American Software, Inc. today reported preliminary financial results for the first quarter of fiscal 2017.
Key first quarter financial highlights:
- Total revenues for the quarter ended July 31, 2016 were $27.4 million, a decrease of 5% over the comparable period last year.
- Software license revenues for the quarter ended July 31, 2016 were $4.6 million, a decrease of 5% compared to the same period last year.
- Services and other revenues for the quarter ended July 31, 2016 decreased 12% to $12.2 million compared to $13.8 million for the same period last year.
- Maintenance revenues for the quarter ended July 31, 2016 increased 4% to $10.6 million compared to $10.1 million for the same period last year.
- Operating earnings for the quarter ended July 31, 2016 were $1.6 million compared to $3.8 million the same period last year.
- GAAP net earnings for the quarter ended July 31, 2016 decreased 34% to $1.7 million or $0.06 per fully diluted share compared to $2.6 million or $0.09 per fully diluted share for the same period last year.
- Adjusted net earnings for the quarter ended July 31, 2016, which excludes non-cash stock-based compensation expense and amortization of acquisition-related intangibles were $2.0 million or $0.07 per fully diluted share compared to $2.9 million or $0.10 per fully diluted share for the same period last year, which also excluded non-cash stock-based compensation expense and amortization of acquisition-related intangibles.
- EBITDA decreased by 42% to $3.1 million for the quarter ended July 31, 2016 compared to $5.2 million for the quarter ended July 31, 2015.
- Adjusted EBITDA decreased 39% to $3.4 million for the quarter ended July 31, 2016 compared to $5.6 million for the quarter ended July 31, 2015. Adjusted EBITDA represents GAAP net earnings adjusted for amortization of intangibles, depreciation, interest income & other, net, income tax expense and non-cash stock-based compensation expense.
- Cloud Services Annual Contract Value (ACV) increased approximately 36% to $4.0 million for the quarter ended July 31, 2016 compared to $3.0 million for the same period of the prior year. The ACV is comprised of software-as-a-service (SaaS) ACV of $2.1 million compared to approximately $1.5 million during the same period last year and other cloud services ACV of $1.9 million compared to $1.5 million during the same period last year.
The Company is including ACV, EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share in the summary financial information provided with this press release as supplemental information relating to its operating results. This financial information is not in accordance with, or an alternative for, GAAP-compliant financial information and may be different from the non-GAAP financial information used by other companies. The Company believes that this presentation of ACV, EBITDA, adjusted EBITDA, adjusted net earnings and adjusted net earnings per share provides useful information to investors regarding certain additional financial and business trends relating to its financial condition and results of operations. ACV is a forward-looking operating measure used by management to better understand cloud services (SaaS and other related cloud services) revenue trends within the Company’s business as it reflects the Company’s current estimate of revenue to be generated under the existing client contracts in the forward 12-month period.
