Mergers and Acquisitions - Logility Parent disposed of its 100% equity interest in The Proven Method for approximately $2.1 million in cash in September 2023[24]. - Logility Parent entered into a Merger Agreement with Aptean, where each share of Logility Parent's common stock will be converted into the right to receive $14.30 in cash upon completion of the merger[28]. - The merger is expected to be completed in the second quarter of calendar year 2025, subject to regulatory approvals and other closing conditions[32]. - Logility Parent's Board of Directors unanimously approved the Merger Agreement, determining it to be fair and in the best interests of shareholders[29]. - On September 18, 2023, the company disposed of its IT staffing firm, TPM, for approximately $2.1 million, allowing a focus on core supply chain planning business[75]. - Logility, Inc. acquired Garvis AI Limited for approximately $25.0 million, with $16.2 million allocated to goodwill[73]. - The acquisition of Garvis is expected to enhance Logility's supply chain management platform with the new Demand AI+ solution, integrating AI for demand forecasting[72]. Revenue Recognition and Financial Performance - The Company recognizes revenue from Software-as-a-Service (SaaS), licenses, professional services, and maintenance, with SaaS revenue generally recognized ratably over the term of the arrangement[37][38]. - Revenue from perpetual software licenses is recognized once the license period has begun and the software is made available to the client[39]. - Logility Parent's revenue recognition practices include billing for SaaS solutions and maintenance in advance, typically on a monthly, quarterly, or annual basis[45]. - The Company has an established history of collecting under the terms of its software license contracts without providing refunds or concessions[45]. - Total revenues for the three months ended January 31, 2025, were $25.0 million, a slight decrease from $25.5 million for the same period in 2024, representing a decline of about 2%[51]. - Domestic revenue for the three months ended January 31, 2025, was $19.4 million, compared to $20.0 million in the same period of 2024, reflecting a decrease of approximately 3.2%[51]. - International revenue for the three months ended January 31, 2025, was $5.6 million, slightly up from $5.5 million in the same period of 2024, showing a marginal increase of about 1.8%[51]. - Total revenue for the nine months ended January 31, 2025, was $76,485,000, a slight decrease of 0.8% compared to $77,127,000 for the same period in 2024[92]. - For the three months ended January 31, 2025, Supply Chain Management segment revenue was $24,192,000, a decrease of 2.2% from $24,741,000 in the same period of 2024[92]. - The Other segment reported a revenue of $815,000 for the three months ended January 31, 2025, compared to $795,000 in the same period of 2024, reflecting a growth of 2.5%[92]. Deferred Revenue and Commissions - Deferred revenue as of January 31, 2025, was $38.1 million, down from $47.6 million as of April 30, 2024, indicating a decrease of approximately 20%[48]. - The aggregate amount of transaction price allocated to remaining performance obligations was approximately $111.0 million, with an expectation to recognize revenue on about 55% of these obligations over the next 12 months[48]. - Total deferred commissions as of January 31, 2025, were $2.0 million, down from $2.5 million as of April 30, 2024, indicating a decrease of 20%[51]. Earnings and Losses - Basic loss per share for the three months ended January 31, 2025, was $(0.08), consistent with the same period in 2024[60]. - Diluted loss per share for Class A common shares for the three months ended January 31, 2025, was also $(0.08)[61]. - The company recorded total stock-based compensation costs of approximately $1.4 million for stock options and $0.2 million for RSUs during the three months ended January 31, 2025[79]. - Total operating loss for the three months ended January 31, 2025, was $(3,513,000), a decrease of 531% compared to an operating income of $815,000 in the same period of 2024[157]. Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended January 31, 2025, was $(13,843,000), compared to $7,916,000 provided in the same period of 2024[169]. - Cash and cash equivalents decreased to $34,359,000 as of January 31, 2025, from $55,854,000 a year earlier, while total cash and short-term investments increased slightly to $79,274,000 from $78,308,000[173]. - Days Sales Outstanding in accounts receivable improved to 82 days as of January 31, 2025, from 86 days a year earlier, indicating better cash collection timing[174]. Expenses - Research and development expenses increased to $4,748,000 for the three months ended January 31, 2025, representing 19% of total revenue, compared to 18% in the prior year[151]. - Sales and marketing expenses rose to $6,164,000 for the three months ended January 31, 2025, accounting for 25% of total revenue, compared to 20% in the prior year[151]. - General and administrative expenses increased significantly to $9,164,000 for the three months ended January 31, 2025, representing 37% of total revenue, compared to 23% in the prior year[151]. - Sales and marketing expenses as a percentage of revenue increased from 20% to 25% for the three months ended January 31, 2025, and from 21% to 22% for the nine months, primarily due to an accrual of $1.1 million related to the Starboard Acquisition earnout target[154]. - General and administrative expenses as a percentage of revenue increased from 23% to 37% for the three months ended January 31, 2025, and from 22% to 27% for the nine months, mainly due to $3.5 million related to the Merger Agreement[155]. Market and Economic Conditions - The Company anticipates that the challenging global macro-economic environment will require clients to improve productivity and profitability by upgrading their technology systems[104]. - The International Monetary Fund projects global growth at 3.3% for both 2025 and 2026, which is below the historical average of 3.7%[103]. - The company has been affected by inflation, leading to increased costs of employee compensation and operating expenses[183]. Client Base and Market Position - No single client accounted for more than 10% of total revenue for the three and nine months ended January 31, 2025, indicating a diversified client base[93]. - Logility is recognized as a Leader in the 2024 Gartner Magic Quadrant for Supply Chain Planning Solutions, highlighting its strong vision and execution capabilities[112]. - The company serves approximately 500 clients across 80 countries, focusing on key verticals such as apparel, food and beverage, and consumer packaged goods[114]. Investment and Financial Management - The fair market value of the company's investment portfolio was approximately $72.9 million as of January 31, 2025, down from $73.9 million as of January 31, 2024[180]. - The company manages interest rate risk by maintaining a portfolio of high credit quality investments with relatively short average maturities[180]. - Future investment income may fall short of expectations due to interest rate fluctuations and stock market volatility[182].

