Advent Software Reports First Quarter Results
San Francisco, CA, April 16, 2002 - Advent Software, Inc. (Nasdaq: ADVS) today announced that revenue for the first quarter ended March 31, 2002 was $49.2 million, up 34% from $36.7 million in the same quarter of last year. Net income for the quarter was $7.3 million or 20 cents per diluted share under Generally Accepted Accounting Principals (GAAP). First Call estimates of 22 cents for the quarter are not reported under GAAP but reflect earnings excluding the after-tax amortization of intangibles related to prior acquisitions. For comparative purposes, results for the quarter excluding the after-tax impact of amortization of intangibles of $1.9 million were 23 cents per share.
“During the first quarter of 2002, Advent continued to develop alliances with other financial industry leaders, to add functionality into our existing solutions and to attract investment firms of all types and sizes who see the benefits of our software, data and services solutions,” said Peter Caswell, President and Chief Executive Officer of Advent Software. “We are also pleased to continue to execute on our financial strategy.”
ADVENT BUILDS RELATIONSHIPS WITH ERNST & YOUNG, FT INTERACTIVE DATA AND TD WATERHOUSE
Advent signed a strategic relationship agreement with Ernst & Young LLP in the first quarter, whereby Ernst & Young will provide advisory services related to Advent's Geneva® and Advent Partner® products, which have a strong presence in the hedge fund market.
"We've experienced recent growth in our Geneva business leading us to reach out to Ernst & Young, which has very solid business advisory services capabilities, to ensure that our clients continue to receive the high quality of services consistent with our standards," said Caswell.
“Our organizations’ services are very complementary," said Joel Press, Partner and National Director of Alternative Investment Products at Ernst & Young. "Advent's Geneva and Advent Partner products have a strong reputation in the hedge fund market, which presents us with a great opportunity to continue to grow our practice in that area.”
Advent entered into a strategic alliance during the first quarter with FT Interactive Data, the major operating division of Interactive Data Corporation (NASDAQ: IDCO), a leading supplier of financial information to global markets. FT Interactive Data has become an Advent Technology Platform Partner, and will integrate its real-time offering into the Advent Office™ platform, adding more functionality for Advent clients. Advent and FT Interactive Data already have an extensive relationship built around end-of-day pricing and security master information, and this will extend that relationship to provide real-time quotes, news, and related information to interface directly with Advent’s portfolio and trade order management systems, and Advent’s MyAdvent™ application.
In an announcement yesterday, Advent reported it has reached an agreement with TD Waterhouse Institutional Services where Advent will provide TD Waterhouse with software and application tools for use by TD Waterhouse’s 2,000 independent investment advisor clients. Through this agreement, TD Waterhouse’s investment advisor clients will have two options for accessing Advent’s suite of software applications and solutions architecture: Fully-integrated within Veo, TD Waterhouse’s proprietary Internet-based account management and trading platform, or through installing and running Advent’s software in-house, on the advisor’s own servers.
“The choices TD Waterhouse is providing to its independent investment advisor clients through their work with us will directly result in advisors having added flexibility in managing their client portfolios,” said Caswell. “This agreement marks an important step in Advent’s work to provide comprehensive solutions for the institutional brokerage market.”
ADVENT TRUSTEDNETWORK GROWS THROUGH NEW RELATIONSHIPS
In the first quarter SEI Investments, a leading provider of investment processing solutions to bank trust departments, signed an Advent TrustedNetwork® (ATN) agreement with Advent, whereby SEI will be a subscriber to ATN data, and will also offer data integration services to its bank clients, distributing ATN data interfaces. This deal, an extension of Advent’s existing distribution agreement with SEI for Advent Office, greatly enhances the relationship between the two companies.
“We’re extremely pleased to grow this important relationship into our data business as well, and feel it’s a great endorsement by SEI that they are participating so fully in Advent TrustedNetwork,” said Caswell. “With SEI having some of the largest, most prominent banks in the nation as clients, this expanded relationship will help us gain even more traction in this important marketplace.”
During the first quarter, Advent completed the acquisition of Kinexus Corporation. Kinexus brings its client base of leading financial institutions to Advent, and continues to offer internal account aggregation and manual data management services. Combining Kinexus’ expertise and technology with Advent TrustedNetwork, Advent now offers the most comprehensive internal and external consolidated investment data reporting solution available. Approximately 100 Kinexus employees from its New York facilities have joined Advent.
GENEVA CONTINUES TO ADD CLIENTS
Among the clients that selected Geneva during the first quarter was Fischer Francis Trees & Watts, Inc. and its affiliates (FFTW), a global institutional fixed income investment manager. Geneva is Advent's advanced, real-time portfolio accounting system for multi-currency, high performance portfolio accounting. FFTW manages $34 billion in assets for 162 institutional clients. The firm will use Geneva in its New York and London offices to replace two separate systems currently used to process multi-currency and US domestic fixed income transactions.
