American Software Reports First Quarter Results /

American Software, Inc. (Nasdaq: AMSWA) today reported revenues and earnings for the first quarter of fiscal year 2000, ended July 31, 1999. First quarter results represent a continued improvement in license fee revenues and profitability and exceed analysts' revenue and earnings estimates. For the first quarter ended July 31, 1999, software license fees were $6.3 million, a 22% improvement over the same period last year. Services revenues were $15.7 million, a 2% increase from the same quarter last year. Maintenance revenues were $6.2 million, a 7% decrease over the same period in fiscal 1999. Total revenues for the quarter were $28.2 million, a 3% increase over the same quarter last year. Net income was $904,000 or $.04 per diluted share, a substantial improvement from last year's net loss of $3.6 million or $.16 per basic share excluding a nonrecurring item of $1.8 million or $.08 per share for the comparable period last year. "We are pleased to start the new fiscal year reporting continued revenue and profitability growth," stated James C. Edenfield, president and CEO of American Software. "We are excited by the potential increased revenue contribution from our Internet commerce initiatives spanning the new ECON (Electronic Commerce Over the Net) product family, AmQUEST, our application service provider, and the custom projects and services delivered by our subsidiary, Intellimedia Commerce. "American Software has the unique ability to provide comprehensive solutions that leverage our broad portfolio of products and services to help companies increase agility, reduce supplier costs, expand productivity and improve customer responsiveness," Edenfield continued. "As an example, we are delivering a unique combination of products, professional services and facilities outsourcing to manage and optimize the mission critical logistics operations for one of the world's largest digital wireless communications companies." The overall financial condition of the Company remains very strong with cash and investments of approximately $50 million. The Company continued its share buyback plan under which the Board of Directors has authorized the purchase of up to 2.2 million shares in open market transactions. During the quarter, approximately 157,000 shares were purchased at an average price of $3.96, bringing the total shares purchased under the plan to nearly 1.4 million shares. First Quarter Highlights Include: * American Software received a contract to deliver an expanded array of products, professional services and outsourcing to optimize the logistics operations for one of the world's largest digital wireless communications companies. * Prestige Plastics, Inc., Oshkosh Trucking and American Efird became new American Software customers selecting a variety of products and services to streamline their operations. * Intellimedia Commerce, Inc. continues to work with a number of early stage clients to incubate and launch Internet based ventures. Intellimedia provides Internet commerce services including technical design and prototyping, business modeling, product development and execution of direct marketing programs. * The Company's 84% owned subsidiary, Logility (Nasdaq: LGTY), the leading supplier of collaborative value chain planning solutions via the Internet, added ConAgra and Allied Signal as notable new customers. * Logility launched its i-Commerce initiative, consisting of four levels of products and services:

1. Logility Value Chain Solutions -- internet-enabled end- to-end value chain applications

2. i-Commerce Collaboration Solutions -- solutions that expand the number of business processes that can be executed electronically via the Internet such as collaborative planning, forecasting and replenishment (CPFR)

3. i-Community -- enabling companies to collaborate with a network of trading partners

4. i-Connection -- applications hosting and applications management services * American Software was named # 27 in the annual Manufacturing Systems survey of the top 100 software companies, noted by Inbound Logistics as one of the top 100 Logistics IT Companies in April 1999 and named one of Start Magazines' "Hottest Companies of the Year" in the July, 1999 issue. Headquartered in Atlanta, American Software develops, markets and supports the industry's most comprehensive offering of integrated business applications, including enterprise-wide, supply chain management, Internet commerce, financial, warehouse management and manufacturing packages. Intelliprise(TM) is a total ERP/supply chain management suite, which leverages Internet connectivity and includes multiple manufacturing methodologies, flexible international organizations and integrated data marts. The Company's Flow Manufacturing(R) solution is the first dedicated application for automating demand-based manufacturing operations as a best-of-class client/server extension to existing ERP systems. Additionally, American Software holds 84% ownership in Logility Inc., the leading supplier of collaborative value chain planning solutions via the Internet. Forward-Looking Statements This press release contains forward-looking statements, which 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. Such factors include, but are not limited to, changes in general economic conditions, technology and other changes in the market for the Company's products and services, the timely availability and market acceptance of these products and services, the effect of competitive products and pricing, and the irregular pattern of the Company's revenues as well as a number of other factors which could effect the future performance of the Company. For further information, please refer to the Company's Form 10-K for the year ended April 30, 1999 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact: American Software, 470 East Paces Ferry Rd., Atlanta, GA 30305 800-726-2946. 404-261-4381. FAX: 404-264-5206 INTERNET: or E-mail: Flow Manufacturing is a registered trademark and Intelliprise, ECON/Order, ECON/Expense and ECON/Catalog are trademarks of American Software, Inc.


Statements of Operations

(In thousands except per share data)


First Quarter Ended

July 31,


1999 1998 Chg. Revenues:

License $6,277 $ 5,158 22%

Services 15,747 15,502 2%

Maintenance 6,211 6,707 (7%)

Total Revenues 28,235 27,367 3% Cost of Revenues:

License 1,328 3,216 (59%)

Services 11,583 9,692 20%

Maintenance 2,685 2,335 15%

Total Cost of Revenues 15,596 15,243 2% Gross Margin 12,639 12,124 4% Operating expenses:

Research and development, net 2,157 3,813 (43%)

Marketing and sales 6,492 8,393 (23%)

General and administrative 3,405 4,425 (23%)

Charge for In-Process R&D --- 1,800 nm

Total operating expenses 12,054 18,431 (35%) Operating income (loss) 585 (6,307) nm

Other income 426 572 nm

Minority interest (107) 529 nm Income (loss) before taxes 904 (5,206) nm

Income taxes expense/(benefit) --- 200 nm Net Income (loss) after non-recurring charge/(credit) $904 $(5,406) nm Net Income (loss) before non-recurring charge/(credit) $904 $(3,606) nm Net income/(loss) per common share after non-recurring credits -- Diluted* $0.04 $(0.24) nm Net income/(loss) per common share before non-recurring credits -- Diluted* $0.04 $(0.16) nm Weighted average common shares -- Diluted * 22,280 22,739 * Diluted weighted average common shares outstanding are not included in the quarter ended July 31, 1998 calculation due to the anti-dilution of the net loss. nm -- not meaningful

Capsule Balance Sheet Information

(in thousands)


July 31,

1999 Cash and investments $49,564 Accounts receivable:

Billed 16,650

Unbilled 3,706 Total accounts receivable 20,356 Working capital 42,304 Deferred revenues 16,804 Stockholders' equity 67,487 ots Original Text Service: American Software, Inc. Internet: Contact: Vincent C. Klinges Vice President of Finance of American Software, Inc. (USA) 404-264- 5477 Company News On-Call: or Fax, 800-758-5804, ext. 048263 Web site:

Keywords PROTEXT-American Software Inc.

USA, Canada, U.N.

IT, telecommunications

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