Fri, Aug 30, 3:05 PM (137 days ago)
For the quarter ending July 31, 2024, American Software, Inc. reported total revenues of $26,192,000, reflecting a modest increase of 1% year-over-year. Subscription fees grew by 7%, driven by an increase in higher-value contracts, while maintenance revenue fell by 11%, attributed to client attrition and transitions to SaaS. Operating income improved to $1,844,000, a 33% increase from the prior year, with a gross margin of 67%, up from 65%. However, net earnings decreased by 25% to $2,054,000, influenced by lower other income and higher tax expenses. Cash flow from operations was negative at $(1,799,000), contrasting sharply with a positive $7,168,000 in the prior year, primarily due to increased trading securities purchases and deferred revenue fluctuations. The company maintained a strong liquidity position with $53,917,000 in cash and equivalents. Challenges include economic uncertainties affecting capital spending and ongoing competition in the software market. Looking ahead, American Software anticipates leveraging its technology to meet evolving client needs while navigating potential economic headwinds.