Revenue and Subscription Fees - Subscription fees for Q3 FY 2025 were $14.8 million, a 5% increase from $14.1 million in the same period last year[5] - Total revenues for Q3 FY 2025 decreased 2% to $25.0 million, down from $25.5 million year-over-year, primarily due to a decline in services and maintenance revenue[5] - Maintenance revenues for Q3 FY 2025 decreased 12% to $6.8 million compared to $7.7 million in the same period last year[5] - Professional services and other revenues for Q3 FY 2025 decreased 21% to $2.7 million from $3.4 million year-over-year[5] - Total revenues for the nine months ended January 31, 2025, were $76.5 million, compared to $77.1 million for the same period last year[7] - Subscription fees increased by 5% to $14,818 million in Q3 2025 compared to $14,114 million in Q3 2024[17] - Total revenues decreased by 2% to $25,007 million in Q3 2025 from $25,536 million in Q3 2024[17] - Professional services and other revenues declined by 21% to $2,712 million in Q3 2025 compared to $3,418 million in Q3 2024[17] Net Income and Loss - GAAP net loss from continuing operations for Q3 FY 2025 was ($2.8) million or ($0.08) per fully diluted share, compared to net income of $4.2 million or $0.12 per fully diluted share for the same period last year[8] - Net loss from continuing operations was $2,758 million in Q3 2025, a significant decrease from a profit of $4,152 million in Q3 2024[17] - For the third quarter ended January 31, 2025, the company reported a net loss of $0.08 per share, compared to earnings of $0.12 per share in the same period last year, representing an 86% decline[19] - Adjusted net earnings from continuing operations decreased by 26% to $0.14 per share for the third quarter, down from $0.19 per share in the prior year[19] Operating Expenses - Operating expenses rose by 30% to $20,267 million in Q3 2025 from $15,631 million in Q3 2024[17] - Operating expenses increased by 65% to $573 million for the nine months ended January 31, 2025, compared to $347 million in the same period last year[19] Cash and Investments - The company reported a cash and investments balance of approximately $79.3 million as of the end of Q3 FY 2025[10] - Cash and cash equivalents at the end of the period were $34.359 million, down from $59.512 million at the beginning of the period, indicating a decrease of 42%[20] - The company reported a net cash used in operating activities of continuing operations of $(13.845) million for the nine months ended January 31, 2025, compared to $7.916 million provided in the previous year[20] Acquisition - Logility will not be hosting an earnings conference call for Q3 FY 2025 due to the pending acquisition by Aptean[3] - Aptean has agreed to acquire Logility for $14.30 per share in an all-cash transaction, expected to close in Q2 FY 2025[2] Research and Development - Research and development expenses increased by 4% to $4,748 million in Q3 2025 compared to $4,546 million in Q3 2024[17] - Research and development expenses increased by 12% to $195 million for the third quarter compared to $174 million in the prior year[19] Dividends and Liabilities - The company paid dividends totaling $11.027 million during the nine months ended January 31, 2025, slightly down from $11.272 million in the previous year[20] - Total liabilities decreased to $54.873 million as of January 31, 2025, from $61.963 million as of April 30, 2024, a reduction of 11%[19]

