• Software license fees for the quarter ended April 30, 2005 were $3.4 million, an increase of 17% over the fourth quarter of fiscal 2004;
• Services and other revenues for the quarter ended April 30, 2005 were $9.9 million, an increase of 61% over the fourth quarter of fiscal 2004;
• Maintenance revenue fees for the quarter ended April 30, 2005 were $5.4 million, an increase of 26% over the fourth quarter of fiscal 2004;
• Total revenues for the quarter ended April 30, 2005 were $18.7 million, an increase of 40% over the fourth quarter of fiscal 2004;
• Operating Income for the quarter ended April 30, 2005 was $689,000, an increase of 38% over the fourth quarter of fiscal 2004;
• Total cash and investments as of April 30, 2005 were $59.1 million, an increase of $2.2 million compared to January 31, 2005.

GAAP net earnings were $1.4 million or $0.06 per fully diluted share for the fourth quarter of fiscal 2005 compared to $221,000 or $0.01 per fully diluted share for the fourth quarter of fiscal 2004. Adjusted net earnings for the quarter ended April 30, 2005, which excludes the acquisition related intangibles costs ,an asset impairment charge and an income tax benefit was $1.7 million or $0.07 per fully diluted share compared to $303,000 or $0.01 per fully diluted share for the same period last year.

Total revenues for the twelve months ended April 30, 2005 were $64.6 million compared to $54.7 million for the same period last year. Software license fees for the twelve months ended April 30, 2005 were $12.3 million compared to $12.4 million for the same period last year. Services and other revenues for the twelve months ended April 30, 2005 were $32.8 million compared to $24.4 million for the same period last year. Maintenance revenues for the twelve months ended April 30, 2005 were $19.5 million compared to $17.9 million for the same period last year. For the twelve months ended April 30, 2005, the Company reported a GAAP net earnings of $5.2 million, or $0.21 per fully diluted share compared to a GAAP net earnings of $5.7 million or $0.23 per fully diluted share for the prior year. Adjusted net earnings for twelve months ended April 30, 2005, which excludes the acquisition related intangibles costs, an asset impairment charge and a tax benefit was $5.9 million or $0.24 per fully diluted share compared to $5.8 million or $0.24 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.

“American Software delivered an impressive 40% increase in revenue which was fueled by a 17% increase in license fees and 61% growth in services revenues compared to the same quarter of last year. This quarter’s positive results extended the Company’s track record of profitability and positive cash flow to seventeen consecutive quarters,” stated James C. Edenfield, president and CEO of American Software. “We will use our financial strength to reinvest in the Company as well as continue to provide a tangible benefit to our shareholders with a quarterly dividend.”

The overall financial condition of the Company remains strong with cash and investments of approximately $59.1 million and no debt. The Company’s cash and investment position increased approximately $2.2 million compared to January 31, 2005.

Highlights for the fourth quarter and fiscal year 2005 include:

