San Francisco, CA, January 21, 2003 - Advent Software, Inc. (Nasdaq: ADVS) today announced that revenue for the fourth quarter ended December 31, 2002 was $36.3 million, compared to $52.4 million in the same quarter of last year. Net loss for the quarter was $6.1 million or 19 cents per share under Generally Accepted Accounting Principals (GAAP). (First Call consensus estimates for the quarter are not reported under GAAP and exclude the after-tax amortization of intangibles.)
Net cash provided during the fourth quarter from operating activities was $3.3 million.
For the year, net revenues were $159.4 million, compared to $170.2 million in 2001. Net loss for 2002 was $19.2 million or 57 cents per diluted share compared to net income of $31.5 million or 89 cents per diluted share last year.
“Although we contemplate a continued difficult environment for the financial services industry during 2003, we are beginning to see some positive signs in licensing activity in some segments in the United States, particularly in smaller sized firms and in the bank and trust segments,” stated Peter Caswell, President and Chief Executive Officer of Advent Software. “Our recurring revenue businesses for wealth management services and Advent OutsourceSM offerings are also seeing increased interest.”
NORTHERN TRUST VALUE INVESTORS AND TD WATERHOUSE INVESTMENT ADVICE CHOOSE ADVENT TO BUILD SEPARATELY MANAGED ACCOUNTS PROGRAM
Many existing clients chose additional Advent solutions over the past few months. One of these clients, Northern Trust Value Investors, located in Palm Beach, Florida, recently chose to add Advent’s outsourced data management, reconciliation and reporting service, which enables clients to report on both in-house managed accounts and externally managed accounts. This service will be supplying Northern Trust Value Investors account data in Axys®-ready format via the Advent TrustedNetwork® infrastructure for the accounts that Northern Trust specifies.
“Northern Trust Value Investors has used Advent solutions for over ten years,” stated Melinda S. Mecca, Chief Operating Officer of Northern Trust Value Investors. “When we began putting plans in place to offer a separately managed accounts program, Advent was the logical technology choice. We are confident that Advent’s solution will allow us differentiate ourselves by offering reconciled, consolidated reports for more than 2,000 accounts today, and to expand our offering over time.”
In the fourth quarter, TD Waterhouse Investment Advice, a division of TD Waterhouse Canada, Inc., also chose a solution from Advent that will help the firm grow its separately managed account business.
OPPORTUNITIES IN BANKS BEGIN TO GROW
Banks are increasingly looking to Advent for performance measurement, trade order management and wealth management solutions as they expand investment programs to their clients. A few of the new banks that chose Advent Office during the fourth quarter include Washington Trust Bank in Spokane, Washington, UMB, located in Kansas City, Missouri and United Mizrahi Bank Limited, an Advent Europe client located in London, England.
“We chose Advent because of its strong reputation in the industry for its state-of-the-art technology and user friendliness,” stated Elizabeth B.A. Miller, Senior Vice President and Chief Operating Officer of UMB Investment Advisors. “We believe that our portfolio managers will be able to greatly improve their productivity by utilizing Advent technology for trading and portfolio accounting. And Advent’s integrated platform will give us the opportunity to layer on other wealth management offerings as time progresses.”
ADVENT OUTSOURCE AND TECHFI CONTINUE GROWTH
In January 2003, Advent signed a two-year agreement to enable TD Waterhouse to offer Advent Outsource data management services to its independent advisor clients. As announced in April 2002, Advent and TD Waterhouse signed an alliance to offer Advent’s software and application tools to over 2,400 independent investment advisor clients who custody assets with TD Waterhouse. This expanded relationship will allow TD Waterhouse to offer cross-institutional, consolidated household reporting to their high net worth investors.
And showing the strength of the combined Advent and Techfi resources, TechFi is pleased to announce a new client relationship with Woodbury Financial Services, a member of The Hartford Financial Services Group, Inc.
MERRILL LYNCH BUSINESSES JOIN ADVENT TRUSTEDNETWORK
Three of Merrill Lynch's businesses joined Advent TrustedNetwork as account providers at the beginning of the first quarter. Merrill Lynch's Money Manager Services, Global Prime Brokerage and Broadcort Clearing businesses are participating. These three businesses add to the many firms that joined Advent TrustedNetwork as account providers in the fourth quarter, including Fleet National Bank, ABN Amro Prime Broker, RBC Financial Group, Deutsche Bank Equity Prime Service, BNY Western Trust Company, Sanford C Bernstein & Co., LLC, and Fiduciary Trust. The addition of these firms and the numerous accounts they bring to the network adds tremendous value to the participants of Advent TrustedNetwork, and continues to be a growing source of recurring revenue for Advent.
RESTRUCTURING CHARGE EXPECTED IN THE FIRST QUARTER
Advent continues to concentrate on new growth areas, including the data business and the advisory business. Several of Advent’s acquisitions over the last year have been made specifically to expand opportunities in those areas. As a result of Advent’s strategy and the integration of these acquisitions, the company is seeing opportunities to better align resources and to consolidate duplicate efforts in parts of its functions and facilities. As such, Advent will be taking a restructuring charge in the first quarter of approximately $2 million to $3 million, primarily related to consolidating office space in New York.
ADVENT BRINGS ON TREASURER
“We are pleased to announce that we have hired Graham V. Smith as Treasurer and Chief Financial Officer Designate,” continued Caswell. “As we announced in May 2002, our current Chief Financial Officer, Irv H. Lichtenwald, had plans to retire when we found a suitable replacement.
“Graham will work closely with Irv over the next month or two to ensure a smooth transition, at which time Graham will assume the role of Chief Financial Officer,” said Caswell. “We are extremely happy to welcome Graham on board and we are quite confident that his range of experience will be very suitable to the needs of Advent.”
Smith, a 20-year finance veteran, was most recently Chief Financial Officer of Vitria Technology, Inc., an enterprise application integration software company. Prior to Vitria, Smith served four years as Chief Financial Officer for Nuance Communications, Inc., a voice recognition software company, where he led the company through both private and public financings. Earlier in his career Smith spent eleven years at Oracle Corporation in a variety of senior finance roles, most recently as Vice President of Finance for worldwide operations. In this role, Smith reported to Oracle's President and Chief Operating Officer, and played an instrumental role in supporting Oracle's emergence as the second largest software company in the world. Smith holds a bachelor’s degree in economics and politics from Bristol University in England and is a member of the Institute of Chartered Accountants in England and Wales.
"I am very excited to be joining Advent," said Smith. “Advent has established an unparalleled reputation in providing products and solutions for investment professionals. The company’s balance sheet and financial track record is exemplary and I look forward to working with the rest of the executive team as I transition into the CFO role over the next couple months."
ADVENT FOURTH QUARTER CONFERENCE CALL
Advent will be hosting its fourth quarter conference call at 4:45 Eastern Time today, January 21, 2003. The number to dial-in will be 973-582-2745. If you are unable to listen to the call at this time, a replay will be available through January 28th by calling 973-341-3080, passcode 3679288.
Advent Software, Inc. has been providing trusted solutions to the world’s leading professional money managers 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 managers to improve service and communication to their clients, allowing them to grow their business while controlling costs. Advent’s common stock is traded on the NASDAQ National Market under the symbol ADVS.
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 -
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107