American Software (AMSWA)

Sales and Marketing

For the three and nine months ended January 31, 2010, sales and marketing expenses decreased 5% and increased 1%, respectively, when compared to the same periods a year ago. These changes were due primarily to the decrease in direct sales commissions as a result of decreased license fee sales by our direct channel and lower marketing-related costs. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

We market our products through direct and indirect sales channels. We conduct our principal sales and marketing activities from corporate headquarters in Atlanta, Georgia, and have sales and/or support offices in Boston, Chicago, Dallas, and Pittsburgh. We manage sales channels outside of North America from our international offices, primarily in the United Kingdom.

In addition to our employee sales force, we have developed a network of agents who assist in selling our products globally. We intend to utilize these and future relationships with software and service organizations to enhance our sales and marketing position. These independent distributors and resellers, located in North America, South America, Mexico, Europe and the Asia/Pacific region, distribute our product lines domestically and in foreign countries. These vendors typically sell their own consulting and systems integration services in conjunction with licensing our products. Our global distribution channel consists of approximately 35 organizations with sales, implementation and support resources serving customers in more than 70 countries.

We support our sales activities by conducting a variety of marketing programs including public relations, direct marketing, advertising, trade shows, product seminars, industry speakers, user group conferences and ongoing customer communication and industry analysts programs. We also participate in industry conferences such as those organized by the Association for Operations Management (APICS), the Council of Supply Chain Management Professionals (CSMCP), formerly called the Council of Logistics Management (CLM), and the Institute for Supply Management (ISM).

We also engage in third party software alliance programs with other software vendors. These programs generally provide some type of assistance for developing or marketing software products which are compatible or complimentary with products of the other party. Under one such program, DMI was designated a Microsoft Gold Certified Partner to provide integrated supply chain products for Microsoft’s Dynamics GP and NAV solutions.

Sales and Marketing

In the year ended April 30, 2009, the decrease in sales and marketing expenses compared to fiscal 2008 was due primarily to the cost containment efforts at our Logility UK office, lower marketing expenses and to a lesser extent due to lower sales commissions at our ERP segment from lower license fees.

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In the year ended April 30, 2008, the increase in sales and marketing expenses compared to the previous fiscal year was due primarily to the increased cost in our IT Consulting and Logility segments from higher headcount and increased marketing-related expenses. Commissions on indirect sales are generally recorded to cost of sales.

Sales and Marketing

For the three and nine months ended January 31, 2009, sales and marketing expenses decreased 6% and 2%, respectively, when compared to the same periods a year ago due primarily to lower headcount and marketing expenditures. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

For the three months ended October 31, 2008, sales and marketing expenses decreased 9% and increased 1% for the six months ended October 31, 2008 when compared to the same periods a year ago. These changes were due primarily to the timing of direct sales commissions as a result of license fee sales. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

For the three months ended July 31, 2008, the increase in sales and marketing expenses when compared to the same period a year ago was due primarily to the increased cost from higher headcount. This was partially offset by a decrease in direct sales commissions. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

In the year ended April 30, 2008, the increase in sales and marketing expenses was due primarily to the increased cost in our IT Consulting and Logility business units from higher headcount and increased marketing-related expenses. Commissions on indirect sales are generally recorded to cost of sales.

In the year ended April 30, 2007, the increase in sales and marketing expenses was due primarily to the increase in sales of our ERP and IT Consulting business units which resulted in an increase in sales commission expense. This was partially offset by a decrease in sales and marketing expense at Logility as a result of lower license fees sales from the direct channel resulted in lower sales commissions.

Sales and Marketing

In the year ended April 30, 2008, the increase in sales and marketing expenses was due primarily to the increased cost in our IT Consulting and
Logility business units from higher headcount and increased marketing-related expenses. Commissions on indirect sales are generally recorded to cost of sales.

FACE="Times New Roman" SIZE="2">In the year ended April 30, 2007, the increase in sales and marketing expenses was due primarily to the increase in sales of our ERP and IT Consulting business units which resulted in an increase in sales
commission expense. This was partially offset by a decrease in sales and marketing expense at Logility as a result of lower license fees sales from the direct channel resulted in lower sales commissions.

Sales and Marketing

For the three and nine months ended January 31, 2008, sales and marketing expenses increased when compared to the same period a year ago due to increased headcount and marketing related expenses that we partially offset with a decrease in commission expense as a result of lower license fee sales through our direct channel. We generally include commissions on indirect sales in cost of sales.

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Sales and Marketing

For the three and six months ended October 31, 2007, the 8% and 2% increases in sales and marketing expenses when compared to the same periods a year ago were due primarily to a increase in direct sales commissions as a result of increased license fee sales as well as additional sales and marketing headcount and marketing expenses. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

For the three months ended July 31, 2007, the decrease in sales and marketing expenses when compared to the same period a year ago was due primarily to a decrease in direct sales commissions. This was partially offset by increased marketing expenses. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

We market our products through direct and indirect sales channels. We conduct our principal sales and marketing activities from corporate headquarters in Atlanta, Georgia, and have sales and/or support offices in Boston, Chicago, Dallas, and Pittsburgh. We manage sales channels outside of North America from our international offices in the United Kingdom and Spain.

Logility has a number of marketing alliances, including those with IBM and SAP. Generally, these marketing alliance agreements provide the vendors with non-exclusive rights to market our products and access to our marketing materials and product training. Some highlights of these agreements are as follows:

In addition to these marketing alliances, Logility has developed a network of agents who assist in selling our products globally. Logility intends to utilize these and future relationships with software and service organizations to enhance our sales and marketing position. These independent distributors and resellers, located in North America, South America, Mexico, Europe and the Asia/Pacific region, distribute our product lines in foreign countries. These vendors typically sell their own consulting and systems integration services in conjunction with licensing our products.

