Advent Software Reports Second Quarter Results
San Francisco, CA, July 22, 2004 - Advent Software Inc. oday announced its financial results for the second quarter ended June 30, 2004.
RESULTS
Total revenue for the second quarter of 2004 was $37.0 million, compared with $36.8 million in the first quarter of 2004, and $32.8 million in the same quarter last year. Revenue growth year-over-year was driven primarily by increases of $2.2 million in license revenue and development fees and $2.2 million in maintenance and
recurring revenue.
Total expenses for the second quarter of 2004 were $45.3 million, compared with $38.1 million in the first quarter of 2004, and $46.7 million in the same quarter
last year.
Net loss for the second quarter of 2004 was $8.4 million or $0.25 per share, compared with a net loss for the first quarter of 2004 of $1.1 million or $0.03 per share. The same quarter last year recorded a net loss of $9.6 million, or $0.30
per share.
Cash, cash equivalents and short-term investments totaled $167 million as of June 30, unchanged from the first quarter. Operating cash flow was approximately $6.7 million, which was partially offset by payments related to the purchase of Advent UK and Advent Switzerland, announced in the second quarter, for $5.5 million.
PERSPECTIVE
“The second quarter marked steady progress on our corporate goals to grow revenue, introduce new products to the marketplace and consistently deliver value to our customers. As the leading provider of world-class software and services to investment management firms worldwide, we will continue to focus on improving our execution of our corporate strategy,” said Stephanie DiMarco, Chief Executive Officer of Advent.
STOCK REPURCHASE ACCOUNTING
Advent has reviewed its stock repurchases in 2001, 2002 and Q1 of 2003 and determined that its allocation of the entire purchase price, in excess of par value, for these repurchases as a reduction to additional paid-in capital was not the correct accounting treatment. Advent will adjust this allocation, resulting in additional paid-in capital increasing by a cumulative amount of approximately $41 million and retained earnings decreasing by the same amount as of December 31, 2003. The company’s income statement, cash, total stockholders’ equity and shares of common stock outstanding will be unaffected by these adjustments for all periods. Advent will file an amended 10-K for fiscal 2003 to restate the additional paid-in capital and retained earnings balances as of December 31, 2001, 2002 and 2003.
GUIDANCE
Advent issued the following guidance:
• Q3 2004 revenues are projected to be in the range of $36 million to $38 million;
• Full year 2004 revenues are projected to be in the range of $147 million to $152 million. The revenue estimate assumes that the value of license contracts sold under a term model remains at between five and 10 percent of total contracts sold. A significant increase in sales of term licenses would cause more license contract revenue to be deferred into 2005 and beyond;
• Q3 2004 expenses are projected to be in the range of $40.5 million to $41.5 million, including $3.5 million in amortization of intangibles;
• Full year 2004 expenses are projected to be in the range of $161 million to $166 million;
• Amortization of intangibles included in cost of revenues will be approximately $1.4 million per quarter, and that related to other intangibles will be approximately $2.1 million per quarter; and
• Weighted average shares outstanding will increase by roughly 1 percent per quarter from the second quarter comparative of 33 million shares, excluding the effect of any stock repurchases during Q3 2004.
INVESTOR CALL
Advent will host its second quarter results conference call at 5:00 p.m. Eastern time today, Thursday, July 22, 2004. To participate via phone, please dial (973) 582-2737. If you are unable to listen to the call at this time, a replay will be available through July 29, 2004 by calling (973) 341-3080, pass code 4947751.
The conference call will also be web-cast live at
http://www.advent.com/about/presentations.asp 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 and services 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 third quarter of 2004 and the full fiscal year, 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, 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 at 415-645-1787, or by visiting Advent’s Investor Relations website at http://www.advent.com/about/investor_relations.
FINANCIAL HIGHLIGHTS
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
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