So, looking at operating expenses, our gross R expenses were 13% of total revenues for the current and prior year fiscal years. As a percentage of total revenues, sales and marketing expenses were 19% for the current year compared to 18%, and G expenses were 11% of revenues for the current year and that compares to 13% for the same period last year.

Our adjusted net income was $3.3 million or adjusted earnings per diluted share of $0.11 for the fourth quarter, and that compares to the net income of $2.9 million or adjusted earnings per diluted share of $0.10 in the same period last year. These adjusted numbers exclude amortization of intangible expenses related to acquisitions, stock based compensation expense and discrete tax adjustments in both periods.

At this time, I would like to turn the call over to Mike Edenfield, CEO of American Software.

More customers are leveraging our cloud services and SaaS offerings to accelerate their deployments and enhance their operations, and we are pleased to report a 37% increase in cloud services annual contract value, ACV, when compared to the same quarter last year.

Good day and welcome to the fourth quarter of fiscal year 2016 preliminary results. All lines are currently in a listen only mode. Later you will have the opportunity to ask questions during the question and answer session, and please note today's call is being recorded. It is now my pleasure to turn the conference over to Vincent Klinges, Chief Financial Officer of American Software.

Good afternoon and welcome to American Software's fourth quarter 2016 earnings conference call. To begin, I would like to remind you that this conference call may contain forward looking statements, including statements regarding, among other things, our business strategy and growth strategy. Any such forward looking statements speak only as of this date.

International revenues this quarter were approximately 14% of revenues, and that compares to 15% in the same period last year.

So, our operating income for fiscal 2016 increased 45% to $13.5 million compared to $9.3 million, and adjusted EBITDA for 2016 was $20.7 million compared to $16.7 million for the same period last year, and GAAP income increased 26% to $10.2 million or $0.35 earnings per diluted share and that compares to a net income of $8.1 million or $0.28 earnings per diluted share last year.

At this time, I would like to look at the full year. The total revenues year to date increased 11% to $114 million, compared to $102.9 million last year. License fees increased 32% to $22 million compared to $16.7 million. Services revenues also increased 8% to $51.1 million compared to $47.2 million. And also our maintenance revenues increased 5% to $40.7 million compared to $38.9 million.

On an adjusted net income basis, our fiscal 2016 was $10.5 million or earnings per diluted share of $0.36, and that compares to a net income of $8.2 million or earnings per diluted share of $0.29 for the same period last year. International revenues for fiscal 2016 were 17% of revenues, and that compares to 16% for the same period last year.

The Company's financial position remained strong with cash and investments of approximately $77.9 million at the end of April 30, 2016, and this is an increase of $2.5 million when compared to April 30, 2015. During the year, the Company paid approximately $11.5 million in dividends to shareholders.

At the end of the quarter, we increased our cloud services ACV, which include SaaS and managed services revenue, 37% to $3.8 million compared to $2.8 million in the same period last year. Our maintenance revenues also increased 5% to $10.3 million compared to $9.8 million, primarily Baby Canada Goose Snow Bunting Spirit Nz due to additional license fees.

During the quarter, software agreements were signed with customers in the following nine countries; Australia, Canada, Finland, Japan, Mexico, Sweden, Switzerland, the United Kingdom, and the United States.

Looking at gross margins for the full year, the overall gross margin was 52%, and that compares to 51%. The license fee margin increased to 65% from 54% last year due to increased license fees. Services margin was 27% for the current year, and that compares to 28% last year. And our maintenance margin was 77% for the current year, compared to 78% in the prior year period.

Logility announced Shelley Kiley, the Vice President of Global Supply Chain and Global Distribution and Logistics at Moen, North America's 1 faucet brand, was named as Supply Demand Chain Executive 2016 Pros to Know. Ms. Kiley was selected from more than 350 nominations submitted for the 16th annual listing and is recognized for helping Moen improve its supply chain planning capabilities, ensure product availability and service commitments, and improve working capital efficiency through the use of Logility Voyager Solutions.

