Total revenues for the first quarter ended July 31, 2003 were $13.1 million compared to $14.6 million during the same period last year. For the first quarter, software license fees were $2.6 million compared to $3.0 million during the same period last year. Services and other revenues were $5.8 million compared to $6.5 million for the same period last year. Maintenance revenues were $4.6 million compared to $5.1 million during the same period last year. Operating income was $420,000 for the first quarter fiscal 2004 compared to $778,000 during the same period last year. Net earnings from continuing operations for the first quarter of fiscal year 2004 were $1.1 million compared to $988,000 from the same period last year. For the first quarter of fiscal 2004, the Company reported earnings per share (diluted) of $0.05 compared to earnings per share (diluted) of $0.04 for the first quarter of fiscal year 2003.

"We are pleased with our continued profitability and cash generation given the general market conditions and global economic uncertainty that continue to impact capital expenditures. We will utilize our financial strength to reinvest in the Company as well as return cash to our shareholders through our quarterly dividend which was announced during the first quarter,” said James C. Edenfield, President and CEO of American Software.

“As more companies seek to decrease costs and leverage global suppliers and manufacturing partners, the task of managing the supply chain grows exponentially with each partner,” continued Edenfield. “In order to keep pace and achieve needed visibility, companies are seeking the application tools in our product portfolio which provide the ability to reduce costs, optimize production and collaborate in real-time.”

The overall financial condition of the Company remains strong, with cash and investments of approximately $62.7 million and zero debt as of July 31, 2003. The Company’s cash and investment position increased by $2.2 million sequentially from April 30, 2003 and $5.3 million compared to July 31, 2002. During the first quarter, the Company purchased approximately 25,000 of its shares on the open market under the current stock buyback program at a cost of approximately $113,000. There are approximately 1.9 million shares remaining to purchase under the total authorization of 4.2 million shares.

Recent Highlights Include:

• On July 9, 2003, the Company announced initiation of a quarterly dividend policy, declaring the Company's initial quarterly cash dividend of $0.06 per share. The Company's first cash dividend is payable on September 19, 2003 to both Class A and Class B shareholders of record at the close of business on August 20, 2003.

Customers

• Notable new and existing customers placing orders with the Company in the first quarter of fiscal year 2004 include: Alberto-Culver Company, Joseph A. Banks Clothiers, Inc., Katun, Kellwood Company, SSA Global Technologies, VF Corporation and a leading manufacturer of branded apparel.
• The Company’s 86% owned subsidiary, Logility, Inc. (NASDAQ: LGTY), announced Bell® Sports, the world’s leading designer and marketer of helmets and accessories for bicycling and other active sports, has selected Logility Voyager Global Sourcing Management™ to streamline and manage the global design and production of its branded helmets, cycling accessories and fitness products. A long-time Logility customer, Bell Sports received a “Logility Leadership Award” for supply chain excellence in its use of Logility Voyager Solutions to reduce inventory by 25.9%, slash retail out-of-stocks by 234%, and increase sales by 20% through improved forecast accuracy and collaborative planning with customers and suppliers.
• Facet Technologies, a division of Matria Healthcare and innovative provider of medical devices for the healthcare industry, has selected Logility as its partner in driving supply chain management improvements.
• Saks Incorporated, widely regarded for its superior customer service and effective store replenishment strategy, was presented the “John Hewson Sailing to New Heights with Logility” award for supply chain excellence powered by Logility solutions. Saks’ deployment of Logility Voyager Demand Planning and Inventory Planning solutions enabled it to achieve immediate benefits as well as ongoing, continuous improvements in service levels, inventory turns and forecast accuracy for replenishment items.
• Logility announced the fifth annual Logility Leadership Award winners recognizing a select group of customers who have significantly improved their business operations through the deployment of Logility Voyager Solutions™. The 2003 Logility Leadership Award was presented to the following companies: Bell Sports, ConAgra Foods Grocery Foods Group, xpedx and a leading global pharmaceutical company.
• The Company announced that Confecciones del Valle has selected our wholly-owned subsidiary, New Generation Computing’s, Apparel Management Accounting System (AMAS) to improve its accounting and customer service operations. The software, which Confecciones del Valle will deploy in the Fall at its manufacturing plant in El Salvador, will enable the company to integrate its sales, distribution, finance, production planning, administration, accounting, electronic data interchange (EDI) and other functions onto one easy-to-use, PC-based system.
• The Company announced this quarter that Wilsons, The Leather Experts Inc. has installed New Generation Computing's e-Pack and e-Shipment Tracking software to gain inbound visibility of its entire production process. The installation of the two Web-based software modules, which are part of NGC's e-SPS product suite, will enable Wilsons Leather's sourcing and logistics teams to monitor and track the shipments of products in real time from factories in Asia to the company's distribution centers. “Inbound visibility will enable us to significantly improve our internal production and inventory controls," said Scott Christian, director of supply chain systems for Wilsons Leather. "The first e-SPS modules we installed have been easy to use and have made it possible for us to streamline many aspects of our sourcing of products.”
• The Company announced that Agrotec has selected New Generation Computing's Apparel Management Accounting System (AMAS) and The Production Manager (TPM) to manage its operations in El Salvador. The software, which Agrotec will install in August at its manufacturing plant in El Salvador, will enable the company to integrate multiple business processes -- sales, distribution, finance, production planning, administration, accounting, electronic data interchange, shop-floor control, incentive payroll and other functions -- onto one easy-to-use, PC-based system.

