Advent Reports Revenue of $52.4 Million in Second Quarter, 18% Growth Over Prior Year
Company Achieves $17 Million in New Term Contract Bookings, 32% Increase Over Previous Year
SAN FRANCISCO – July 25, 2007 – Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the second quarter ended June 30, 2007.
“We are extremely pleased with the results achieved in the second quarter of this year,” said Stephanie DiMarco, Founder and Chief Executive Officer. “Comparing this quarter to the second quarter of 2006, the growth is exceptional: bookings are up 32% and revenues are up 18%. Operating profitability has improved significantly as we’re starting to see the leverage of the term license model flowing into our income statement. These results demonstrate the great momentum we’re seeing across our product suite as well as our focused commitment to execution, which we believe will continue to yield strong Company performance and improved financial results over the long term,” added DiMarco.
The Company reported total net revenues of $52.4 million for the second quarter of 2007, compared with $44.4 million in the second quarter of 2006.
Total expenses for the second quarter of 2007, including cost of revenues, were $49.3 million, compared with $43.9 million in the second quarter of 2006.
Income from operations for the second quarter of 2007 was $3.0 million, or 6% of revenue, compared with $0.5 million in the second quarter of 2006.
During the second quarter of 2007, the Company recognized interest income and other income, net of $3.9 million, primarily as a result of a gain on the sale of two equity investments.
Net income for the second quarter of 2007 was $5.1 million, compared with net income of $1.6 million for the second quarter of 2006.
Diluted earnings per share in the second quarter of 2007 were $0.18, which compares to diluted earnings per share of $0.05 in the second quarter of 2006. Cash, cash equivalents and short-term investments totaled $34.1 million as of June 30, 2007, which compares to $97.2 million as of June 30, 2006.
Cash flow from operations in the second quarter of 2007 was approximately $12.0 million, compared with $12.1 million in the second quarter of 2006.
SECOND QUARTER HIGHLIGHTS
- Strong Term Contract Bookings: Advent signed new term contract bookings totaling $17.0 million with an average term of 3.0 years, which compares with $12.9 million and an average term of 3.1 years in the second quarter of 2006. Since the start of the transition three years ago, Advent has sold more than $100 million in term contract value.
- Customer Momentum: Advent saw continued demand for its products, adding a record 15 new customers for Geneva®, as well as 21 customers for Advent Portfolio Exchange® (APX) and more than 20 new customers for Moxy®.
- Product Investment and Innovation: Advent launched Moxy® 6.0, the industry’s most widely used order management system. Moxy® 6.0 can better meet the needs of even the largest institutional asset management firms and high-net-worth asset managers, with features that include enhanced trading workflow, consolidated group trading, commission management functionality, and a new multi-tiered architecture. The Company is currently preparing for major new releases of its flagship portfolio accounting products, APX and Geneva®, as well as the release of a new trading compliance product.
- Completion of the Stock Repurchase Program: Advent completed the repurchase of shares under the Stock Repurchase Program authorized by the Company’s Board of Directors on February 9, 2007. Advent repurchased 1.7 million shares of the Company’s common stock in the second quarter, for a total cash outlay of $61.0 million. The Company drew down $25 million of its $75 million revolving credit facility to help fund the repurchase of shares.
Advent issued the following guidance for the third quarter of 2007:
- Revenues are projected to be in the range of $52 million to $54 million;
- Expenses are projected to be in the range of $51 million to $52 million. Included in expenses are approximately $1 million of expenses associated with the Advent Conference, and approximately $4.6 million of amortization of developed technology and other intangibles, and stock-based compensation; and
- Diluted weighted average shares outstanding will increase by roughly 0.5% from the second quarter of 2007 level of 27.8 million shares to approximately 27.9 million shares, excluding the impact of any share repurchases.
Advent reiterates guidance for the full year 2007 as follows:
- Revenues are projected to be in the range of $206 million to $211 million;
- Term contract bookings are projected to be in the range of $54 million to $59 million;
- Operating cash flow is projected to be in the range of $54 million to $57 million; and
- Effective tax rate projected to be in the range of 30% to 35%.
Advent Software, Inc. will host its Q2 2007 quarterly earnings conference call at 5:00 p.m. Eastern time today. A Q2 2007 earnings presentation, including highlights and detailed financial information, is currently available on http://investor.advent.com
. To participate via phone, please dial 888-812-3873 and request conference ID #7560312. A replay will be available through midnight, August 1, 2007, by calling 800-642-1687 and referencing conference ID #7560312. The conference call will also be web-cast and pod-cast live and then archived on http://investor.advent.com
Advent Software, Inc. (www.advent.com
), a multi-national firm, has provided trusted solutions to the world’s leading financial professionals since 1983. Firms in 60 countries use Advent technology and manage investments totaling nearly US $14 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. Advent is the only financial services software company to be awarded the Support Center Practices certification for being a world-class support organization.
The forward looking statements included in this presentation, which reflect management's best judgment based on factors currently known, involve risks and uncertainties, and our actual results may differ materially from those discussed here. 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, and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2006 annual report on Form 10-K/A. The company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Advent, Advent Portfolio Exchange, Geneva, Moxy and Advent Revenue Center are registered trademarks or marks of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.
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