Customers

• Notable new and existing customers placing orders with American Software in the fourth quarter include Able Distribution Company, Burberry, Inc., Caremark International, Inc., Carole Hochman Design Group, Farley’s & Sathers Candy Company, Inc., Hamilton Beach, Honeywell, JJ Mae, Inc., Komatsu, Metal Building Systems, Petroleos de Venezuela, S.A., Republic Beverage Company and XanGo.
• During the quarter, software license agreements were signed with customers located in 13 countries including Australia, Belgium, China, El Salvador, Germany, Italy, Malaysia, Mexico, Poland, Switzerland, the United Kingdom, the United States and Venezuela.
• The Company announced that Petroleos de Venezuela, S.A. ("PDVSA") has upgraded and licensed 16 server copies of its ERP software applications suite to run on an IBM eServer iSeries(TM) platform. The American Software solutions will be used to support PDVSA's oil lubrication facilities throughout Venezuela.
• Logility, our 87% owned subsidiary, held “The Logility Connections 2005: Catch the Wave—Supply Chain ROI” conference on March 16-18 in Atlanta and offered attendees the opportunity to hear best practices from industry peers, learn valuable tips for maximizing return on investment, and gain insight from leading supply chain experts to help prepare for the next wave of demand-driven supply chain improvement.
• In February 2005, supply chain professionals gathered in San Antonio for the 18th Annual Demand Management Association Conference. The meeting included informative user presentations, industry briefings and the introduction of new product features for the DS One product suite. The conference proved to be an excellent forum for Mike Edenfield, Logility president and CEO, to meet with a large group of Demand Solutions users and discuss Logility’s vision for the future. The Demand Management Association is the organization for users of Demand Solutions software from Demand Management, Inc. (DMI), a wholly owned subsidiary of Logility.
• The Logility International User Group Conference took place in Manchester, UK, in April 2005. The event included features from the Robert Horne Group, which discussed its swift upgrade to Logility Voyager Solutions 7.0; and Honeywell, which discussed using Logility Voyager Collaborate for sales and operations planning.
• Logility named Remy International, North America’s largest producer of remanufactured starters and alternators for the automotive aftermarket, as the recipient of the 2005 Sailing to New Heights with Logility Award for supply chain excellence. This award is the highest honor given annually to the Logility customer that has leveraged innovation and collaboration to drive measurable business improvements and supply chain excellence through the deployment of Logility Voyager Solutions™. Remy implemented Logility Voyager Solutions in 2004 to reduce demand volatility and improve factory scheduling; generate a one-number forecast for its business; decrease inventory; and streamline the sales and operations planning process.
• Logility presented 2005 Leadership Awards to the following companies:
  • Nestlé Purina Petcare, a leading manufacturer of dry and canned dog food, dry and canned cat food and cat box filler in the United States, has used Logility Voyager Solutions to improve payment and audit of carrier freight bills while reducing costs. The company deployed Logility Voyager Transportation Planning and Management at its plants last year.
  • Robert Horne Group, the UK's leading supplier of paper, board and plastics to the visual communications industry, has used Logility Voyager Solutions to plan more effectively and operate more efficiently. Logility was live in less than seven weeks, and the deployment paid for itself in less than three months, delivering an immediate 15% reduction in stock costs, and a current total 30% reduction in stock costs.
  • Tiffany & Co., the internationally renowned retailer, designer and manufacturer of fine jewelry, timepieces and tabletop, has used Logility Solutions to reduce demand variability and increase forecast accuracy.
  • The Coleman Company, Inc., a leading manufacturer, marketer and distributor of recreational, camping and outdoor products, has used Logility Voyager Solutions to reduce transportation costs, improve customer service and on-time deliveries; and provide more consistent lower-cost carrier selection.
  • Williamson-Dickie Manufacturing, a privately held global manufacturer of work wear, has used Logility Voyager Solutions to improve forecast accuracy, lower supply chain cost, and support a sales and operations planning process.
• New Generation Computing Inc. (NGC), a wholly owned subsidiary of American Software, announced that ArcticShield has selected NGC's SQL Series. The software suite will help the company increase speed to market, reduce costs, manage by exception and enhance workflow. "NGC has proven to be a pioneer in the apparel consumer products industry when it comes to developing cutting-edge technology," said J.T. Griffin, president of ArcticShield.
• New Generation Computing announced that Rocky Shoes and Boots Inc. has selected NGC's Web-based sourcing and production system, e-SPS to help streamline its global production of footwear. Rocky Shoes and Boots installed the e-SPS software to enable its sourcing team to complete steps in the production lifecycle in real time via the Internet.
• New Generation Computing announced that Broder Bros. Co. selected NGC's Web-based sourcing and production system, e-SPS, along with its product data management module, e-PDM, to streamline global sourcing and production. With e-SPS and e-PDM, the company's sourcing operation will have the ability to complete steps in the production of in-process and finished goods as well as gain end-to-end visibility of the entire global production process.

Products and Technology

• Logility unveiled Logility Voyager Solutions 7.5 to attendees at Connections 2005. The latest version, which will be commercially available in summer 2005, includes enhancements to help distribution-intensive companies use the Internet to gain visibility of key metrics; manage dynamic global supply chain activities; support radio frequency identification (RFID) initiatives; optimize transportation operations; and accelerate sales and operations planning (S&OP) processes. Enhanced performance management capabilities are embedded across all areas of Logility Voyager Solutions. Key functionality by business process area includes:
  • Demand chain planning—enhanced Web-based forecast management, forecast modeling, life cycle planning and time-phased safety stock methods
  • Supply chain planning—expanded load optimization and shelf live capabilities, and new plant level KPIs and alerts
  • Transportation planning and management—additional shipment planning and execution features
  • Built-in RFID support, warehouse management additions and support for Lightweight Directory Access Protocol (LDAP)
  For more detailed information, please reference the March 17, 2005 press release, Logility Voyager Solutions 7.5 Debut at Connections 2005.