American Software sells business software from sea to shining sea. The company's cloud-based andn on-premise 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.
The company operates in three business segments: Supply Chain Management (SCM), Enterprise Resource Planning (ERP), and Information Technology (IT) Consulting.
The SCM segment, 64% of sales, consists of Logility Inc. and Demand Management Inc., which provides collaborative supply chain solutions. The IT Consulting segment, 25% of sales, consists of The Proven Method Inc., an IT staffing and consulting services firm. The ERP segment, 11% of sales, consists of American Software ERP, which provides software fir purchasing and materials management, order processing, financial, e-commerce and manufacturing, and New Generation Computing, which provides industry-specific supply chiarn software.
Historically, American Software has generated nearly all of its revenues from customers in the US but the company is working to change that. In 2015 business came from nearly 80 other countries through international distributors (16% of sales).
Sales and Marketing
American Software reaches customers in various industries through its subsidiaries. New Generation Computing's customer list include A|X Armani Exchange, Aeropostale, Billabong, Casual Male, Hugo Boss, FGL Group, and Swatfame. Logility counts as customers Sandvik, Big Lots, Parker Hannifin, Verizon Wireless, and V.F. Corporation. Demand Management's customer roster includes AutomationDirect.com, Campbell Hausfeld, and Lonely Planet.
American Software's revenue has been stuck at around $100 million for four years. In 2015 (ended April) its revenue was $102 million, up 2.2% from 2014. The SCM business increased 16% in 2015 from Logility Cloud Services. Better renewal rates drove maintenance revenue higher. License fees, however, fell 16% for the year.
The company's net income tumbled 21% in 2015 to $8.1 million because of higher expenses. It also recorded a $169,000 investment loss.
Cash flow from operations dropped to $10 million in 2015 from $18 million in 2014 on the lower profit and cash used to buy securities.
American Software 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.
In 2015 the company added VARs to the DMI channel in countries such as Tunisia and Serbia. It also began an e-business initiative to on current applications while moving toward total Internet-based value chain management.
American Software is developing cloud-based services that include software as a service (SaaS), optimization services, and flexible hosting alternatives. It seeks to meet the rising demand for such offerings. The company is realizing a growing revenue stream from cloud services.
American Software's partners include IBM Corp. and IBM Global Services; docUnity, LLC; and New Generation Computing.
Mergers and Acquisitions
In 2015, the Logility subsidiary acquired MID Retail Inc., an Indianapolis-based provider of retail allocation and merchandise planning solutions. The acquisition is to furnish the unit with a comprehensive supply chain solution.
Co-founders James Edenfield (president and CEO) and Dr. Thomas Newberry (chairman) together control the voting power of the company.