American Software (AMSWA)

General and Administrative

For the three months ended January 31, 2010, the general and administrative expenses decreased 8% due primarily to decreased audit, legal and building improvement related expenses. For the nine months ended January 31, 2010 the general and administrative expenses increased 9% primarily due to expenses related to the Logility tender offer process that was concluded in the quarter ended July 31, 2009.

At January 31, 2010, the total number of employees was 286 compared to 302 at January 31, 2009.

General and Administrative

For the year ended April 30, 2009, the increase in general and administrative expenses compared to fiscal 2008 was primarily due an increase in the provision for doubtful accounts, higher variable compensation expense and expenses related to the Logility tender offer process, partially offset by decreases in audit-related fees. For the year ended April 30, 2008, the decrease in general and administrative expenses compared to the previous fiscal year was primarily due to lower variable compensation expense, partially offset by increased audit-related fees, an increase in the provision for doubtful accounts and an increase in headcount. On April 30, 2009, the total number of employees was approximately 291, compared to approximately 315 on April 30, 2008 and 308 on April 30, 2007.

General and Administrative

For the three months ended January 31, 2009, the increases in general and administrative expenses were due to higher legal and audit expenses in the current period as well as a reversal of a bonus compensation accrual in the prior year quarter when our performance declined from earlier quarters in that fiscal year. For the nine months ended January 31, 2009, the decreases in general and administrative expenses were primarily due to lower variable compensation and overall lower headcount.

As of January 31, 2009, the total number of employees was 302 compared to 331 on January 31, 2008.

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General and Administrative

For the three and six months ended October 31, 2008, the decreases in general and administrative expenses were primarily due to lower variable compensation and salary expenses from reduced headcount

At October 31, 2008, the total number of employees was 299 compared to 330 at October 31, 2007.

General and Administrative

For the three months ended July 31, 2008, the decreases in general and administrative expenses were primarily due to lower variable bonus compensation, headcount and audit related expenses when compared to three months ended July 31, 2007.

At July 31, 2008, the total number of employees was 296 compared to 328 at July 31, 2007.

General and Administrative

For the year ended April 30, 2008, the decrease in general and administrative expenses was primarily due to lower variable compensation expense partially offset by increased audit-related fees, an increase in the provision

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Index to Financial Statements

for doubtful accounts and an increase in headcount. For the year ended April 30, 2007, the increase in general and administrative expenses was primarily due to stock-based compensation expense. On April 30, 2008, the total number of employees was approximately 315, compared to approximately 308 on April 30, 2007 and 310 on April 30, 2006.

General and Administrative

For the three and nine months ended January 31, 2008, general and administrative expenses when compared to the same period a year ago decreased primarily due to lower management bonus compensation expense in the Company’s current year financial results.

At January 31, 2008, the total number of employees was 331 compared to 300 at January 31, 2007.

General and Administrative

For the three months ended October 31, 2007, the decreases in general and administrative expenses were primarily due to timing of audit related and annual report expenses when compared to three months ended October 31, 2006. For the six months ended October 31, 2007, the increases in general and administrative expenses were primarily due to bonus compensation expenses, which increased when compared to six months ended October 31, 2006.

At October 31, 2007, the total number of employees was 330 compared to 294 at October 31, 2006.

General and Administrative

For the three months ended July 31, 2007, the increases in general and administrative expenses were primarily due to bonus compensation, audit related and annual report expenses when compared to three months ended July 31, 2006.

At July 31, 2007, the total number of employees was 328 compared to 302 at July 31, 2006.

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General and Administrative

For the three and nine months ended January 31, 2007, general and administrative expenses when compared to the same period a year ago increased due to employee stock option expense which was not included in the Company’s prior year’s financial results and increased professional services. Also, during the three and nine months ended January 31, 2007, we incurred approximately $65,000 and $176,000 of restructuring expenses related to the closure of our French operations. At January 31, 2007, the total number of employees was 300 compared to 312 at January 31, 2006.

General and Administrative

For the three and six months ended October 31, 2006, general and administrative expenses when compared to the same period a year ago were relatively flat. During the three months ended October 31, 2006, we incurred approximately $111,000 of restructuring expenses related to the closure of our French operations. We expect to incur approximately $200,000 in additional expenses during fiscal year 2007. At October 31, 2006, the total number of employees was 294 compared to 308 at October 31, 2005.

General and Administrative

For the three months ended July 31, 2006, the increases in general and administrative expenses were primarily due to expenses related to compensation expense related to stock options. During the quarter ended July 31, 2006, we adopted the fair value recognition provisions of Statement of Financial Accounting Standards No. 123(R) (“SFAS 123(R)”), “Share-Based Payments” using the modified prospective transition method. Under that transition method, compensation cost recognized on or after May 1, 2006 includes: (a) compensation cost for all share-based payments granted prior to, but not yet vested as of May 1, 2006, based on the grant date fair value estimated in accordance with the original provisions of SFAS 123, and (b) compensation cost for all share-based payments granted on or after May 1, 2006, based on the grant date fair value estimated in accordance with SFAS 123(R). We recorded stock option compensation cost of $224,913 in the quarter ended July 31, 2006 of which approximately $166,000 was recorded to general and administrative expense.

At July 31, 2006, the total number of employees was 302 compared to 300 at July 31, 2005.

General and Administrative

For the three and nine months ended January 31, 2006, the increases in general and administrative expenses were due to an accrual for performance based compensation expenses, an increase audit fees and expenses related to the DMI acquisition. At January 31, 2006 and the same period last year the total number of employees was 312.

General and Administrative

For the three and six months ended October 31, 2005, the increases in general and administrative expenses were due to an accrual for performance based compensation expenses, an increase in audit fees and expenses related to the DMI acquisition. At October 31, 2005, the total number of employees was 308, compared to 320 at October 31, 2004.

General and Administrative

For the three months ended July 31, 2005, the increases in general and administrative expenses were due to increases in employee headcount resulting from the DMI acquisition and additional expenses related to audit fees. At July 31, 2005, the total number of employees was 300, compared to 276 at July 31, 2004.

General and Administrative

For the quarter and nine months ended January 31, 2005, the increases in general and administrative expenses were due to increases in employee headcount resulting from the DMI acquisition. At January 31, 2005, the total number of employees was 312, compared to 271 at January 31, 2004.

General and Administrative

For the quarter and nine months ended January 31, 2005, the increases in general and administrative expenses were due to increases in employee headcount resulting from the DMI acquisition. At January 31, 2005, the total number of employees was 312, compared to 271 at January 31, 2004.

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