American Software Reports Preliminary First Quarter of Fiscal Year 2014 Results

  American Software Reports Preliminary First Quarter of Fiscal Year 2014
  Results

Business Wire

ATLANTA -- August 29, 2013

American Software, Inc. (NASDAQ: AMSWA) today reported preliminary financial
results for the first quarter of fiscal 2014. The Company has delivered 50
consecutive quarters of profitability.

Key first quarter financial metrics:

  *Total revenues for the quarter ended July 31, 2013 were $23.3 million, a
    decrease of 10% over the comparable period last year.
  *Software license fee revenues for the quarter ended July 31, 2013 were
    $3.2 million, a decrease of 37% over the same period last year.
  *Services and other revenues for the quarter ended July 31, 2013 were $11.2
    million compared to $12.5 million for the same period last year, a
    decrease of 10%.
  *Maintenance revenues for the quarter ended July 31, 2013 were $8.9 million
    compared to $8.3 million, an increase of 6% over the same period last
    year.
  *Operating earnings for the quarter ended July 31, 2013 were $2.4 million,
    a decrease of 36% compared to the same period last year.
  *GAAP net earnings for the quarter ended July 31, 2013 were $1.6 million or
    $0.06 per fully diluted share, a decrease of 34% over the same period last
    year.
  *Adjusted net earnings for the quarter ended July 31, 2013, which excludes
    stock-based compensation expense and amortization of acquisition-related
    intangibles, were $1.9 million or $0.07 per fully diluted share compared
    to $2.7 million or $0.10 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 $3.8 million for the quarter ended July 31, 2013
    compared to $5.2 million for the quarter ended July 31, 2012. Adjusted
    EBITDA represents GAAP net earnings adjusted for amortization of
    intangibles, depreciation, interest income & other, net, 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 $70.6 million as of July 31,
2013. The Company increased cash and investments by approximately $4.3 million
when compared to July 31, 2012.

“First quarter license revenue was below our expectations,” stated Mike
Edenfield, president and CEO of American Software. “The global economic
outlook appears to be undermining business confidence and the ability to
commit capital to improve their supply chains. During the quarter, several
larger opportunities were delayed and pushed out into the future. However,
some of these have recently started negotiations with the Company.

“Amidst these unpredictable market conditions it’s important for companies to
increase visibility and become more flexible. The automated supply chain
management solutions in our software portfolio enable companies to better plan
and re-plan, react faster, and adapt in ways they never have before,”
continued Edenfield. “With improved visibility into real-time supply
conditions and collaboration within their businesses as well as with customers
and suppliers, companies are boosting operational efficiency and managing
inventory investments with greater precision and a keen focus on customer
service.”

Additional highlights for the first quarter of fiscal 2014 include:

Customers & Channels

  *Notable new and existing customers placing orders with the Company in the
    first quarter include: AGC Glass Products Company, Balkamp, Brightstar,
    Dolce Vita Footwear, Eveready Battery Company, Grainger Colombia, Hexcel
    Corporation, MEGlobal International FZE, Reliable Automatic Sprinkler, and
    Rocky Brands.
  *During the quarter, software license agreements were signed with customers
    located in the following 11 countries: Australia, Brazil, Canada, China,
    Colombia, Japan, New Zealand, Sweden, the United Arab Emirates, the United
    Kingdom and the United States.
  *NGC^® Software, a wholly-owned subsidiary of the Company, announced during
    the quarter that Cary Francis Group, a merchandising, marketing support
    and fulfillment company, implemented NGC’s Extended PLM software as an
    integrated solution for product lifecycle management, global
    sourcing/supply chain management, and CPSIA compliance.
  *Logility, a wholly-owned subsidiary of the Company, congratulated its
    customers Craft Brew Alliance, PartyLite and Sonoco Products on being
    named recipients of Manufacturing Executive’s 2013 Manufacturing
    Leadership 100 Award. Craft Brew Alliance and PartyLite’s winning projects
    in the Global Value Chain category highlighted each company’s successful
    programs to optimize their supply chains through the use of Logility
    Voyager Solutions™. Sonoco Products was recognized in the Operational
    Excellence category for its use of Voyager Solutions to improve its
    production, supply, demand, and S&OP processes to reduce costs and enhance
    agility.
  *Logility recognized the 25 recipients of the annual Gartner Supply Chain
    Top 25. In its ninth year, the 2013 Gartner Research Supply Chain Top 25
    recognized 9 Logility customers for their innovation and ability to
    develop and execute advanced supply chain principles. In all, nearly 40
    percent of the Top 25 rely on Logility Voyager Solutions™ and Demand
    Solutions® to power their supply chain success.

