Advent Software Reports First Quarter Results
Total Net Revenues Up 11 Percent Year-Over-Year Earnings Per Share of $0.02
San Francisco, CA, Wednesday, April 27, 2005 - Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the first quarter ended March 31, 2005.
RESULTS
Total net revenues for the first quarter of 2005 were $39.6 million, compared with $41.0 million in the fourth quarter of 2004, and $35.7 million in the same quarter last year.
Total expenses, including cost of revenues, for the first quarter of 2005 were $39.7 million, compared with $44.1 million in the fourth quarter of 2004, and $37.0 million in the same quarter last year. Expenses in the first quarter included approximately $1 million for work related to the year-end audit of our financial statements and internal controls, including Section 404 Sarbanes-Oxley compliance.
Net income for the first quarter of 2005 was $785,000 or $0.02 per share, compared with a net loss for the fourth quarter of 2004 of $716,000 or $0.02 per share. The same quarter last year recorded a net loss of $1.1 million, or $0.03 per share.
Revenue and cost of revenue amounts for the comparable 2004 periods have been changed to reflect the change in accounting treatment for soft dollar brokerage fees for third party products from gross to net reporting.
Cash, cash equivalents and short-term investments totaled $131.1 million as of March 31, 2005. This compares to $165.5 million at December 31, 2004. During the first quarter, Advent repurchased 2,124,000 shares of its common stock at a cost of $38.0 million. Operating cash flow for the quarter was $5.4 million.
PERSPECTIVE
“In the first quarter, we achieved strong results across key areas: revenue growth, achieving positive earnings per share, the transition to term licensing, expanding our presence in the high end of the market, and continued progress in product development. We are well positioned for growth as we continue to provide leading software and services to investment management firms worldwide,” said Stephanie DiMarco, Chief Executive Officer of Advent.
GUIDANCE
Advent issued the following guidance:
- Q2 2005 revenues are projected to be in the range of $39 million to $41 million;
- Full year 2005 revenues are projected to be in the range of $158 million to $163 million, which reflects the change in accounting treatment for soft dollar brokerage fees;
- Q2 2005 expenses, including cost of revenues, are projected to be in the range of $40.5 million to $41.5 million;
- Full year 2005 expenses are projected to be in the range of $158.5 million to $163.5 million, including amortization of intangibles;
- Amortization of intangibles included in cost of revenues will be approximately $600,000 per quarter, and that related to other intangibles will be approximately $1.1 million per quarter;
- Common shares outstanding will increase by roughly 1 percent from the first quarter ending share count of 30.7 million shares, excluding the possible effect of any stock repurchases; and
- Assuming the price of our common stock remains unchanged during Q2 2005, weighted average common shares outstanding on a diluted basis for Q2 2005 will be approximately 600,000 shares higher than on a basic basis.
INVESTOR CALL
Advent will host its first quarter results conference call at 8:30 a.m. EDT today, Wednesday, April 27, 2005. To participate via phone, please dial 888-812-3873 and request conference ID number 5544383. If you are unable to listen to the call at this time, a replay will be available through May 4, 2005 by calling 800-642-1687, conference ID number 5544383.
The conference call will also be web-cast live at www.advent.com/about/presentations, and will be archived at the same location.
ABOUT ADVENT
Advent Software, Inc. (www.advent.com), a multi-national firm, has been providing trusted solutions to the world’s leading financial professionals since 1983. Firms in 50 countries using Advent technology manage investments totaling more than US $8 trillion. Advent’s quality software, data, services and tools enable financial professionals to improve service and communication to their clients, allowing them to grow their business while controlling costs.
FORWARD LOOKING STATEMENTS
The forward looking statements included in this press release, including financial guidance for the second quarter of 2005, which reflect management’s best judgment based on factors currently known, involve risks and uncertainties that could cause actual results to differ materially from our expectations and guidance. These risks and uncertainties include potential fluctuations in results and future growth rates, changes in the length of our sales cycles, the successful development and market acceptance of new products and product enhancements, continued uncertainties and fluctuations in the financial markets, 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, as amended, copies of which may be obtained by contacting Advent Software at 415-645-1787, or by visiting Advent’s Investor Relations website at www.advent.com. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
-FINANCIAL HIGHLIGHTS TO FOLLOW-
Condensed Consolidated Balance Sheet and Statements of Operations (PDF)
| Contact: |
Graham Smith - Chief Financial Officer
Advent Software
301 Brannan Street
San Francisco CA 94107
(415) 543-7696 |