ATLANTA - American Software , Inc. (NASDAQ: NASDAQ:AMSWA), a provider of AI-first supply chain management software, has announced the declaration of a quarterly dividend of $.11 per share. This dividend will be available to Class A shareholders who are recorded by November 15, 2024, and the payment is scheduled for November 29, 2024.
The Atlanta-based company, through its subsidiary Logility, offers a suite of tools designed to optimize demand, inventory, manufacturing, and supply planning. Logility's AI-driven approach aims to shift traditional supply chain planning to predictive strategies that leverage both human and machine intelligence. The integrated platform provided by Logility is intended to help businesses respond swiftly to market changes, transforming supply chains into growth engines.
American Software boasts a client base of over 550 companies across 80 countries, including notable brands such as Reynolds Consumer Products (NASDAQ:REYN), Denso, Sandvik, and Ansell. The company emphasizes its commitment to developing sustainable digital supply chains that have a positive impact on society and the environment.
While the press release includes forward-looking statements, it is important to note that these are subject to risks and uncertainties that could affect the company's actual results or performance. Factors that may influence outcomes include economic conditions, market acceptance of products and services, competitive pressures, and technological complexities, among others.
Investors should consider that the company's performance could vary from these projections due to various risk factors detailed in American Software's filings with the Securities and Exchange Commission (SEC), including its Form 10-K.
This dividend announcement is based on a press release statement from American Software, Inc. and serves as an update to shareholders and the market regarding the company's financial distributions.
In other recent news, American Software has made headlines with significant developments. B.Riley maintained a Buy rating on American Software, despite reducing its price target from $16 to $14. The firm's analysis anticipates the company's Q1 2025 results, projecting revenues and adjusted EBITDA to fall slightly below consensus. The company's focus on driving recurring revenue growth, which accounts for over 85% of total revenue in its core supply chain planning business, is noted as a continued strategy by management.
American Software has announced a strategic shift towards its core supply chain software, planning to rebrand as Logility. This move was marked by the acquisition of Garvis and the launch of DemandAI+, significant steps in American Software's AI strategy. For fiscal year 2025, the company projects total revenue between $104 million and $108 million, and adjusted EBITDA ranging from $15 million to $16.4 million.
B.Riley also highlights American Software's strong financial position, citing nearly $84 million in cash reserves and a lack of debt. The company's efforts to increase conversion activity and expand artificial intelligence capabilities on its Logility platform are seen as potential drivers for organic revenue growth and adjusted EBITDA margin expansion in the second half of 2025 and the 2026 fiscal year. These are the latest developments in American Software's strategic efforts to grow in the evolving industry.
InvestingPro Insights
As American Software, Inc. (NASDAQ: AMSWA) continues to innovate in the AI-driven supply chain management space, there are several financial metrics and expert analyses from InvestingPro that could provide investors with a deeper understanding of the company's current standing.
AMSWA's market capitalization currently stands at approximately $343.12 million, reflecting the market's valuation of the company. Despite recent market volatility, American Software has upheld its commitment to shareholder returns, maintaining a consistent dividend payout for 22 consecutive years. This is underscored by a noteworthy dividend yield of 4.37% as of the last recorded date, signaling a tangible return on investment for shareholders.
InvestingPro data highlights a Price/Earnings (P/E) ratio of 30.44, which suggests that the market has high expectations for the company's earnings potential. However, it is also trading at a high P/E ratio relative to its near-term earnings growth, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 47.37. This could indicate that the stock is priced optimistically compared to its earnings trajectory.
An InvestingPro Tip worth noting is that American Software holds more cash than debt on its balance sheet, providing it with a solid financial foundation to navigate market shifts and invest in further product innovation. Additionally, the company's liquid assets exceed short-term obligations, ensuring financial flexibility in the near term.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. There are currently 10 more InvestingPro Tips available for American Software, Inc., which can be accessed by visiting the InvestingPro platform. These tips could provide valuable context for evaluating the company's future prospects and investment potential.
With an upcoming earnings date on August 22, 2024, stakeholders and potential investors will be keenly observing American Software's performance metrics and strategic initiatives as they unfold.
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