Company & Technology

  *Logility announced its ability to dramatically increase the speed and
    simplicity of supply chain to ERP integration. Through its work with
    AdapChain, Logility has reduced the cost and complexity associated with
    integration of our best-of-breed supply chain management software with
    enterprise resource planning (ERP) systems such as those from SAP, Oracle,
    Infor, and others. Logility’s template-based approach allows
    high-performance integrations to be completed in 30 to 60 days, at much
    lower risk and overall cost.
  *Logility Cloud Services, a comprehensive deployment portfolio, provides a
    flexible menu of services to accelerate the benefits of supply chain
    initiatives. Building on more than 10 years of cloud deployment
    experience, Logility’s customers are able to tap into the industry-leading
    and award-winning capabilities of Logility Voyager Solutions™ either as a
    Software-as-a-Service (SaaS), Hosted or On-Premise deployment.
  *Demand Management, Inc., a wholly-owned subsidiary of Logility, announced
    the availability of the Demand Solutions^® platform as a software as a
    service (SaaS) offering. This cloud-based release includes all the same
    functionality as the on-premise Demand Solutions platform, but is hosted
    remotely and available on a subscription basis.
  *Demand Management, Inc. announced the availability of business
    intelligence (BI) functionality within its Demand Solutions DSX platform.
    The solution now incorporates native BI into its data tables allowing
    users the ability to mine and share data efficiently across the supply
    chain.
  *During the first quarter, Demand Management Inc. launched the addition of
    sophisticated workflow technology to its Demand Solutions DSX supply chain
    planning suite. The new functionality enables customers to fully configure
    workflow by user and role.
  *Demand Management Inc. added Social™ Supply Chain and Social™ S&OP
    capabilities to its Demand Solutions DSX supply chain planning platform.
    This inventive use of social media technology is designed to help
    increasingly global manufacturers and distributors connect in real time to
    reduce cycle times and accelerate sales and operations planning.
  *Demand Management unveiled a Predictive Lead Time module for the Demand
    Solutions DSX platform. This feature offers users an advanced degree of
    precision in inventory planning which takes into account seasonal
    variables and enables better risk management visibility.
  *Demand Management, Inc. was named to the prestigious Top 100 Great Supply
    Chain Partner list by SupplyChainBrain. This is the company’s eighth time
    appearing on the list. Customers nominated the company for its significant
    impact on their efficiency, service and overall supply chain performance.
  *Logility was recognized as one of the top workplaces in Atlanta for the
    third consecutive year. The recognition is based on an Atlanta
    Journal-Constitution survey completed by employees of the Atlanta-area.
  *The editors of Supply & Demand Chain Executive named Logility, Demand
    Management and New Generation Computing to the 2013 Supply & Demand Chain
    Executive 100. The award highlights the "100 Great Supply Chain Projects"
    of the past year and marked the 11th year Logility has been honored and
    fifth year Demand Management has been recognized for enabling
    extraordinary supply chain initiatives.
  *Logility, Demand Management and New Generation Computing were each
    recognized by Inbound Logistics as 2013 Top 100 Logistics IT Providers.
    This marks the 16^th consecutive year Logility has been recognized and
    highlights each company’s ability to enable logistics excellence through
    innovative supply chain management solutions.

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 and Lonely Planet. 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)
                                                                
                                  First Quarter Ended                      
                                  July 31,                                 
                                  2013              2012              Pct Chg.
Revenues:
     License                      $  3,218          $  5,082          (37  %)
     Services & other                11,228            12,495         (10  %)
     Maintenance                    8,872           8,337         6    %
              Total Revenues        23,318          25,914        (10  %)
                                                                           
Cost of Revenues:
     License                         1,161             1,369          (15  %)
     Services & other                8,040             8,623          (7   %)
     Maintenance                    1,962           1,912         3    %
              Total Cost of         11,163          11,904        (6   %)
              Revenues
Gross Margin                        12,155          14,010        (13  %)
Operating expenses:
     Research and development        2,817             2,969          (5   %)
     Less: capitalized               (717     )        (863     )     (17  %)
     development
     Sales and marketing             4,394             4,821          (9   %)
     General and administrative      3,153             3,110          1    %
     Provision for doubtful          -                 127            nm
     accounts
     Amortization of
     acquisition-related             125               125            0    %
     intangibles
                                                                        
