American Software Reports Preliminary Fourth Quarter and Fiscal Year 2013 Results

  American Software Reports Preliminary Fourth Quarter and Fiscal Year 2013
  Results

Business Wire

ATLANTA -- June 20, 2013

American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial
results for the fourth quarter of fiscal 2013 and the fiscal year ended April
30, 2013. The Company has delivered 49 consecutive quarters of profitability.

Key fourth quarter financial metrics:

  *Total revenues for the quarter ended April 30, 2013 were $25.2 million, a
    decrease of 10% over the comparable period last year.
  *Software license fee revenues for the quarter ended April 30, 2013 were
    $5.7 million, a decrease of 22% over the same period last year.
  *Services and other revenues for the quarter ended April 30, 2013 were
    $11.0 million compared to $12.3 million for the same period last year, a
    decrease of 11%.
  *Maintenance revenues for the quarter ended April 30, 2013 were $8.6
    million compared to $8.4 million, an increase of 3% over the same period
    last year.
  *Operating earnings for the quarter ended April 30, 2013 were $3.5 million,
    a decrease of 23% compared to the same period last year.
  *GAAP net earnings for the quarter ended April 30, 2013 were $3.1 million
    or $0.11 per fully diluted share, a decrease of 12% over the same period
    last year.
  *Adjusted net earnings for the quarter ended April 30, 2013, which excludes
    stock-based compensation expense and amortization of acquisition-related
    intangibles, were $3.4 million or $0.12 per fully diluted share compared
    to $3.8 million or $0.14 per fully diluted share for the same period last
    year, which also excluded stock-based compensation expense and
    amortization of acquisition-related intangibles.
  *Adjusted EBITDA was $4.9 million for the quarter ended April 30, 2013
    compared to $6.0 million for the quarter ended April 30, 2012. Adjusted
    EBITDA represents GAAP net earnings adjusted for amortization of
    intangibles, depreciation, interest income, income tax expense,
    stock-based compensation, and other significant non-routine operating and
    non-operating income and expense items, if applicable.

Key fiscal year 2013 financial metrics:

  *Total revenues for the twelve months ended April 30, 2013 were $100.5
    million, a 2% decrease over the comparable period last year.
  *Software license fees for the twelve-month period were $21.2 million, a
    24% decrease compared to the same period last year.
  *Services and other revenues were $45.3 million, a 7% increase compared to
    the same period last year.
  *Maintenance revenues were $34.0 million, a 5% increase over the comparable
    period last year.
  *For the twelve months ended April 30, 2013, the Company reported operating
    earnings of approximately $13.8 million, a 15% decrease over the same
    period last year.
  *GAAP net earnings were approximately $10.4 million or $0.38 per fully
    diluted share for the twelve months ended April 30, 2013, a 8% decrease
    compared to $11.3 million or $0.42 per fully diluted share for the same
    period last year.
  *Adjusted net earnings for the twelve months ended April 30, 2013, which
    excludes stock-based compensation expenses and acquisition-related
    amortization of intangibles, were $11.7 million or $0.42 per fully diluted
    share, compared to $12.5 million or $0.46 per fully diluted share for the
    same period last year, which also excluded stock-based compensation
    expenses and acquisition-related amortization of intangibles.
  *Adjusted EBITDA decreased 11% to $19.4 million for the twelve months ended
    April 30, 2013, from $21.8 million for the twelve months ended April 30,
    2012. Adjusted EBITDA represents GAAP net earnings adjusted for
    amortization of intangibles, depreciation, interest income, income tax
    expense, stock-based compensation, and other significant non-routine
    operating and non-operating income and expense items, if applicable.

The Company is including EBITDA, adjusted EBITDA, 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-compliant financial information 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 no debt
and with cash and investments of approximately $66.4 million as of April 30,
2013. During fiscal 2013, the Company paid approximately $15.5 million in
dividends and repurchased 96,152 shares of its common stock at an average cost
of $7.89 per share. The authorized stock repurchase program has a remaining
balance of 1,090,138 shares.

“Despite the economic headwinds which continued during the fourth quarter, we
grew sequential revenues and earnings, and delivered our best quarterly net
income of fiscal year 2013,” stated Mike Edenfield, president and CEO of
American Software. “To succeed in an economy shaped by uncertain demand and
rapid market changes, companies must be able to sense these shifts and adapt
quickly. The supply chain is seen as a key enabler of this flexibility. Our
portfolio of solutions help our customers boost agility, optimize inventory
investments and synchronize demand and supply. With greater visibility and
reduced supply chain costs, our customers have better information and greater
confidence to respond effectively to dynamic market conditions.”