´╗┐AMSWA CEO Michael Edenfield on Q4 2016 Results

Taking a look at costs, our overall gross margin increased to 55% for the current quarter compared to 51% in the prior year quarter. Our license fee margin increased to 71% for the current quarter compared to 57% in the same period last year, and that's primarily due to license fee increases. Services margin was 29% for both the current and prior year quarter. Our maintenance margin was 75% for the current quarter and that compares to 77% in the prior year quarter.

So we had a great quarter, but I'll turn it over to Vince for the details.

There are a number of factors that could cause actual results to differ materially from those anticipated by statements made on this call. Such factors include, but are not limited to, changes and uncertainty in general economic conditions, the growth rate of the market for our products and services, the timely availability and market acceptance of these products and services, the effect of competitive products and pricing and other competitive pressures, and the irregular and unpredictable pattern of revenues. In light of these risks and uncertainties, there can be no assurance that the forward looking information will prove to be accurate.

Baby Canada Goose Snow Bunting Spirit Nz

During fiscal year 2016, we increased license fee revenue by 32% and total revenues by 11%, which increased operating earnings by 45% compared to the prior year. During fiscal year 2016, we welcomed 54 new customers, signed agreements with customers in 16 countries and continued our aggressive investment in research and development and continued to expand our global presence. Cosmetics, Jenny Yoo Collections, Le Creuset, Mount Franklin Foods, Outdoor Voices and Zevia.

Looking at operating expenses, our gross R expenses were 13% of total revenues for both the current and prior year quarter. As a percentage of revenue, sales and marketing expenses were 21% of revenues for the current quarter, and that compares to 18% from the prior year, due to increased headcount and commissions from higher license fees.

G expenses were 9% of total revenues for the current period, and that compares to 12% from the prior year. This is lower due to a state employer tax withholding credit of $613,000 which related to the current quarter. This is a partial catch up from prior years. We expect this credit to be approximately $400,000 annually going forward.

Thank you, Mike. Comparing the fourth quarter of 2016 to the same period last year, as Mike indicated, in the quarter we increased revenues 5% to $28.9 million compared to $27.6 million, and this is primarily increased due to license fees which increased 30% to $6.6 million compared to $5 million for the same period last year.

Thanks, Vince, and thanks to all of you for participating in today's call. We had a great quarter with license fee revenues increasing 30% and total revenues by 5%, which increased operating earnings by 13% compared to the same period of the prior year. Also our maintenance revenues increased 5% in the quarter while our maintenance retention rates continued to be strong at approximately 94% to 95%.

During the quarter, Demand Management was selected by industry publication, Inbound Logistics, as a Top 100 IT Provider for 2016. This is the 19th consecutive year for Logility and the sixth year for Demand Management to be recognized by Inbound Logistics for helping companies solve their complex supply chain challenges and fast changing transportation needs.

NGC also announced a win with Canada Goose Inc., a rapidly growing manufacturer of luxury apparel, implementing NGC's Extended PLM, which combines fashion PLM and Supply Chain Management into a fully integrated end to end solution.

Our services and other revenues decreased 6% to $12 million for the current quarter compared to the same period last year, and that's due to a decrease in our IT staffing business, The Proven Method, as a result of a project ending. Offsetting this decline was Logility, which increased services 19% due to increased implementation project work, from increased license fees in recent quarters and also an increase in cloud services. Also, our ERP business unit increased services revenue by 15%. So, the overall services revenue would have increased by 18% if you exclude the IT consulting business decline.

Operating income increased 13% to $3.9 million for the quarter compared to $3.4 million in the same period last year a year ago. Adjusted EBITDA, which excludes stock based compensation, increased 6% to $5.6 million, and that compares to $5.3 million in the same period last year. So, our GAAP net income increased 32% to $3.4 million or earnings per diluted share of $0.12, compared to net income of $2.6 million or $0.09 earnings per diluted share in the same period last year.

These forward looking statements are based largely on our expectations and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth and contemplated by or underlying the forward looking statements.