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American Software (NASDAQ:AMSWA) makes software used by manufacturers and distributors to manage back-office operations. Its software manages supply chain (materials coming from suppliers), purchasing, warehouse and transportation (outbound) activities. American also offers IT staffing and consulting services.

American just reported (8/31/11) June quarter earnings (adjusted) of $0.10 per share, up 56% vs. the quarter a year ago. Total revenues rose 24% to $23.7 million. Software license fee revenues grew 139% vs. year-ago to $9.27 million. Service revenues were even with year-ago at $9.27 million, and maintenance revenues rose 10% to $7.75 million. The gross margin was 55.6% of sales vs. year-ago 53.4%. The operating margin was 15.2% of sales vs. year-ago 10.6%. At June 30, American had cash and investments totaling $42.5 million ($1.59/share) and no long-term debt.

American has been paying a $0.09 quarterly dividend, which equates to a 4.6% yield, since November 2007. Given its recent results, a dividend hike is likely.

On the downside, with only a $210 million market-cap, American falls into the micro-cap category, which is inherently riskier than larger stocks.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: A Fast Growing Software Producer That Is Paying A 4.6% Yield