Products and Technology

• Logility’s Voyager Solutions release 7.0 was unveiled at Connections 2003, the company’s annual user group conference, providing a preview of its web-based collaborative supply chain optimization solutions. The new release focuses on streamlining and accelerating the collaborative supply chain between internal partners such as marketing, sales, finance, manufacturing, warehouse management and logistics as well as external trading partners such as customers, suppliers and carriers. The Logility Voyager Solutions 7.0 suite helps companies take a performance-driven view of the supply chain to reduce costs, optimize inventory investments, increase sales and improve customer service through innovative demand management, optimized supply chain planning, streamlined warehouse and transportation management and real-time visibility of global orders, inventories and key performance indicators across the supply chain.
• Logility announced that its Logility Voyager Solutions are fast becoming the preferred choice for companies who are brand owners of softgoods products, including seasonally-influenced consumer items such as apparel, footwear, furnishings, accessories and textiles. The company estimates that softgoods manufacturers and distributors are using Logility products to plan and optimize inventory representing more than $20 billion in annual revenue.
• Logility announced its repeat selection for three honors – one of Georgia’s 100 Top-Performing Companies (published by the Atlanta Journal-Constitution), one of MSI Magazine’s Top 100 Software Vendors, and one of Inbound Logistics Magazine’s Top 100 Logistics IT companies.
• The Company announced that New Generation Computing Inc. (NGC) introduced the 2003 version of e-SPS, Web-based strategic sourcing software that provides retailers, apparel manufacturers, brand managers and importers with end to-end visibility and the remote management of global production processes. "Sourcing executives are cutting back their travel to Asia and other regions where their own production facilities or vendors are located," said Alan Brooks, president of NGC. "We developed e-SPS 2003 with this in mind and expect to build on the success we've already experienced in the retail and apparel manufacturing sectors. The demand for e-SPS continues to rise as companies learn of the immediate ROI that major retailers and apparel manufacturers have enjoyed using our product."
• The Company announced the availability of Host-Access, a tool that extends American Software applications running on the IBM® zSeries® (S/390®) and IBM iSeries(TM) (AS/400®) platforms to web browsers, and enables customized graphical user interfaces.American Software's Host-Access uses the IBM WebSphere® Host Access Transformation Server (HATS) software, a component of IBM's powerful WebSphere Host Integration Solution suite (HIS) and a member of the IBM WebSphere family of products. American Software's Host-Access utilizes the HATS advanced rules-based transformation engine to apply American Software's enterprise application rules and screen customization, delivering HTML directly to the desktop requiring only a web browser. American Software has extended this web browser solution with additional web features such as cascading menu driven navigation, popup calendars, and popup selection windows to aid data entry. American Software's Host-Access provides a consistent web presentation to the company's strong supply chain management ERP solutions. Host-Access helps maximize end user productivity while taking advantage of the proven, security- rich, enterprise-class performance of IBM's Host Integration Solution.