American Software Reports Fifteen Consecutive Quarters of Profitability

American Software, Inc. (www.amsoftware.com) reported its' financial results for the second quarter of fiscal year 2005, marking its' fifteenth consecutive quarter of profitability.

Total revenues for the second quarter were $14.9 million compared to $13.5 million the same quarter last year. Software license fees were $2.5 million compared to $2.9 million during the same period last year. Services and other revenues were $7.6 million for the second quarter of fiscal year 2005 compared to $6.1 million for the same period last year.

Total revenue for six months ending on October 31, 2004 were $28.6 million compared to $26.6 million for the comparable period last year. Software license fees for the six months period were $5.1 million compared to $5.6 million during the same period last year.

The overall financial condition of the Company remains strong, with cash and investments of approximately $55.0 million and zero debt as of October 31, 2004. During the quarter, the Company paid a $.07 per share quarterly dividend of approximately $1.7 million.

"We are pleased to achieve our fifteenth consecutive quarter of profitability. Despite the continued global economic uncertainty and general market conditions impacting capital expenditures in the technology sector, American Software delivered a 10% increase in revenue," stated James C. Edenfield, president and CEO of American Software.

The Demand Management acquisition is expected to be accretive to Logility's earnings and cash flow within the next 12 months, and is expected to contribute approximately $10 million in annual revenue, with 50% as a recurring component.

The acquisition provides more than 800 active customers in the growing small and midsize business (SMB) market, which brings the Logility customer base to approximately 1,100 and gives Logility what is believed to be the largest installed base of supply chain planning customers among application software vendors.