Revenue Recognition and Performance Obligations - The company recognized $33.5 million of revenue from deferred revenue during the six months ended October 31, 2024[45]. - As of October 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $120.0 million, with an expectation to recognize revenue on approximately 52% over the next 12 months[46]. - The company expects to recognize revenue on the remaining performance obligations after the next 12 months[46]. - The company’s revenue from Software-as-a-Service (SaaS), licenses, professional services, and maintenance is recognized based on the transfer of control of promised goods or services[34]. - The company’s deferred revenue balance as of October 31, 2024, was $38.1 million, down from $47.6 million at April 30, 2024[46]. Financial Performance - The company reported domestic revenues of $19.8 million for the three months ended October 31, 2024, compared to $20.1 million for the same period in 2023, reflecting a decrease of 1.3%[49]. - International revenues for the three months ended October 31, 2024, were $5.5 million, down from $5.6 million in the same period of 2023, a decrease of 2.5%[49]. - Total revenue for the three months ended October 31, 2024, decreased by 2% to $25,286 thousand compared to $25,690 thousand in the same period last year, primarily due to a 68% decrease in license fees[134]. - For the six months ended October 31, 2024, total revenue remained flat at $51,478 thousand compared to $51,591 thousand in the same period last year, with an 8% increase in subscription revenue[137]. - Revenue from Supply Chain Management for the three months ended October 31, 2024, was $24,507,000, a decrease of 1.3% from $24,828,000 in 2023[100]. Earnings and Losses - Basic loss per share for Class A and B common shares for the three months ended October 31, 2024, was $(0.06) each[61]. - Net loss earnings attributable to common stockholders for the three months ended October 31, 2024, was $(1,986,000) for Class A and $(32,000) for Class B[61]. - Total net earnings attributable to common stockholders for the six months ended October 31, 2023, was $4,838,000 for Class A and $273,000 for Class B[66]. - The company faced a 39% decrease in license fees for the six months ended October 31, 2024, compared to the same period last year[137]. - The company reported a 240% increase in earnings before income taxes for the three months ended October 31, 2024, compared to the same period last year[131]. Dividends and Shareholder Returns - The company declared a quarterly cash dividend of $0.11 per share, payable on November 29, 2024[53]. - Distributed earnings for Class A common shares for the six months ended October 31, 2024, totaled $7,107,000, while Class B common shares totaled $260,000[61]. - Total distributed earnings for Class A common shares for the three months ended October 31, 2023, was $3,556,000, while Class B common shares was $201,000[65]. Acquisitions and Disposals - The company disposed of its 100% equity interest in The Proven Method for approximately $2.1 million in cash in September 2023[29]. - The company acquired 100% of Garvis AI Limited for approximately $25.0 million, with $16.2 million allocated to goodwill[75][77]. - The company disposed of its IT staffing firm, TPM, for approximately $2.1 million in cash, allowing a focus on core supply chain planning business[80]. Cash Flow and Liquidity - Cash equivalents as of October 31, 2024, totaled $40.454 million, with U.S. Treasury securities at $39.631 million[92]. - Cash and cash equivalents decreased to $44,589 thousand as of October 31, 2024, from $62,971 thousand as of October 31, 2023[186]. - Net cash used in operating activities of continuing operations was $(7,321) thousand for the six months ended October 31, 2024, compared to $6,436 thousand for the same period in 2023[182]. Operational Metrics - Days Sales Outstanding in accounts receivable improved to 61 days as of October 31, 2024, from 72 days as of October 31, 2023[187]. - The total number of full-time personnel decreased to 392 as of October 31, 2024, from 423 as of October 31, 2023[167]. - The company serves approximately 550 clients across 80 countries, primarily in key vertical markets such as apparel, food and beverage, and consumer packaged goods[121]. Cost Management and Expenses - The company has been affected by inflation, leading to increased costs of employee compensation and operating expenses[196]. - The company attempts to recover increased costs through periodic price increases, as permitted by the marketplace[196]. - Research and development expenses remained stable at 17% of total revenue for both the three and six months ended October 31, 2024[131]. - General and administrative expenses remained relatively flat at 23% and 22% for the three and six months ended October 31, 2024, respectively[166]. Internal Controls and Compliance - The company completed remediation of a previously disclosed material weakness in internal control over financial reporting as of July 31, 2024[201]. - There were no changes in the company's internal control over financial reporting during the quarter ended October 31, 2024, that materially affected its internal controls[202].

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock ali ...

Table of Contents _________________ _________________ _________________ _________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 000-12456 AMERICAN SOF ...

Core Viewpoint - American Software (AMSWA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. Impact of Earnings Estimate Revisions - Rising earnings estimates for American Software suggest an improvement in the company's underlying business, which is expected to drive the stock price higher [3]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. Current Earnings Estimates for American Software - For the fiscal year ending April 2025, American Software is expected to earn $0.38 per share, reflecting a year-over-year decline of -25.5% [5]. - Over the past three months, the Zacks Consensus Estimate for American Software has increased by 5.6% [5]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings across over 4000 stocks, with only the top 5% receiving a 'Strong Buy' rating [6]. - The upgrade of American Software to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [7].