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We support our sales activities by conducting a variety of marketing programs including public relations, direct marketing, advertising, trade shows, product seminars, industry speakers, user group conferences and ongoing customer communication and industry analysts programs. We also participate in industry conferences such as those organized by the American Production and Inventory Control Specialists (APICS) and the Council of Supply Chain Management Professionals (CSMCP), formerly called the Council of Logistics Management (CLM).

Sales and Marketing

For the three months ended January 31, 2007, sales and marketing expenses when compared to the same period a year ago decreased slightly due to increased license fee sales through our indirect channel. For the nine months ended January 31, 2007, sales and marketing expenses increased slightly compared to the same period a year ago due increase sales commission from increase license fee sales. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

For the three months ended October 31, 2006, sales and marketing expenses when compared to the same period a year ago were relatively flat. For the six months ended October 31, 2006, sales and marketing expenses increased slightly compared to the same period a year ago due increase sales commission from increase license fee sales. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

For the three months ended July 31, 2006, the increase in sales and marketing expenses when compared to the same period a year ago was due primarily to an increase in sales commissions as a result of higher license fee sales when compared to the same period last year. In addition, marketing expenses increased from the DMI acquisition. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

We market our products through direct and indirect sales channels. We conduct our principal sales and marketing activities from corporate headquarters in Atlanta, Georgia, and have sales and/or support offices in Boston, Chicago, Dallas, and Pittsburgh. We manage sales channels outside of North America from our international offices in the United Kingdom and Spain.

Logility has a number of marketing alliances, including those with IBM, SAP and SSA Global Technologies (“SSA”). Generally, these marketing alliance agreements provide the vendors with non-exclusive rights to market our products and access to our marketing materials and product training. Some highlights of these agreements are as follows:

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In addition to these marketing alliances, Logility has developed a network of international agents who assist in selling our products outside the United States. We intend to utilize these and future relationships with software and service organizations to enhance our sales and marketing position. These independent distributors and resellers, located in Canada, South America, Europe and the Asia/Pacific region, distribute our product lines in foreign countries. These vendors typically sell their own consulting and systems integration services in conjunction with licensing our products. With the acquisition of Demand Management, Logility gained access to a global distribution channel consisting of 23 organizations with sales, implementation and support resources serving customers in 70 countries.

We support our sales activities by conducting a variety of marketing programs including public relations, direct marketing, advertising, trade shows, product seminars, industry speakers, user group conferences and ongoing customer communication and industry analysts programs. We also participate in industry conferences such as those organized by the American Production and Inventory Control Specialists (APICS) and the Council of Supply Chain Management Professionals (CSMCP), formerly called the Council of Logistics Management (CLM).

Sales and Marketing

For the three and nine months ended January 31, 2006, the increase in sales and marketing expenses when compared to the same period a year ago was due primarily to an increase in sales commissions as a result of higher license fee sales when compared to the same period last year. In addition, marketing expenses increased from the DMI acquisition. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

For the three and six months ended October 31, 2005, the increase in sales and marketing expenses when compared to the same period a year ago was due primarily to an increase in sales commissions as a result of higher license fee sales when compared to the same period last year. In addition, marketing expenses increased from the DMI acquisition. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

For the three months ended July 31, 2005, the increase in sales and marketing expenses when compared to the same period a year ago was due primarily to the increase in sales and marketing expenses resulting from the DMI acquisition during the year partially offset by lower expenses in the remaining product lines due to lower sales commissions and marketing expenses. We generally include commissions on indirect sales in cost of sales.

Sales and Marketing

We market our products through direct and indirect sales channels. We conduct our principal sales and marketing activities from corporate headquarters in Atlanta, Georgia, and have sales and/or support offices in Boston, Chicago, Dallas, and Pittsburgh. We manage sales channels outside of North America from our international offices in the United Kingdom and Spain.

Logility has a number of marketing alliances, including those with IBM and SSA Global Technologies (“SSA”). Generally, these marketing alliance agreements provide the vendors with non-exclusive rights to market our products and access to our marketing materials and product training. Some highlights of these agreements are as follows:

In addition to these marketing alliances, we have developed a network of international agents who assist in selling our products outside the United States. We intend to utilize these and future relationships with software and service organizations to enhance our sales and marketing position. These independent distributors and resellers, located in Canada, South America, Europe and the Asia/Pacific region, distribute our product lines in foreign countries. These vendors typically sell their own consulting and systems integration services in conjunction with licensing our products. With the acquisition of Demand Management, Logility gained access to a global distribution channel consisting of 23 organizations with sales, implementation and support resources serving customers in 68 countries.

We support our sales activities by conducting a variety of marketing programs including public relations, direct marketing, advertising, trade shows, product seminars, industry speakers, user group conferences and ongoing customer communication and industry analysts programs. We also participate in industry conferences such as those organized by the American Production and Inventory Control Specialists (APICS) and the Council of Supply Chain Management Professionals (CSMCP), formerly called the Council of Logistics Management (CLM).

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Sales and Marketing

For the quarter and nine months ended January 31, 2005, the increase in sales and marketing expenses when compared to the same period a year ago was due primarily to increased marketing expenditures related to the DMI acquisition. Expenditures were made in the areas of advertising and trade shows.

Sales and Marketing

For the quarter and nine months ended January 31, 2005, the increase in sales and marketing expenses when compared to the same period a year ago was due primarily to increased marketing expenditures related to the DMI acquisition. Expenditures were made in the areas of advertising and trade shows.