US: NGC parent reports preliminary FY 2009 results
25 June 2009 | News | Source: NGC Software
American Software, Inc. today reported financial results for the fourth quarter and fiscal year 2009, achieving 33 consecutive quarters of profitability.
Key fourth quarter financial highlights include:
- Total revenues for the quarter ended April 30, 2009 were $18.9 million, a decrease of 12% over the fourth quarter of fiscal 2008;
- Software license fees for the quarter ended April 30, 2009 were $4.8 million, an increase of 3% over the fourth quarter of fiscal 2008;
- Services and other revenues for the fourth quarter ended April 30, 2009 were $7.2 million; a decrease of 25% over the fourth quarter of fiscal 2008;
- Maintenance revenues for the quarter ended April 30, 2009 were $6.9 million, a decrease of 5% over the fourth quarter of fiscal 2008;
- Operating earnings for the quarter ended April 30, 2009 were $1.8 million, an increase of 45% over the fourth quarter of fiscal 2008; and
- Commencement of a Tender Offer for all shares of Logility not owned by American Software at $7.02 per share.
GAAP net earnings were approximately $1.2 million or $0.05 per fully diluted share for the fourth quarter of fiscal 2009 compared to $897,000 or $0.03 per fully diluted share for the same period last year. Adjusted net earnings for the quarter ended April 30, 2009, which excludes stock-based compensation expense, acquisition-related amortization of intangibles and expenses related to the Logility Tender Offer, were $1.6 million or $0.06 per fully diluted share, compared to $1.1 million or $0.04 per fully diluted share for the same period last year, which excluded stock-based compensation expenses and acquisition-related amortization of intangibles.
Total revenues for the twelve months ended April 30, 2009 were $78.0 million or a 12% decrease compared to $89.0 million for the prior fiscal year. Software license fees for the twelve-month period were $16.1 million or a 15% decrease compared to $19.0 million during the prior fiscal year. Services and other revenues were $33.9 million or a 19% decrease compared to $41.7 million in the prior fiscal year. Maintenance revenues were $28.0 million or a 1% decrease for the twelve months ended April 30, 2009 compared to $28.4 million for the prior fiscal year. For the twelve months ended April 30, 2009, the Company reported operating earnings of approximately $7.2 million, an 11% decrease compared to operating income of $8.1 million for the prior fiscal year. GAAP net earnings were approximately $3.0 million or $0.12 per fully diluted share for the twelve months ended April 30, 2009 compared to $6.5 million or $0.25 per fully diluted share for the same period last year. Adjusted net earnings for the year ended April 30, 2009, which excludes stock-based compensation expense, acquisition-related amortization of intangibles and expenses related to the Logility tender offer, were $4.0 million or $0.15 earnings per fully diluted share compared to $8.1 million or $0.30 earnings per fully diluted share for the prior fiscal year, which excluded stock-based compensation expense, acquisition-related amortization of intangibles and write-down of capitalized software costs.
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 of operations.
The overall financial condition of the Company remains strong, with cash and investments of approximately $71.1 million and no debt as of April 30, 2009. This is approximately a $773,000 increase when compared to January 31, 2009. During the fourth quarter, the Company repurchased 6,200 shares of its common stock for approximately $21,000 under its authorized stock repurchase program and paid approximately $2.3 million in dividends.
"The Company experienced continued profitability despite the uncertain economic environment. For fiscal year 2009, we served 79 new customers, made significant stock repurchases and continued our healthy investment in research and development," stated James C. Edenfield, president and CEO of American Software. "With 33 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."
"Our focus is on helping companies leverage their supply chains to create operational, market and brand advantages that drive results in both good and difficult economic environments," continued Edenfield. "Our sustained profitability has continued to allow the Company to provide a tangible benefit to our shareholders with a quarterly dividend as well as a share repurchase program. On May 19, 2009 our Board of Directors authorized the Company's next quarterly dividend of $0.09 per common share, which is payable on September 25, 2009 to shareholders of record at the close of business on August 21, 2009."
As previously announced on May 22, 2009, the Company commenced a Tender Offer to acquire all the shares of its majority-owned subsidiary, Logility, Inc. (Nasdaq: LGTY - News) not owned by the Company for $7.02 per share. The Tender Offer is scheduled to end at 12:00 midnight on June 25, 2009. For a complete description of the Tender Offer and its terms and conditions, please see the American Software, Inc. and Logility, Inc. filings at http://www.sec.gov/edgar.
Additional highlights for the fourth quarter of fiscal year 2009 include:
Customers and Channels:
- Notable new and existing customers placing orders with the Company in the fourth quarter include: Argosy Trading, Bernhardt Furniture Company, Billabong International Limited, Caulfield Preparatory, Constellation Brands, Doosan Trading, Formica, J Brand, Johnson Diversey, Porsche Cars of North America, Ridge Tools, Rockline Industries, Sony Electronics, Time Customer Service, Trek Bicycle, Tyndale, and Ventura Foods.
- During the quarter, software license agreements were signed with customers located in 11 countries including: Australia, Canada, The Republic of Cyprus, France, Honduras, Ireland, Italy, The Netherlands, Spain, The United Kingdom and The United States.
- New Generation Computing® (NGC®), a wholly-owned subsidiary of American Software, announced that Topson Downs, a private label manufacturer of women's and children's apparel for the industry's leading retailers, has selected NGC's e-PLM and e-SPS software as an integrated, end-to-end solution to streamline PLM and global sourcing business processes, improve efficiency and speed time to market for the private label apparel manufacturer.
- NGC announced that Ramp Logistics, a rapidly growing West Coast warehouse and logistics company, has selected NGC's RedHorse apparel ERP software. Ramp Logistics will provide RedHorse as an additional offering to its customer base of high-end apparel, footwear and accessory brands, allowing smaller companies to access the power of NGC's complete ERP solution that is designed for the apparel industry.
Products and Technology:
- NGC® announced the availability of RedHorse® 2009, the leading ERP solution for apparel, footwear and fashion. RedHorse 2009 takes information access and web functionality to a new level, with secure web access now available to management and internal users, as well as customers. New features highlights include enhanced web functionality, flexible reporting options, secure credit card processing, and multi-currency selling.
- NGC® announced the release of its CPSIA Compliance Software, which is designed to streamline all testing processes and ease the burden of the Consumer Product Safety Improvement Act (CPSIA). The CPSIA software allows retailers and manufacturers to easily manage the process of requesting, tracking, approving and sending the General Certificate of Conformity (GCC) and Certificate of Compliance (COC) documents that are mandated by the CPSIA. In addition, NGC's software allows companies to manage the dozens of third-party lab tests that are required for apparel design and production.
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