Dutton Associates Announces Investment Opinion: American Software Strong Buy Rating In Update Coverage By Dutton Associates

Business Wire, Jan 14, 2008

EL DORADO HILLS, Calif. -- Dutton Associates continues its coverage of American Software (Nasdaq: AMSWA) maintaining a Strong Buy rating and a $10.50 price target. The 19-page report by Dutton senior analyst David P. Soetebier, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

American Software Inc. is a leading supplier of enterprise management software and services. Through 88% owned Logility (Nasdaq: LGTY) the Company is a leader in Supply Chain Management (SCM) software. We are updating our coverage of the Company with a Strong Buy rating and a 12-month target of $10.50 per share. A key strength is the Company's strong market share position in the growing demand for SCM software. We expect the demand for SCM software to become even more important as major companies increasingly outsource production driving the need to optimally manage their supply chains as the long supply line amplifies mistakes. In addition to its internal strengths, the Company's strong balance sheet allows it to take advantage of growth opportunities either internally or through acquisitions. Financial progress made in recent years has been partially hidden by accounting adjustments made for the Demand Management Inc. (DMI) acquisition, other nonrecurring charges at Logility, and higher tax rates at the Company and Logility. Fiscal 2008 is our first "normal" year, during which earnings track or exceed revenue growth. Because of the past confusion in the reported results, we don't believe American Software's stock price has fairly reflected the growth potential of the Company. In addition to providing investors with longer-term growth potential, the Company currently pays a cash dividend of $0.09 per share per quarter.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $74,000 from the Company for 10 Research Reports with coverage commencing on 1/03/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.