“For fiscal year 2013, we welcomed 68 new customers, signed license agreements
with customers in 25 countries and continued our aggressive investment in
research and development and expanding our global presence,” continued
Edenfield. “With 49 consecutive quarters of profitability combined with
consistent growth in our global customer base, American Software is well
positioned with a robust portfolio of innovative enterprise application
solutions and deep supply chain management expertise.”

Additional highlights for the fourth quarter of fiscal 2013 include:

Customers & Channels

  *Notable new and existing customers placing orders with the Company in the
    fourth quarter include: 3M Australia, Ballet Jewels, Cytec Surface
    Specialties S.A., Gay Lea Foods Co-operative, Glen Raven, Haddon House
    Food Products, Maidenform, Jay Franco and Sons, Oceana Brands, Polaris
    Industries, Rocky Brands, Ruko, Unifirst Corp., VF Services, and Zimmer
    K.K.
  *During the quarter, software license agreements were signed with customers
    located in the following 14 countries: Australia, Belgium, Brazil, Canada,
    Colombia, Denmark, Italy, Japan, Mexico, Nicaragua, South Africa, Sweden,
    the United Kingdom and the United States.
  *Logility, a wholly-owned subsidiary of the Company, and Deloitte delivered
    a live webcast entitled “The Practical Approach to S&OP,” sharing
    step-by-step best practices for pursuing sales and operations planning
    (S&OP) excellence. The event highlighted the three principles for success:
    make it easy to implement, easy to execute and easy to sustain.
  *Logility presented three sessions at the annual INFORMS Conference on
    Business Analytics & Operations Research to bring multi-echelon inventory
    optimization (MEIO) to the forefront of the event. Sean Willems, PhD,
    associate professor, Operations Management, Boston University School of
    Management and chief scientist at Logility presented “A Guide for
    Multi-Echelon Inventory Optimization Projects: Lowering Inventory while
    Improving Service Levels;” Chris Russell, vice president at Logility led
    the session “The Journey to the Top of Multi-Echelon Inventory
    Optimization Maturity Curve;” and Jeff Pittman, senior business consultant
    with Logility headed the workshop “Inventory Optimization and Supply
    Chain.” Additionally, Logility customer Moen presented, “Multi-Echelon
    Inventory Optimization Helps Moen with Inventory Rebalancing.”
  *NGC Software, a wholly-owned subsidiary of the Company, announced apparel
    producer Century Place implemented the latest version of its fashion
    enterprise resource planning (ERP) system. Century Place, a long-time
    customer of NGC, is now able to take advantage of more flexible reporting,
    the ability to easily drill down into the data, as well as improved order
    entry.

Company & Technology

  *Logility president and CEO Mike Edenfield and NGC Software president of
    sales, marketing and R&D Mark Burstein were each named by the editorial
    staff of Supply & Demand Chain Executive as 2013 Supply Chain Pros to
    Know. The award recognizes individuals who have made a significant impact
    on the industry and helped prepare businesses for the supply chain
    opportunities and challenges ahead
  *The readers of Consumer Goods Technology magazine recognized Logility for
    the 13^th consecutive year as a top supply chain planning management
    solutions provider. The Reader’s Choice Award is based on a survey of more
    than 150 consumer goods companies and IT executives to identify the
    solutions and providers they value most based on capabilities and
    satisfaction.
  *The Technology Association of Georgia (TAG) named Logility one of
    Georgia’s Top 40 most innovative companies. The annual award recognized
    Georgia-based technology companies for their innovation, financial impact
    and efforts to spread the awareness of Georgia’s technology initiatives
    throughout the U.S. and globally.

About American Software, Inc.

