American Software Inc. (AMSWA, Financial) filed Annual Report for the period ended 2012-04-30.
American Software, Inc. has a market cap of $228.9 million; its shares were traded at around $8.42 with a P/E ratio of 19.9 and P/S ratio of 2.2. The dividend yield of American Software, Inc. stocks is 4.2%. American Software, Inc. had an annual average earning growth of 2.8% over the past 10 years.
For the year ended April 30, 2012, our margins after commissions on direct sales were approximately 81%, and our margins after commissions on indirect sales were approximately 48%. For the year ended April 30, 2011, our margins after commissions on direct sales were approximately 83%, and our margins after commissions on indirect sales were approximately 50%. For the year ended April 30, 2010, our margins after commissions on direct sales were approximately 82%, and our margins after commissions on indirect sales were approximately 44%. The margins after commissions on direct sales were relatively consistent in a range between 81% and 83% which vary based on the mix of direct sales force quota achievements. The indirect channel margins for the year ended April 30, 2012 decreased when compared to the year ended April 30, 2011 because of some additional selling commission incentives given during the current year. The indirect channel margins for the year ended April 30, 2011 increased when compared to the year ended April 30, 2010 because temporary commission draws that had been given to several new value-added resellers (VARs) for several months in the prior year, to assist in the selling process, were terminated in fiscal 2011. DMI is the source of the bulk of our indirect sales. License fee gross margin percentage tends to be directly related to the level of license fee revenues due to the relatively fixed cost of computer software amortization expense, amortization of acquired software and the sales mix between our direct and indirect channel.
For the year ended April 30, 2012, our gross margin percentage on services and other revenues increased 1%, primarily due to higher gross margins at our IT Consulting segment, The Proven Method, Inc. (TPM), as its services gross margin increased to 18% in fiscal 2012 compared to 16% in fiscal 2011, as a result of improved contracted utilization and hourly billing rates. Our ERP segments services gross margin decreased to 33% in fiscal 2012 compared to 40% in fiscal 2011 as a result of lower services revenue from the loss of a large ERP customer noted above in the services revenue area. In our SCM segment, Logilitys gross margin decreased slightly to 43% in fiscal 2012 compared to 44% in fiscal 2011 due to additional headcount.
For the year ended April 30, 2011, the gross margin percentage on services and other revenue decreased 3%, when compared to fiscal 2010. Services revenue in our lower margin IT Consulting segment, The Proven Method, Inc (TPM), increased to 61% of service revenue in fiscal 2011 compared to 55% in fiscal 2010, causing this segment to represent a larger proportion of our services and other revenues for this period when compared to the prior year. When TPM represents a larger proportion of services and other revenues, there tends to be a decline in gross margin in the segment as a whole. Its services gross margin decreased to 16% in fiscal 2011 compared to 18% in fiscal 2010, as a result of lower hourly billing rates based on the business mix. Our ERP segments services gross margin decreased to 40% in fiscal 2011 compared to 47% in fiscal 2010 as a result of lower services revenue from the loss of a large ERP customer as noted above in the services revenue area. The impact of this was partially offset by higher services margins at our SCM business unit as a result of higher services revenue. In our SCM segment, Logilitys gross margin increased to 44% in fiscal 2011 compared to 40% in fiscal 2010 due to higher services revenue and staff utilization rates. Services and other gross margin normally are directly related to the level of services and other revenues. The primary component of cost of services and other revenues is services staffing, which is relatively inelastic in the short term.
services revenues from our IT Consulting segment tends to cause our overall services gross margin percentage to decrease. The IT Consulting segment was 60%, 61% and 55% of the Companys services revenues in fiscal 2012, 2011 and 2010, respectively. Our ERP segment was 14%, 18% and 27% of the Companys services revenues in fiscal 2012, 2011 and 2010, respectively. Our SCM segment was 26%, 21% and 18% of the Companys services revenues in fiscal 2012, 2011 and 2010, respectively.
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American Software, Inc. has a market cap of $228.9 million; its shares were traded at around $8.42 with a P/E ratio of 19.9 and P/S ratio of 2.2. The dividend yield of American Software, Inc. stocks is 4.2%. American Software, Inc. had an annual average earning growth of 2.8% over the past 10 years.
