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Jan 31
American Software Q3 2025 Earnings Report
Logility reported its third quarter fiscal year 2025 financial results, with a decrease in total revenues and a net loss, primarily due to one-time charges related to the Starboard acquisition and Aptean transaction.
Key Takeaways
Logility Supply Chain Solutions, Inc. reported a net loss of ($2.758) million for the third quarter of fiscal year 2025, compared to a net income of $4.152 million in the prior year. Total revenues decreased by 2% to $25.007 million. The company's operating income was a loss of ($3.513) million, significantly down from a gain of $0.815 million in the same period last year, largely impacted by one-time charges.
Total revenues for the quarter decreased 2% to $25.0 million, primarily due to a decrease in services and maintenance revenue.
The company reported a net loss of ($2.758) million for the quarter, compared to a net income of $4.152 million in the prior year.
Operating income was a loss of ($3.513) million, impacted by one-time charges for Starboard acquisition-related items and the Aptean transaction.
Subscription fees increased by 5% to $14.8 million, while software license revenues saw a significant increase of 139% to $0.662 million.
American Software
American Software
American Software Revenue by Segment
Revenue by Segment
Subscription Fees Revenue
CapyFin.comSoftware License Fees Revenue
CapyFin.comProfessional Services & Other Revenue
CapyFin.comMaintenance Revenue
CapyFin.com Forward Guidance
Due to the pending transaction with Aptean, Logility will not be hosting an earnings conference call to review its results for the quarter and will not be providing a financial outlook. The transaction is expected to close in the second quarter of 2025.
Positive Outlook
- The proposed acquisition by Aptean for $14.30 per share in an all-cash transaction provides a clear exit strategy for shareholders.
- The transaction is expected to close in the second quarter of 2025, indicating a relatively near-term resolution.
- The company's overall financial condition remains strong with approximately $79.3 million in cash and investments.
- The acquisition by Aptean, a global provider of mission-critical enterprise software solutions, could lead to future synergies and expanded market reach.
- The definitive agreement provides certainty regarding the acquisition terms.
Challenges Ahead
- The company will not be hosting an earnings conference call, limiting direct communication with investors regarding future performance.
- No financial outlook will be provided, creating uncertainty about future financial performance.
- The transaction is subject to customary closing conditions, including shareholder and regulatory approvals, which could cause delays or prevent closing.
- The company's common stock price may fluctuate during the pendency of the proposed transaction and could decline significantly if the transaction is not completed.
- The company faces risks related to retaining key personnel and management due to the impact of the proposed transaction.
Revenue & Expenses
Visualization of income flow from segment revenue to net income