Atlanta-based American Software (NASDAQ: AMSWA) provides demand-driven supply
chain management and enterprise software solutions, backed by more than 40
years of industry experience, that drive value for companies regardless of
market conditions. Logility, Inc., a wholly-owned subsidiary of American
Software, is a leading provider of collaborative solutions to optimize the
supply chain. Logility Voyager Solutions™ is a complete supply chain
management solution suite that features a performance monitoring architecture
and provides supply chain visibility; demand, inventory and replenishment
planning; sales and operations planning (S&OP); supply and inventory
optimization; manufacturing planning and scheduling; transportation planning
and management; and warehouse management. Logility customers include Fender
Musical Instruments, Hewlett-Packard, Parker Hannifin, Sigma-Aldrich, Verizon
Wireless, and VF Corporation. Demand Management, Inc., a wholly-owned
subsidiary of Logility, delivers supply chain solutions to small and midsized
manufacturers, distributors and retailers. Demand Management’s Demand
Solutions^® suite is widely deployed and globally recognized for forecasting,
demand planning and point-of-sale analysis. Demand Management serves customers
such as Avery Dennison Corporation, Lonely Planet and Trek Bicycle. New
Generation Computing^® (NGC^®), a wholly-owned subsidiary of American
Software, is a leading provider of PLM, supply chain management, ERP and
product testing software and services for brand owners, retailers and consumer
products companies. NGC customers include A|X Armani Exchange, Aeropostale,
Billabong, Carter’s, Casual Male, Hugo Boss, Jos. A. Bank, FGL Group, Spanx,
Athletica, Marchon Eyewear, and Swatfame. For more information about American
Software, please visit www.amsoftware.com, call (800) 726-2946 or email:
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, continuing U.S.
and global economic uncertainty, the timing and degree of business recovery,
unpredictability and the irregular pattern of future revenues, dependence on
particular market segments or customers, competitive pressures, delays,
product liability and warranty claims and other risks associated with new
product development, undetected software errors, market acceptance of the
Company’s products, technological complexity, the challenges and risks
associated with integration of acquired product lines, companies and services,
as well as a number of other risk factors that could affect the Company’s
future performance. For further information about risks the Company could
experience as well as other information, please refer to the Company's current
Form 10-K 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.

Logility is a registered trademark and Logility Voyager Solutions is a
trademark of Logility, Inc., Demand Solutions is a registered trademark of
Demand Management, Inc., and NGC and New Generation Computing are registered
trademarks of New Generation Computing, Inc.. 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)
                                                                               
                          Fourth Quarter Ended               Twelve Months Ended
                          April 30,                          April 30,
                          2013         2012         Pct      2013          2012          Pct
                                                    Chg.                                 Chg.
Revenues:
  License                 $ 5,672      $ 7,287      (22 %)   $ 21,184      $ 27,826      (24 %)
  Services & other          10,952       12,289     (11 %)     45,323        42,380      7   %
  Maintenance              8,590      8,356     3   %     33,960      32,430     5   %
       Total Revenues      25,214     27,932    (10 %)    100,467     102,636    (2  %)
                                                                                         
Cost of Revenues:
  License                   1,417        1,673      (15 %)     6,026         7,142       (16 %)
  Services & other          7,751        8,719      (11 %)     31,870        31,101      2   %
  Maintenance              1,861      2,073     (10 %)    7,664       7,597      1   %
       Total Cost of       11,029     12,465    (12 %)    45,560      45,840     (1  %)
       Revenues
Gross Margin               14,185     15,467    (8  %)    54,907      56,796     (3  %)
Operating expenses:
  Research and              3,035        3,023      0   %      12,300        10,957      12  %
  development
  Less: capitalized         (771   )     (777   )   (1  %)     (3,418  )     (2,731  )   25  %
  development
  Sales and marketing       5,203        5,160      1   %      19,829        18,797      5   %
  General and               3,056        3,344      (9  %)     11,695        12,832      (9  %)
  administrative
  Provision for             -            21         nm         216           238         (9  %)
  doubtful accounts
  Amortization of
  acquisition-related       126          131        (4  %)     501           535         (6  %)
  intangibles
                                                                                   
       Total
       Operating           10,649     10,902    (2  %)    41,123      40,628     1   %
       Expenses
Operating Earnings         3,536      4,565     (23 %)    13,784      16,168     (15 %)
  Interest Income &        702        529       33  %     1,741       1,103      58  %
  Other, Net
Earnings Before             4,238        5,094      (17 %)     15,525        17,271      (10 %)
Income Taxes
Income Tax Expense         1,160      1,612     (28 %)    5,114       5,928      (14 %)
Net Earnings              $ 3,078     $ 3,482     (12 %)   $ 10,411     $ 11,343     (8  %)
Earnings per common
share: (1)
  Basic                   $ 0.11      $ 0.13      (15 %)   $ 0.38       $ 0.43       (12 %)
  Diluted                 $ 0.11      $ 0.13      (15 %)   $ 0.38       $ 0.42       (10 %)
                                                                                         
