San Francisco, CA, April 15, 2003 - Advent Software, Inc. (Nasdaq: ADVS) today announced that revenue for the first quarter ended March 31, 2003 was $33 million, compared with $49.2 million in the same quarter of last year. Net loss for the quarter was $7.5 million or $0.23 cents per share under GAAP, which includes amortization charges for intangibles and restructuring charges.
“Our first quarter revenues reflect the current challenging market conditions, and are consistent with our April 3rd announcement,” said Peter Caswell, President and Chief Executive Officer of Advent Software. “During the quarter we significantly reduced our overall expenses, and we ended the quarter with $163.4 million in cash.”
“We proudly celebrate our 20th anniversary as an independent software provider to the financial services industry. Advent’s market leadership is evidenced by our large installed base of customers, our unparalleled track record in innovation and our strong balance sheet. In 2003 we will continue to invest in product development to further expand Advent’s solutions to enhance our clients’ businesses,” continued Caswell.
GENEVA® HAS RECORD QUARTER; INTRODUCED TO GLOBAL ASSET MANAGERS
Geneva had a strong quarter, with a record number of new firms, particularly mid-sized hedge funds, choosing to adopt this unique solution. Through its innovative technical architecture, Geneva delivers sophisticated tools to back offices, allowing more reliable accounting data on a more timely basis at a much lower cost than traditional systems. Geneva also significantly enhances firms’ straight-through processing (STP) performance by delivering investment accounting data that is accurate from the outset.
Among the firms that chose Geneva this quarter was AQR Capital Management LLC. “Geneva’s integrated general ledger, the breadth of its product coverage and its open and scalable technology platform are what we feel differentiates the product from its competitors,” said Aaron Goldberg, Chief Financial Officer of AQR Capital Management, LLC. “I’ve used Advent products at other companies I’ve worked at, and feel very confident in the company's ability to support AQR's business.”
The first quarter also marked the launch of Geneva into the global asset management market. These large asset management firms are under pressure to adapt to changing investment strategies while closely managing operating costs, and they spend a large portion of their back office expense in the portfolio accounting function. Geneva specifically addresses these firms’ needs to realize significant gains in productivity and efficiency.
“We're very pleased with the progress we made with Geneva in the first quarter, not only in sales, but in the growth of the pipeline,” said Caswell. “Geneva is becoming the market-leading solution because it helps firms achieve significant operational efficiencies, particularly valuable in today’s tough environment.”
LAUNCHES SOLUTION FOR INDEPENDENT BROKER DEALERS
In January, Advent launched ‘Advent/Techfi for Broker-Dealers,’ an integrated set of solutions to help firms attract and retain independent advisor representatives and provide those representatives with a choice of leading technology tools to run their businesses. This set of solutions addresses current key trends, which include an influx of investors seeking professional advice, and advisors competing amidst a crowded financial services market to win the “trusted advisor” relationship with their investor client.
‘Advent/Techfi for Broker-Dealers,’ is based on the combined resources of Advent and Techfi Corporation, a wholly owned subsidiary of Advent. It offers consolidated reporting, performance reporting, portfolio management, compliance, integration with leading third-party applications, and a comprehensive sales and marketing program to assist independent broker-dealers in creating adoption among their representatives.
Atlas Brokerage Company L.P. is among the firms to have selected Advent/Techfi for Broker-Dealers in the first quarter. Tim Gerwing, Chief Technology Officer of Atlas Brokerage said, “This solution will provide a superior and often-requested technology tool to our advisors while enhancing our back office compliance provisions. We also now have a service that will help us recruit advisors in the future.”
“The solution we launched in the first quarter shows the significant progress we've made in integrating Techfi and Advent over the past several months,” said Caswell.
FIRST QUARTER RESTRUCTURING CHARGE
As previously announced, Advent recorded a $3.5 million restructuring charge during the first quarter. This charge is primarily related to reducing excess office facilities and eliminating duplicative functions that resulted from the integration of recent acquisitions. The restructuring charge includes $2.5 million relating to the consolidation of office space in the New York City area and Melbourne, Australia and $1 million for severance payments to former Advent employees in both locations.
ADVENT FIRST QUARTER CONFERENCE CALL
Advent will be hosting its first quarter conference call at 5:00 p.m. Eastern time today, April 15, 2003. To participate via phone, please dial (973) 582-2700. If you are unable to listen to the call at this time, a replay will be available through April 29th by calling (973) 341-3080, pass code 3851925. Today’s conference call will also be web-cast live and archived on www.advent.com, and can be found on the Investor Relations page through the ‘Presentations’ link.
Advent Software, Inc. (www.advent.com) has been providing trusted solutions to the world’s leading financial professionals since 1983. Firms in 55 countries use Advent technology to 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.
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, 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’s Investor Relations department at 415-645-1243, or Advent’s Investor Relations website at http://www.advent.com/. Actual results may differ materially.
- FINANCIAL HIGHLIGHTS -
Graham Smith - Chief Financial Officer
301 Brannan Street
San Francisco CA 94107