Financial Data and Key Metrics Changes - For Q1 2025, revenues were $26.2 million, a 1% increase from $25.9 million in the same period last year, driven by higher subscription fees and professional services [11] - Subscription fees increased 7% year-over-year to $14.8 million compared to $13.8 million [11] - Adjusted EBITDA margin rose to nearly 18%, reflecting improved gross margins and disciplined expense management [5] - Gross margin improved to 67% from 65% in the prior year [12] - Net income was $2.1 million or earnings per diluted share of $0.06, down from $2.6 million or $0.08 per diluted share last year [14] Business Line Data and Key Metrics Changes - Professional services revenue increased 5% to $3.9 million compared to $3.7 million in the same period last year [12] - Maintenance revenues declined 11% year-over-year to $7.3 million, impacted by the divestiture of the transportation group [12] - Total recurring revenues, comprising subscription and maintenance fees, increased 1% and represented 84% of total revenues for the quarter [12] Market Data and Key Metrics Changes - International revenues accounted for 22% of total revenues, up from 18% last year [15] - Remaining performance obligations increased by 13% year-over-year to $125 million [15] Company Strategy and Development Direction - The company is focusing on an AI-first approach to supply chain planning, with new generative AI capabilities launched in May [6] - There is a concerted effort to transition existing self-managed clients to cloud-hosted solutions, with expectations for increased cloud migrations towards the end of the fiscal year [7] - The company is maintaining its fiscal 2025 guidance for total revenue of $104 million to $108 million and recurring revenue between $87 million to $89 million [10] Management's Comments on Operating Environment and Future Outlook - Management noted that conversion of the pipeline remained low due to seasonal softness and cautious buyer behavior in an uncertain economic environment [8] - Despite economic concerns, there is confidence in meeting or exceeding guidance due to an expanding late-stage pipeline and increased client readiness to move forward with projects [9] - Management expressed optimism about the cloud migration strategy and its reception among clients, anticipating it will become a more prominent part of the delivery model [33] Other Important Information - The company has eliminated its dual-class structure to enhance corporate governance [10] - Cash and investments stood at approximately $92 million at the end of the quarter, with $3.7 million paid in dividends during the quarter [15] Q&A Session Summary Question: Can you quantify retention rates and compare them to historicals? - Retention rates are currently in the mid-90s, consistent with recent quarters [17][20] Question: Are you taking any internal actions to address slower conversions? - The company has not diverted resources but has taken steps to stimulate dialogue and facilitate client transitions to cloud solutions [19][20] Question: How actively is the company looking for M&A opportunities? - The company has adopted a more opportunistic posture due to misaligned valuations in the market [21][22] Question: Is the professional services margin sustainable? - The company is comfortable with the current services margin, viewing it as a return to normal levels [25][26] Question: How is the network optimization opportunity emerging? - The network design optimization solution is gaining traction among clients, enhancing their ability to manage supply chain decisions [28] Question: What is the competitive landscape like with new entrants? - The competitive landscape remains stable, with SAP and Microsoft as primary competitors, while new entrants have not significantly impacted the market [40][41]

Core Insights - American Software reported earnings per share (EPS) of 12 cents, exceeding the analyst estimate of 8 cents [1] - The company achieved revenue of $26.19 million, which is 3.69% higher than the analyst estimate of $25.26 million [1] Financial Performance - Earnings per share (EPS): 12 cents, above the estimate of 8 cents [1] - Revenue: $26.19 million, surpassing the estimate of $25.26 million by 3.69% [1]

Core Viewpoint - American Software reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and matching the earnings from the previous year [1] - The company achieved a revenue of $26.19 million for the quarter, surpassing the Zacks Consensus Estimate by 5.23%, although this represents a decline from $29.17 million year-over-year [1] Earnings Performance - The earnings surprise for the quarter was 71.43%, with a previous quarter surprise of 50% [1] - Over the last four quarters, American Software has exceeded consensus EPS estimates three times [1] Revenue Insights - The company has also topped consensus revenue estimates three times in the last four quarters [1] - Current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $25.76 million, and for the current fiscal year, it is $0.35 on revenues of $104.01 million [4] Industry Context - The Computer - Software industry is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5] - Adobe Systems, another company in the same industry, is expected to report quarterly earnings of $4.53 per share, reflecting a year-over-year increase of 10.8% [5][6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________ FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 22, 2024 (August 22, 2024) | --- | --- | |-------------------------------------------------------------------------------|-----------------------| | AMERICAN SOFTWARE, INC. (Exact Name of Registrant as Specified in | Charter) | | Commission File Number 0-12 ...