American Software(AMSWA)2024-12-06 16:03Revenue Recognition and Performance Obligations - The company recognized 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 47.6 million at April 30, 2024[46]. Financial Performance - The company reported domestic revenues of 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 5.6 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 25,690 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 51,591 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 24,828,000 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 (1,986,000) for Class A and 4,838,000 for Class A and 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 260,000[61]. - Total distributed earnings for Class A common shares for the three months ended October 31, 2023, was 201,000[65]. Acquisitions and Disposals - The company disposed of its 100% equity interest in The Proven Method for approximately 25.0 million, with 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 39.631 million[92]. - Cash and cash equivalents decreased to 62,971 thousand as of October 31, 2023[186]. - Net cash used in operating activities of continuing operations was 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].