San Francisco, CA, October 21, 2004 - Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the third quarter ended September 30, 2004.
Total revenue for the third quarter of 2004 was $38.6 million, compared with $37.0 million in the second quarter of 2004, and $34.5 million in the same quarter last year.
Total expenses for the third quarter of 2004 were $43.2 million, compared with $45.3 million in the second quarter of 2004, and $43.1 million in the same quarter last year.
Expenses in the third quarter included a $3.4 million impairment charge related to Advent’s decision to discontinue certain Techfi products, and $3.4 million of amortization of intangibles.
Net loss for the third quarter of 2004 was $5.2 million or $0.16 per share, compared with a net loss for the second quarter of 2004 of $8.4 million or $0.25 per share. The same quarter last year recorded a net lost of $5.4 million, or $0.17 per share.
Cash, cash equivalents and short-term investments totaled $158 million as of September 30, 2004. This compares to $167 million at June 30, 2004. Operating cash flow was $5.8 million, which was offset by payments of $11 million used for Advent’s stock repurchase program, and $2.8 million in earn-out payments related to the purchase of Advent UK, Advent Switzerland and Advent Outsource.
“During the quarter we saw the tone of business improve, evidenced by slightly larger contracts and an increased number of Geneva® transactions, with six contracts signed last quarter. We also launched the newest version of Moxy®, Advent’s leading trade order management solution. Together with our improving financial results this quarter, I’m pleased with the company’s progress this year,” said Stephanie DiMarco, Chief Executive Officer of Advent.
Advent issued the following guidance:
• Q4 2004 revenues are projected to be in the range of $37.5 million to $39.5 million;
• Q4 2004 expenses are projected to be in the range of $41 million to $42 million;
• Q4 2004 amortization of intangibles included in cost of revenues will be approximately $1.2 million, and that related to other intangibles will be approximately $1.9 million; and
• Weighted average shares outstanding will increase by roughly 1 percent from the third quarter comparative of 32.9 million shares, excluding the effect of any stock repurchases during Q4 2004.
Advent will host its third quarter results conference call at 5:00 p.m. Eastern time today, Thursday, October 21, 2004. To participate via phone, please dial 888-812-3873 and request conference ID number 1398501. If you are unable to listen to the call at this time, a replay will be available through October 28, 2004 by calling 800-642-1687, conference ID number 1398501.
The conference call will also be web-cast live at (www.advent.com/about/presentations.asp, and will be archived at the same location.
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 fourth quarter of 2004, 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 www.advent.com.
Condensed Consolidated Balance Sheet and Statements of Operations (PDF)
Graham Smith - Chief Financial Officer
301 Brannan Street
San Francisco CA 94107