Weighted average
number of common
shares outstanding:
       Basic                27,277       26,905                27,173        26,455
       Diluted              27,719       27,504                27,629        27,098
                                                                                         
nm- not meaningful
AMERICAN SOFTWARE, INC.
NON-GAAP MEASURES OF PERFORMANCE
(In thousands, except per share data, unaudited)
                                                                                         
                          Fourth Quarter Ended               Twelve Months Ended
                          April 30,                          April 30,
                          2013         2012         Pct      2013          2012          Pct
                                                    Chg.                                 Chg.
NON-GAAP EARNINGS PER
SHARE:
Net Earnings (GAAP        $ 3,078      $ 3,482      (12 %)   $ 10,411      $ 11,343      (8  %)
Basis)
  Income tax expense        1,160        1,612      (28 %)     5,114         5,928       (14 %)
  Interest Income &         (702   )     (529   )   33  %      (1,741  )     (1,103  )   58  %
  Other, Net
  Amortization of           769          775        (1  %)     3,077         3,119       (1  %)
  intangibles
  Depreciation             266        279       (5  %)    1,076       1,183      (9  %)
EBITDA (earnings
before interest,           4,571      5,619     (19 %)    17,937      20,470     (12 %)
taxes, depreciation
and amortization)
                                                                                         
  Stock-based              359        355       1   %     1,476       1,287      15  %
  compensation
Adjusted EBITDA           $ 4,930     $ 5,974     (17 %)   $ 19,413     $ 21,757     (11 %)
                                                                        
EBITDA , as a              18     %    20     %             18      %    20      %
percentage of revenue
                                                                        
Adjusted EBITDA , as
a percentage of            20     %    21     %             19      %    21      %
revenue
                                                                                         
                                                                                         
                          Fourth Quarter Ended               Twelve Months Ended
                          April 30,                          April 30,
                          2013         2012         Pct      2013          2012          Pct
                                                    Chg.                                 Chg.
NON-GAAP EARNINGS PER
SHARE:
Net Earnings (GAAP        $ 3,078      $ 3,482      (12 %)   $ 10,411      $ 11,343      (8  %)
Basis)
  Amortization of
  acquisition-related       92           90         2   %      336           351         (4  %)
  intangibles (2)
  Stock-based              261        243       7   %     990         845        17  %
  compensation (2)
Adjusted Net Earnings     $ 3,431     $ 3,815     (10 %)   $ 11,737     $ 12,539     (6  %)
                                                                                         
Adjusted non-GAAP
diluted earnings per      $ 0.12      $ 0.14      (14 %)   $ 0.42       $ 0.46       (9  %)
share
                                                                                         
(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 $0.11 and $0.38 for the three and twelve months ended April 30, 2013,
respectively. Diluted per share for Class B shares under the two-class method are $0.13 and
$0.43 for the three and twelve months ended April 30, 2012, respectively.

(2) - Tax affected using the effective tax rate for the three and twelve months period ended
April 30, 2013 and 2012.
                                                                                         

                                                     
AMERICAN SOFTWARE, INC.
Consolidated Balance Sheet Information
(In thousands)
(Unaudited)
                                            April 30,    April 30,
                                               2013            2012
                                                               
Cash and Short-term Investments                $ 59,766        $ 59,362
Accounts Receivable:
Billed                                           13,179          15,205
Unbilled                                        3,741          4,607
Total Accounts Receivable, net                   16,920          19,812
Prepaids & Other                                 3,162           3,184
Deferred Tax Asset                              -              34
Current Assets                                   79,848          82,392
                                                               
Investments - Non-current                        6,658           7,508
                                                               
PP&E, net                                        4,482           4,912
Capitalized Software, net                        8,708           7,791
Goodwill                                         12,601          12,601
Other Intangibles, net                           687             1,263
Other Non-current Assets                        86             86
Total Assets                                   $ 113,070       $ 116,553
                                                               
Accounts Payable                               $ 1,207         $ 1,042
Accrued Compensation and Related costs           2,961           5,169
Dividend Payable                                 -               2,433
Other Current Liabilities                        2,969           4,198
Deferred Tax Liability - Current                 332             -
Deferred Revenues                               21,291         19,441
Current Liabilities                              28,760          32,283
                                                               
Deferred Tax Liability - Long term               1,066           1,240
                                                               
Shareholders' Equity                             83,244          83,030
                                                              
Total Liabilities & Shareholders' Equity       $ 113,070       $ 116,553

Contact:

American Software, Inc.
Financial Information Press Contact:
Vincent C. Klinges, 404-264-5477
Chief Financial Officer