Advent Reports Fourth Quarter Results; Net Income Up 38%, License Revenue Up 35%

Advent Reports Fourth Quarter Results; Net Income Up 38%, License Revenue Up 35%

San Francisco, January 22, 2002 - Advent Software, Inc. (Nasdaq: ADVS) today announced that revenue for the fourth quarter ended December 31, 2001 was $52.4 million, up from $40.5 million in the same quarter of last year. Net income for the quarter was up 38% to $12.3 million or 34 cents per diluted share. This compares to $8.9 million or 26 cents per diluted share in the fourth quarter of last year.

For the year, net revenues were $170.2 million, up from $134.9 million in 2000. Net income for 2001 was $31.5 million or 89 cents per diluted share from $25.8 million or 75 cents per diluted share last year.

“We are pleased to report another strong quarter,” stated Peter Caswell, Chief Executive Officer of Advent Software. “Not only did institutions of all types and sizes continue to adopt our comprehensive software, data and services solutions, we also entered into numerous strategic relationships that will help diversify our revenue streams even more going forward.”


Bank of New York and Credit Suisse First Boston's (CSFB) Private Client Services Group are among a number of firms that have chosen to participate in Advent TrustedNetwork® as authorized data providers. Advent TrustedNetwork is the industry's first external consolidation solution that enables financial organizations to deliver consolidated account data from multiple institutions. "Partnering with Advent TrustedNetwork will help CSFB provide unique reporting capabilities to our ultra high net worth clients," said Mike Campbell, Global Head of CSFB's Private Client Services Group.


Expanding its products and services through alliances with industry-leading firms, Advent announces a number of activities in the fourth quarter that will offer its clients a variety of front-office applications, in addition to consolidation and data management services. These agreements indicate the expansion of Advent’s data business and growing demand for institutional-quality data from advisors serving high-net-worth investors.

Advent entered into a strategic alliance in the fourth quarter with Thomson Financial. Thomson Financial is part of The Thomson Corporation, a leading global provider of integrated information solutions for business and professional customers (TSE: TOC). Through the alliance, Advent and Thomson Financial will work together to integrate products from Thomson’s First Call, Vestek and AutEx businesses into the Advent Office™ suite of products. This integration will allow Advent to deliver Thomson’s industry leading front-office applications for equity research, portfolio analysis and indications of interest to Advent clients through Advent’s MyAdvent™ application.

Advent signed a strategic relationship for data distribution with Investment Scorecard, a Nashville-based provider of outsourced performance reporting solutions that serves more than 450 institutions and monitors more than $150 billion in assets. Investment Scorecard's service, created through its proprietary software system, gives institutions online access to an accurate, third party report of the customer's portfolio performance. Through its deal with Advent, Investment Scorecard now has access to Advent's comprehensive infrastructure of data interfaces to the industry's leading custodial institutions.

Also in the fourth quarter, Advent signed a co-marketing agreement with Finaplex, which provides enterprise software solutions for the wealth management industry. Through this agreement, Finaplex will be able to offer its platform to Advent clients in need of a collaborative solution with consolidated data, value-added analytics and integrated transactions.

During the fourth quarter, Advent acquired the consolidation and data processing assets of ManagerLink, an early adopter of Advent TrustedNetwork and a provider of outsourced data management and consolidation services.

As announced on December 31st, Advent signed a definitive agreement to acquire privately held Kinexus Corporation, an industry leader delivering sophisticated wealth management reports to advisors of high net worth investors. The transaction is subject to various closing conditions, which Advent believes will be satisfied later in the first quarter. By combining its ability to provide internal account aggregation and manual data management services with Advent TrustedNetwork, Advent will now offer the most comprehensive internal and external investment data reporting solution available.

And in November Advent launched WealthLineSM, an innovative wealth management service that will enable financial institutions to collaborate with their clients, gather more assets, and greatly enhance customer relationship management. Built in partnership with Microsoft, WealthLine will feature Microsoft’s essential collaboration tools, combined with secure document publishing, portfolio reporting and financial content from the award-winning MSN Money personal finance site. Together the two companies are delivering a robust Web service that delivers a dynamic, information-rich experience for the investor, and a highly automated, easy-to-use communication tool for the advisor.


The fourth quarter showed strong performance for Geneva®, with a number of new institutions choosing Geneva for its proven capabilities as a global portfolio accounting solution serving firms that operate worldwide. Included in these firms, Bank of Bermuda, a leading administrator of alternative investment vehicles, is now rolling out Geneva to its worldwide operations, in addition to Advent Partner® for partnership accounting. Bank of Bermuda and Advent will work together to develop further technology products for use among their alternative fund clients. And GlobeOp Financial Services, which purchased Geneva in the second quarter of 2001, completed implementation of the service in the fourth quarter. GlobeOp, with offices in New York and London, offers automated, state-of-the-art middle- and back-office support services, fund administration and risk reporting for hedge funds, fund of funds, fund managers and high net worth family wealth managers throughout Europe and North America.

In addition, a variety of firms throughout the country chose Advent Office over the past three months, including Green Square Capital Management, an investment counselor located in Memphis, Tennessee; Gibraltar Bank FSB, a private bank located in Coral Gables, Florida; and Lawhill Capital Partners, LLC, a hedge fund located in Westport, Connecticut.


As previously announced on December 12th, Advent has acquired the independent distributors of its software, data and services in Denmark, Sweden and Norway for approximately US $12 million. During the fourth quarter, Sparekassernes Datacenter (SDC), a Danish full-service data center owned by its 80 Danish member banks, chose Advent Office for its portfolio and trade order management. SDC also selected Advent INX™ to help them develop a highly scalable, personalized investor-facing website for their clients. Advent INX enables investment managers to display performance, holdings, yield and other portfolio data on websites specifically designed for their clients.

Advent continued to attract numerous new clients in Europe over the past quarter through its other independent distributors in Switzerland, the United Kingdom, the Netherlands and Greece. Collectively, the independent European business is known as Advent Europe.


Advent will be hosting its fourth quarter conference call at 4:45 Eastern Time today, January 22, 2002. The number to dial-in will be 877-692-2137 or 973-628-9554. If you are unable to listen to the call at this time, a replay will be available through January 29, 2002 by calling 877-519-4471 or 973-341-3080, passcode 3048014.


Advent Software, Inc. has been providing trusted solutions to the worlds’ leading professional money managers since 1983. 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 Office, the industry's first and only Enterprise Investment Management solution, enables investment firms to build a truly client-centric organization. Advent Office is a suite of complementary products used to automate the entire range of investment management functions, including portfolio management, client relationship management, trade order management, data warehousing, partnership accounting, reconciliation management, and web-based portfolio, performance and analytic reporting. Advent has licensed its products to more than 6,500 financial institutions in 45 countries for use by more than 60,000 concurrent users. The company'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, 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 by visiting Advent's Investor Relations website at Actual results may differ materially.


  • Condensed Consolidated Balance Sheets and Statements of Operations (PDF)

    Irv H. Lichtenwald - CFO
    Robin Goodstein – Inv Relations
    Advent Software, Inc.
    301 Brannan Street
    San Francisco  CA  94107
    (415) 543-7696