Question-and-Answer Session
Operator
(Operator Instructions) We'll take our first question from the side of Drake Johnstone of Davenport. Go ahead please. It looks like he withdrew his question; we can take our next question from the side of David Soetebier of Dutton Associates. Go ahead please.
David Soetebier - Dutton Associates
Good afternoon gentlemen.
Mike Edenfield
Hi, David.
David Soetebier - Dutton Associates
It looks like NGC and The Proven Methods had very good quarters: has something changed in that business versus we had couple of years they were quite down?
Mike Edenfield
While New Generation did have a strong quarter and we've got a good pipeline and off to a strong start this quarter. So, they have actually looked at the long-term trends, and they have been growing. So, they are just continuing that trend. The Proven Method did have an increase in services, which we anticipated and a large customer who had paused for a while got back on track. So, that's the main thing that drove that.
David Soetebier - J.M. Dutton Associates
And second one on Logility, maintenance revenues: are the maintenance renewals running at normal rates? Have there been any changes in that?
Mike Edenfield
Not about where it's normally been.
David Soetebier - J.M. Dutton Associates
All right. Thank you.
Operator
(Operator Instructions) Our next question comes from the side of [Jim Rainey] of UBS. Go ahead please.
Jim Rainey – UBS
Good quarter, guys, thanks. I’m recently building the position in stock and some of my retail clients ask me, and since the Logility is 80% owned by American Software: what benefits does American Software receive from having a separate kind of tracking stock? And then: how those benefits outweigh the extra expenses that must be involved with having two different corporations?
Mike Edenfield
Well, if you go back to the reasons, we structured it this way, I guess about ten years ago now, at the time Logility was growing much faster than American. And recently, although it wasn’t in this quarter, but recently it’s been doing that, particularly on the earnings line. But it was hidden, those sort of hidden assets within American. And so, it was to highlight the fact that we did have good asset that was growing quite fast in hot markets [front-end] management market. So, the expenses aren’t necessarily as large as some people think they are. We’ve been able to economize, while there are some extra expenses, but we think at this time anyway the pluses outweigh the minuses.
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