"Tying both of these functionalities into one robust global system will alleviate potential operational risk, and will allow us to integrate it with our internal trading and data warehousing systems for a truly straight-through processing environment," said Michael Wyne, Managing Director of Global Securities Operations for FFTW.
INVESTMENT FIRMS OF ALL SIZES CHOOSE ADVENT OFFICE
Among the many new firms to choose Advent Office this quarter are Simmons First Trust Company N.A., a trust company located in Pine Bluff, Arkansas, Byram Capital Management LLC, an investment manager in Rye Brook, New York with more than $150 million in assets under management, and Pennant Capital Management, a hedge fund located in Chatham, New Jersey managing more than $300 million.
Also in the first quarter, Silvercrest Asset Management Group, LLC, an investment manager in New York City that serves high net worth individuals and charitable foundations, chose Advent Office to support its business. “Advent solutions will provide the technology we need to get our business up and running,” stated Martin Jaffe, the firm’s Chief Operating Officer. “We chose Advent Office because it will automate everything from portfolio accounting, to trade order management, to reconciliation. No other provider came close to the breadth and functionality of their offering, and we believe that the operational efficiencies we gain will allow us to spend more time building strong personal relationships with our clients.”
Each quarter, existing Advent Office clients often choose to license additional components in the suite as their business needs become more complex. Among them this quarter is Wasatch Advisors, an investment manager in Salt Lake City, Utah with more than $6 billion in assets under management, which chose Sentinel. Sentinel is a state-of-the-art pre- and post-trade compliance product that enables asset managers to automatically detect and prevent breaches of client, regulatory and management investment restrictions.
“We have been using Advent solutions for more than five years, and in that time they have been very responsive to our changing needs as our company has grown,” stated Dwight Ricks, Chief Information Officer of Wasatch Advisors. “Our trading volumes have multiplied over the years and we recently began looking for a way to strengthen the automation of pre- and post-trade compliance. We believe adding Sentinel to our existing Moxy® application will allow us to do just this, without requiring us to overhaul our existing operational procedures.”
ADVENT OFFICE ESSENTIALS EXPANDS REACH
As announced last week, Advent Office Essentials, Advent’s packaged solution designed to give small to medium-sized investment advisory firms quick and easy access to Advent’s leading software and data solutions, has raised the eligible maximum level of assets under management from $50 million to $100 million. The program, launched in November 2001, now reaches an even larger number of firms to deliver Advent’s Axys® portfolio accounting solution, Advent Custodial Data™ interfaces, implementation, ongoing technical support and other features, in one packaged solution.
PAUL VOLCKER TO SPEAK AT ADVENT SPRING “SOLUTIONS” CONFERENCE
Paul A. Volcker, former Chairman of the Board of Governors of the Federal Reserve System, will be the featured keynote speaker at Advent’s annual Spring users’ conference, “Solutions 2002,” at the San Francisco Marriott, April 22-24. Mr. Volcker currently serves as Chairman of the Board of Trustees of the International Accounting Standards Committee. In February Mr. Volcker was hired by Arthur Andersen to help change its audit practices following the collapse of its client, Enron.
ADVENT FIRST QUARTER CONFERENCE CALL
Advent will be hosting its first quarter conference call at 4:45 Eastern Time today, April 16, 2002. The number to dial-in will be 877-692-2137 or 973-628-9554. If you are unable to listen to the call at this time, a replay will be available through April 23, 2002 by calling 877-519-4471 or 973-341-3080, pass code 3201429.
ABOUT ADVENT
Advent Software, Inc. has been providing trusted solutions to the worlds’ leading professional money managers since 1983. Advent’s quality software, data, services and tools enable managers to improve service and communication to their clients, allowing them to grow their business while controlling costs. Advent Office, the industry's first and only Enterprise Investment Management solution, enables investment firms to build a truly client-centric organization. Advent Office is a suite of complementary products used to automate the entire range of investment management functions, including portfolio management, client relationship management, trade order management, data warehousing, partnership accounting, reconciliation management, and web-based portfolio, performance and analytic reporting. Advent has licensed its products to more than 6,500 financial institutions in 55 countries for use by more than 60,000 concurrent users. The company's common stock is traded on the Nasdaq National Market under the symbol ADVS.
The forward looking statements included in this press release, which reflect management's best judgment based on factors currently known, involve risks and uncertainties. These risks and uncertainties include potential fluctuations in results and future growth rates, the successful development and market acceptance of new products and product enhancements, fluctuations in the financial markets, challenges assimilating acquired entities, and other risks detailed from time to time in the company's SEC reports, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Advent Software's Investor Relations Department at 415-645-1243, or by visiting Advent's Investor Relations website at http://www.advent.com. Actual results may differ materially.
- FINANCIAL HIGHLIGHTS -
Condensed Consolidated Balance Sheets and Statements of Operations (PDF)
| Contact: |
Irv H. Lichtenwald - CFO
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107
(415) 543-7696
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