American Software, Inc. Class A Stock

Revenue is the sum of all sales generated by a company, e.g. for its products or services.

Direct costs are the costs incurred directly in connection with the manufacture of the product or service.

Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.

Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.

Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.

Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).

EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.

Net Profit represents the profit or loss after deduction of all costs.