Advent Software Reports Fourth Quarter and Full Year Results
San Francisco, CA, Tuesday, February 1, 2005 - Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2004.
RESULTS
Total revenue for the fourth quarter of 2004 was $42.5 million, compared with $38.6 million in the third quarter of 2004, and $36.9 million in the same quarter last year. Total revenue for the year ended December 31, 2004 was $154.9 million, compared with $137.2 million for the year ended December 31, 2003.
Total expenses, including cost of revenues, for the fourth quarter of 2004 were $44.9 million, compared with $43.2 million in the third quarter of 2004, and $42.2 million in the same quarter last year. Expenses in the fourth quarter included $5.1 million for amortization and impairment of intangibles, and a credit of $726,000 relating to updated estimates for prior restructuring charges. Total expenses, including cost of revenues, for the year ended December 31, 2004 were $171.9 million, compared with $176.8 million for the year ended December 31, 2003.
Net loss for the fourth quarter of 2004 was $398,000 or $0.01 per share, compared with a net loss for the third quarter of 2004 of $5.2 million or $0.16 per share. The same quarter last year recorded a net loss of $75.0 million, or $2.29 per share, and included a tax provision of $70.5 million, to record a full valuation allowance against deferred tax assets. Net loss for the year ended December 31, 2004 was $15.1 million, or $0.46 per share, compared to a net loss of $97.5 million, or $3.00 per share, in 2003.
Cash, cash equivalents and short-term investments totaled $165.5 million as of December 31, 2004. This compares to $158.0 million at September 30, 2004, and $160.1 million at December 31, 2003. Operating cash flow for the quarter was $6.8 million.
PERSPECTIVE
“With the addition of our strong fourth quarter to the full year, we are proud of our financial results for 2004. Revenues for the full year increased 13% over 2003 and operating cash flow for the year was $25 million. As the leading provider of software and services to investment management firms worldwide, we believe Advent is well positioned as we enter 2005,” said Stephanie DiMarco, Chief Executive Officer of Advent.
GUIDANCE
Advent issued the following guidance:
- Q1 2005 revenues are projected to be in the range of $38 million to $40 million;
- Full year 2005 revenues are projected to be in the range of $162 million to $167 million. The revenue estimates assume that between 20% and 30% of license revenue will be derived from term license agreements. A significant increase in sales of term licenses will cause more license contract revenue to be deferred into 2006 and beyond;
- Q1 2005 expenses, including cost of revenues, are projected to be in the range of $40 million to $41 million;
- Full year 2005 expenses are projected to be in the range of $160 million and $165 million, including amortization of intangibles;
- Amortization of intangibles included in cost of revenues will be approximately $600,000 in Q1 2005 and total $2.4 million for full year 2005, and that related to other intangibles will be approximately $1.1 million in Q1 2005 and total $4.3 million for full year 2005;
- Weighted average shares outstanding will increase by roughly 1 percent in the first quarter from the fourth quarter comparative of 32.6 million shares; and
- The guidance does not include an estimate for the costs of expensing options in the second half of 2005.
INVESTOR CALL
Advent will host its fourth quarter results conference call at 5:00 p.m. Eastern time today, Tuesday, February 1, 2005. To participate via phone, please dial 888-812-3873 and request conference ID number 3685718. If you are unable to listen to the call at this time, a replay will be available through February 8, 2005 by calling 800-642-1687, conference ID number 3685718.
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 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, the transition in our business model from perpetual to term licensing, 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 www.advent.com.
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 |