Highlight of Business Operations:
Our SCM segment experienced increased revenues during fiscal 2011 when compared to fiscal 2010, due primarily to a 28% increase in license fees, a 35% increase in services and other revenues and a 10% increase in maintenance revenues from Logility customers. We believe this increase was a result of a moderate improvement in overall economic conditions, which resulted in increased capital spending in technology. The ERP segment revenues decreased 14% in fiscal 2011 when compared to fiscal 2010, primarily due to a large ERP customer that, commencing in September 2010, did not renew a services agreement that had been in place for more than ten years. This decrease was partially offset by a 4% increase in license fee sales in fiscal 2011 compared to fiscal 2010 due to an improvement in our NGC unit sales to the apparel industry. The ERP segment services and maintenance revenues decreased 23% and 7%, respectively.For the year ended April 30, 2012, our margins after commissions on direct sales were approximately 81%, and our margins after commissions on indirect sales were approximately 48%. For the year ended April 30, 2011, our margins after commissions on direct sales were approximately 83%, and our margins after commissions on indirect sales were approximately 50%. For the year ended April 30, 2010, our margins after commissions on direct sales were approximately 82%, and our margins after commissions on indirect sales were approximately 44%. The margins after commissions on direct sales were relatively consistent in a range between 81% and 83% which vary based on the mix of direct sales force quota achievements. The indirect channel margins for the year ended April 30, 2012 decreased when compared to the year ended April 30, 2011 because of some additional selling commission incentives given during the current year. The indirect channel margins for the year ended April 30, 2011 increased when compared to the year ended April 30, 2010 because temporary commission draws that had been given to several new value-added resellers (VARs) for several months in the prior year, to assist in the selling process, were terminated in fiscal 2011. DMI is the source of the bulk of our indirect sales. License fee gross margin percentage tends to be directly related to the level of license fee revenues due to the relatively fixed cost of computer software amortization expense, amortization of acquired software and the sales mix between our direct and indirect channel.
For the year ended April 30, 2012, our gross margin percentage on services and other revenues increased 1%, primarily due to higher gross margins at our IT Consulting segment, The Proven Method, Inc. (TPM), as its services gross margin increased to 18% in fiscal 2012 compared to 16% in fiscal 2011, as a result of improved contracted utilization and hourly billing rates. Our ERP segments services gross margin decreased to 33% in fiscal 2012 compared to 40% in fiscal 2011 as a result of lower services revenue from the loss of a large ERP customer noted above in the services revenue area. In our SCM segment, Logilitys gross margin decreased slightly to 43% in fiscal 2012 compared to 44% in fiscal 2011 due to additional headcount.
For the year ended April 30, 2011, the gross margin percentage on services and other revenue decreased 3%, when compared to fiscal 2010. Services revenue in our lower margin IT Consulting segment, The Proven Method, Inc (TPM), increased to 61% of service revenue in fiscal 2011 compared to 55% in fiscal 2010, causing this segment to represent a larger proportion of our services and other revenues for this period when compared to the prior year. When TPM represents a larger proportion of services and other revenues, there tends to be a decline in gross margin in the segment as a whole. Its services gross margin decreased to 16% in fiscal 2011 compared to 18% in fiscal 2010, as a result of lower hourly billing rates based on the business mix. Our ERP segments services gross margin decreased to 40% in fiscal 2011 compared to 47% in fiscal 2010 as a result of lower services revenue from the loss of a large ERP customer as noted above in the services revenue area. The impact of this was partially offset by higher services margins at our SCM business unit as a result of higher services revenue. In our SCM segment, Logilitys gross margin increased to 44% in fiscal 2011 compared to 40% in fiscal 2010 due to higher services revenue and staff utilization rates. Services and other gross margin normally are directly related to the level of services and other revenues. The primary component of cost of services and other revenues is services staffing, which is relatively inelastic in the short term.
services revenues from our IT Consulting segment tends to cause our overall services gross margin percentage to decrease. The IT Consulting segment was 60%, 61% and 55% of the Companys services revenues in fiscal 2012, 2011 and 2010, respectively. Our ERP segment was 14%, 18% and 27% of the Companys services revenues in fiscal 2012, 2011 and 2010, respectively. Our SCM segment was 26%, 21% and 18% of the Companys services revenues in fiscal 2012, 2011 and 2010, respectively.
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