              Total Operating       9,772           10,289        (5   %)
              Expenses
Operating Earnings                  2,383           3,721         (36  %)
     Interest Income & Other, Net   44              273           (84  %)
Earnings Before Income Taxes         2,427             3,994          (39  %)
Income Tax Expense                  834             1,572         (47  %)
Net Earnings                      $  1,593         $  2,422         (34  %)
Earnings per common share: (1)
     Basic                        $  0.06          $  0.09          (33  %)
     Diluted                      $  0.06          $  0.09          (33  %)
                                                                           
Weighted average number of common
shares outstanding:
              Basic                  27,363            27,072
              Diluted                27,815            27,567
                                                                           
nm- not meaningful
                                                                           
                                                                           
AMERICAN SOFTWARE, INC.
NON-GAAP MEASURES OF PERFORMANCE
(In thousands, except per share data, unaudited)
                                                                           
                                  First Quarter Ended                      
                                  July 31,
                                  2013              2012              Pct Chg.
NON-GAAP EARNINGS PER SHARE:
Net Earnings (GAAP Basis)         $  1,593          $  2,422          (34  %)
     Income tax expense              834               1,572          (47  %)
     Interest Income & Other, Net    (44      )        (273     )     (84  %)
     Amortization of intangibles     768               769            0    %
     Depreciation                   261             274           (5   %)
EBITDA (earnings before interest,
taxes, depreciation and             3,412           4,764         (28  %)
amortization)
                                                                           
     Stock-based compensation       338             391           (14  %)
Adjusted EBITDA                   $  3,750         $  5,155         (27  %)
                                                   
EBITDA, as a percentage of          15       %       18       %
revenues
                                                   
Adjusted EBITDA, as a percentage    16       %       20       %
of revenues
                                                                           
                                                                           
                                                                           
                                                                           
                                                                           
                                  First Quarter Ended
                                  July 31,
                                  2013              2012              Pct Chg.
NON-GAAP EARNINGS PER SHARE:
Net Earnings (GAAP Basis)         $  1,593          $  2,422          (34  %)
     Amortization of
     acquisition-related             82                76             8    %
     intangibles (2)
     Stock-based compensation (2)   222             237           (6   %)
Adjusted Net Earnings             $  1,897         $  2,735         (31  %)
                                                                           
Adjusted non-GAAP diluted         $  0.07          $  0.10          (30  %)
earnings per 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 $0.06 and $0.09
for the three months ended July 31, 2013 and 2012.
(2) - Tax affected using the effective tax rate for the three months
period ended July 31, 2013 and 2012.
                                                                           
                                                                   
AMERICAN SOFTWARE, INC.
Consolidated Balance Sheet Information
(In thousands)
(Unaudited)
                                  July 31,          April 30,
                                  2013              2013
                                                                           
Cash and Short-term Investments   $  63,457         $  59,766
Accounts Receivable:
     Billed                          10,621            13,179
     Unbilled                       2,616           3,741    
Total Accounts Receivable, net       13,237            16,920
Prepaids & Other                    2,846           3,162    
Current Assets                       79,540            79,848
                                                                           
Investments - Non-current            7,103             6,658
                                                                           
PP&E, net                            4,255             4,482
Capitalized Software, net            8,800             8,708
Goodwill                             12,601            12,601
Other Intangibles, net               544               687
Other Non-current Assets            86              86       
Total Assets                      $  112,929       $  113,070  
                                                                           
Accounts Payable                  $  963            $  1,207
Accrued Compensation and Related     2,258             2,961
costs
Other Current Liabilities            3,226             2,969
Deferred Tax Liability - Current     112               332
Deferred Revenues                   19,606          21,291   
              Current Liabilities    26,165            28,760
                                                                           
Deferred Tax Liability - Long        1,092             1,066
term
                                                                           
Shareholders' Equity                 85,672            83,244
                                                   
Total Liabilities & Shareholders' $  112,929       $  113,070  
Equity
                                                                           

Contact:

American Software, Inc.
Vincent C. Klinges, 404-264-5477
Chief Financial Officer
 
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