American Software sells business software from sea to shining sea. The company's supply chain management and enterprise resource planning (ERP) software is used by manufacturers and distributors to manage back-office operations, including global supply chain, warehouse, and transportation operations. Its Logility subsidiary makes collaborative applications that connect buyers with suppliers and help in planning transportation and logistics. American Software also provides IT staffing and consulting services. The company's customers come from a wide range of industries worldwide and have included The Home Depot, Avery Dennison, Tiffany, and Ingram Micro.
Historically, American Software has generated nearly all of its revenues from customers in the US but the company is working to change that. In 2014 business came from nearly 80 other countries through international distributors (14% of sales).
American Software operates through three major subsidiaries: Logility, New Generation Computing (supply chain management for retailers), and The Proven Method (IT consulting). Many of its supply chain products fall outside the subsidiary system though.
Sales and Marketing
The company's customers include A|X Armani Exchange, Aeropostale, Billabong, Carter’s, Casual Male, Hugo Boss, Jos. A. Bank, FGL Group, Athletica, Marchon Eyewear, and Swatfame. American Software spent $2.2 million, $2 million, and $1.8 million in 2014, 2013 and 2012, respectively, on sales and marketing.
American Software logged $100.6 million in revenues in f2014 compared to $100.5 million in fiscal 2013.
Its net income declined by 1% in fiscal 2014, mainly due to higher operating expenses including research and development, sales and marketing, and general and administrative.
The company’s cash flow from operating activities dropped down to $18.3 million in fiscal 2014 (from $19.1 million in fiscal 2013) due to an increase in accounts receivable (compared to a decrease in fiscal 2013) as the result of the timing of sales and billing and lower depreciation and amortization expense due to timing of closing capitalized software projects.
The company is seeking to enhance its existing products and develop new products while expanding its sales and marketing activities. It hopes to expand its international presence by creating additional distributor relationships in South America, Europe, Africa, and the Asia/Pacific region.
American Software's partners include IBM Corp. and IBM Global Services; docUnity, LLC; and New Generation Computing.
Mergers and Acquisitions
To expand its software product offerings, in 2013 American Software acquired Atlanta-based Taylor Manufacturing Systems, USA, LLC, a privately-held provider of advance planning systems software.
Co-founders James Edenfield (president and CEO) and Dr. Thomas Newberry (chairman) together control the voting power of the company.