
manufacturers, announced a partnership to provide end-to-end ERP and SCM
solutions for mid-market manufacturers. The combined solution offers
unprecedented opportunities for small and mid-sized manufacturers to
become more competitive through improved efficiencies to automate Vendor
Managed Inventory (VMI), CPFR and Sales & Operations Planning.
* Demand Management received the SAP Business One(R) integration
certification for forecasting and demand planning, further establishing
its Demand Solutions(R) software suite as a globally available, fully
integrated solution for SAP solutions-based environments. The integration
certification offers a built-in integration layer between SAP Business
One solutions and Demand Solutions to ensure that information shared
between the two systems is accurate and consistent, saving organizations
substantial time, money and resources.
* NGC announced the release of its latest version of RedHorse, a
comprehensive Enterprise Resource Planning system designed specifically
for the apparel and sewn products industry. RedHorse 2006 uses the
current version of MS SQL Server and has been certified by Microsoft.
* J. Michael Edenfield, president and CEO of Logility, was named to
START-IT magazine's CEO Visionaries list. The fourth annual top-ten list
recognizes CEOs that are helping manufacturing companies prosper.
* Logility was named a 2006 Top 100 Logistics IT Provider by Inbound
Logistics magazine for the ninth time. The selection process included
comparison of more than 300 logistics IT providers and their ability to
deliver solutions to meet the diverse needs of the Inbound Logistics'
readers.
* Logility was recognized as a top software vendor in the apparel market by
Apparel magazine's inaugural Software Scorecard. Logility was ranked in
the top 20 for overall performance and ROI in the 2006 Apparel Software
Scorecard.
* Logility was named by Supply & Demand Chain Executive magazine to the
"Supply & Demand Chain Executive 100" for the fifth consecutive year.
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, 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
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, 2006 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)
First Quarter Ended
July 31,
------------------------------------
Pct
2006 2005 Chg.
---------- ---------- ----------
Revenues:
License $ 4,373 $ 3,444 27%
Services & other 9,263 7,687 21%
Maintenance 6,545 5,635 16%
Total Revenues 20,181 16,766 20%
Cost of Revenues:
License 1,454 1,075 35%
Services & other 6,644 5,529 20%
Maintenance 1,777 1,568 13%
Total Cost of Revenues 9,875 8,172 21%
Gross Margin 10,306 8,594 20%
Operating expenses:
Research and development 2,315 2,128 9%
Less: capitalized development (596) (617) (3)%
Sales and marketing 3,517 3,112 13%
General and administrative 3,308 3,155 5%
Acquisition related amortization of
intangibles 88 87 1%
Total Operating Expenses 8,632 7,865 10%
Operating Earnings 1,674 729 130%
Interest Income & Other, Net 605 1,117 (46)%
Earnings Before Income Taxes and
Minority Interest 2,279 1,846 23%
Income Tax Expense (905) (724) 25%
Minority Interest Expense (127) (98) 30%
Net Earnings $ 1,247 $ 1,024 22%
Earnings per common share:
Basic: $ 0.05 $ 0.04 25%
Diluted: $ 0.05 $ 0.04 25%
Weighted average number of common
shares outstanding:
Basic 24,508 23,970
Diluted 25,266 25,064
Reconciliation of Adjusted Net Earnings:
Net Earnings $ 1,247 $ 1,024
Acquisition related amortization of
intangibles 88 87
Stock option expense 225 --
Adjusted Net Earnings $ 1,560 $ 1,111 40%
Adjusted Net Earnings per Diluted Share $ 0.06 $ 0.04 50%
nm- not meaningful
AMERICAN SOFTWARE, INC.
Selected Balance Sheet Information
(In thousands)
(Unaudited)
July 31,
-----------------------
2006 2005
---------- ----------
Cash and Short & Long-term investments $ 63,925 $ 57,740
Accounts Receivable:
Billed 10,505 9,410
Unbilled 3,701 3,429
Total Accounts Receivable, net 14,206 12,839
Prepaids & Other 2,303 1,938
Deferred Income Tax Asset - short-term 96 --
PP&E, net 7,510 7,924
Capitalized Software, net 6,500 7,128
Goodwill 11,120 10,343
Other Intangibles 1,839 3,112
Deferred Income Tax Asset - long-term -- 714
Non-current Assets 1,439 1,533
Total Assets $ 108,938 $ 103,271
Accounts Payable $ 866 $ 1,061
Other Current Liabilities 6,573 5,347
Dividend Payable 1,716 1,679
Deferred Income Tax Liability - Short Term -- 121
Deferred Revenues 15,050 14,304
Current Liabilities 24,205 22,512
Deferred Income Tax Liability - Long Term 1,060 --
Minority Interest 4,344 3,419
Shareholders' Equity 79,329 77,340
Total Liabilities & Shareholders' Equity $ 108,938 $ 103,271
SOURCE American Software, Inc.
-0- 09/07/2006
/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)