San Francisco, July 17, 2001 - Advent Software, Inc. (Nasdaq: ADVS) today announced revenue for the second quarter ending June 30, 2001 increased to $41.9 million, from $32.7 million in the same quarter last year, fueled by a 34 percent increase in license revenue. Net income rose 41% to $8.2 million or 24 cents per share. This compares with $5.8 million, or 17 cents per share in the prior year period.
For the six months ending June 30, 2001, revenue was $78.6 million, compared to revenue of $60.3 million for the first six months of 2000. Net income was up 47 percent to $14.2 million or 41 cents per share for the first half of 2001, compared with $9.7 million or 29 cents per share for the same period last year.
"We are very pleased with our progress in a tough economic environment, primarily because of the continued strength of our sales pipeline, particularly at the high end," stated Peter Caswell, President and Chief Executive Officer of Advent Software.
"Advent's ability to grow license revenue has been enhanced as we have successfully expanded our sales channels through various distribution relationships," continued Caswell. "In addition to independent distributors in Europe, we have previously announced distribution relationships with SunGard, Encompys, an affiliate of Accenture, and today we add SEI Investments (NASDAQ: SEIC) to the list. We also have begun working with various independent consulting organizations to provide services to some of our new clients. During the second quarter, we began to see the results of such distribution and consulting relationships, as we were able to achieve robust license revenue growth without straining our internal services resources. This leverage resulted in a second quarter operating margin of 26 percent, up from 22 percent last year."
ADVENT AND SEI INVESTMENTS FORM STRATEGIC INITIATIVE
In the second quarter, Advent signed a distribution agreement with SEI Investments, Inc., a leading provider of software and processing services to bank trust departments. Through this agreement, Advent will be a preferred provider of portfolio management and trade order management solutions, which will be distributed to users of SEI's Trust 3000 system.
"The integration of the Advent suite of products with SEI Investments' Trust 3000 anticipates the move to Straight-Through Processing and eliminates the need to support redundant data for our clients," stated Kevin P. Barr, Senior Vice President of Investment Processing and Investment Outsourcing Solutions at SEI Investments.
GENEVA¸ REACHES RECORD QUARTER
Sales of Geneva in the second quarter were very strong, reaching the largest number ever licensed in one quarter. The global hedge fund, hedge fund service provider, and investment fund markets were very active this quarter. Among the several new clients to Geneva this quarter is Paloma Partners Management Company, a Greenwich, CT-based investment fund management company.
"Geneva will help us create even more timely management information flow and enhance operational efficiencies," stated Randy Tam, Managing Director of Paloma Partners. "In addition, Geneva's open architecture will allow for smooth integration with our in-house developed applications."
In addition, Bowman Capital Management, a premier Silicon Valley investment advisory firm, went live with Geneva at the end of the second quarter. "The Geneva team did an extraordinary job of getting us up and running, even exceeding our expectations," stated Larry Bowman, President of Bowman Capital Management. "Geneva will provide us with the reliable information we need to react to the complex requirements of the global investment market, while allowing us to tailor the system for our own particular strategies."
NATIONAL CITY CORPORATION AND OTHERS CHOOSE ADVENT
National City Corporation, a $91 billion financial holding company based in Cleveland, OH, signed on for Advent Office in the second quarter. National City will use Advent's integrated investment management platform to gain workflow efficiencies among its front, middle, and back offices and to further enable its Straight-Through Processing and T+1 initiatives.
National City will implement Advent Office across multiple business lines within its enterprise, specifically within Institutional Asset Management and Private Investment Advisors, National City's asset management groups. National City's principle activities include commercial and retail banking, consumer finance, asset management, mortgage financing and servicing, and item processing.
National City joins a diverse group of clients that chose Advent Office during the past quarter. These include both new firms partnering with Advent and existing firms selecting additional solutions from the suite to help streamline their business and provide even better customer services to their clients.
Thompson Plumb Investment Management, an investment counselor located in Madison, WI with more than $1.2 billion in assets under management, selected Advent Office during the second quarter to help streamline its business and accommodate its growth.
"We chose Advent Office as our technology platform in order to achieve a Straight-Through Processing environment. With Advent we'll be able to integrate our portfolio accounting, trading and client relationship management functions," stated Thomas Plumb, Co-Founder and Vice President of both the advisory and mutual fund divisions of Thompson Plumb. "Utilizing Advent Office will allow us to provide enhanced customer service to our clients while also accelerating our business. With Advent's numerous interfaces, making workflow efficient and its strategic initiatives with well-known firms like SunGard, we think Advent is truly the industry standard."
Among the numerous existing Advent Office clients who chose to take advantage of additional solutions last quarter were Wetherby Asset Management, Eagle Capital Management, North Star Asset Management and YHB Investment Advisors, Inc.
ADVENT OFFICE CONTINUES TO MAKE STRIDES ACROSS EUROPE
Advent Europe, an independent distributor of Advent Software, continues to increase its client base. New clients during the second quarter include, among others, Alpha Bank, the second largest commercial bank in Greece, Mustang AS, an investment advisor and specialist company in Norway, and Jyske Bank, a major investment bank in Denmark. These firms join a growing list of prestigious companies that are taking advantage of Advent Europe's presence and expertise.
ADVENT TRUSTEDNETWORKSM CONTINUES TO ADD PARTICIPANTS
Advent TrustedNetwork, which provides investment advisors with cross-institutional consolidated views of individual investors' portfolios, continued to gain momentum this quarter. Among the new authorized data providers to come on board this quarter were LaSalle National Bank, Investors Bank & Trust, Key Bank, JP Morgan Private Bank, Ameritrade, Cherokee National Trust, Provident Trust Company, North Fork Bank, Hutchins Wheeler & Dittmar, BankIllinois, and Fifth Third.
"The growth of participants on Advent TrustedNetwork reflects the ongoing need in the industry for a secure source of high quality managed and non-managed account information," stated Caswell. "By the end of the third quarter of this year, we expect to have more than 1,000 client firms using our data aggregation services."
HENRY KISSINGER WILL BE KEYNOTE SPEAKER AT ADVENT FALL USER CONFERENCE
Advent is pleased to announce that Dr. Henry Kissinger, former US Secretary of State, will be the Keynote Speaker at the Fall Conference in Washington, DC on September 5-7, 2001. This year's conference offers Advent clients three days of more than 60 industry, technology and product sessions. Advent's 2001 Conferences are designed to connect Advent clients with the technologies and tools they need to succeed. For specific details about the conference or to register to attend, please see Advent's web site at www.advent.com or Advent's client web site at connection.advent.com.
ADVENT SECOND QUARTER CONFERENCE CALL
Advent will be hosting its second quarter conference call at 4:45 Eastern Time today, July 17th . 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 July 24th by calling 973-341-3080, passcode 2695941.
Advent Software, Inc., the leading provider of Enterprise Investment Management solutions, offers stand-alone and client/server software products, data interfaces, and related services that automate and integrate mission-critical functions of investment management organizations. 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, datawarehousing, 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 NPO and other 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 -
Irv H. Lichtenwald - CFO
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107