Advent Reports Second Quarter Results

Advent Reports Second Quarter Results

San Francisco, July 16, 2002 - Advent Software, Inc. (Nasdaq: ADVS) today announced revenue for the second quarter ending June 30, 2002 was $38.9 million, compared to $41.9 million in the same quarter last year. Second Quarter revenue was consistent with Advent's revenue estimate announced on July 1, 2002. Net loss for the quarter was $12.1 million or 35 cents per share. This compares with a gain of $8.2 million, or 24 cents per share in the prior year period.

For the six months ending June 30, 2002, revenue was $88 million, compared to revenue of $78.6 million for the first six months of 2001. Net loss was $4.8 million or 14 cents per share for the first half of 2002, compared with a gain of $14.2 million or 41 cents per share for the same period last year.

“Despite our net loss reported under Generally Accepted Accounting Principals (GAAP), we are pleased that our net cash provided by operating activities was over $11 million during the quarter, as indicated on the Statement of Cash Flows,” said Irv H. Lichtenwald, Chief Financial Officer of Advent Software. "In order to increase our communication to our shareholders about our cash flow, we will begin providing our Statement of Cash Flows along with our earnings release, rather than waiting for the quarterly SEC filings.”

“We had a number of very important achievements this quarter, despite our disappointment with our financial performance,” stated Peter Caswell, President and Chief Executive Officer of Advent Software. “We continue to be chosen by financial institutions around the world to help automate their businesses and to integrate new solutions.”

GENEVA ADOPTION RATE GROWS

A number of firms chose Geneva® during the second quarter, including Thales Fund Management, LLC, a hedge fund located in New York City managing more than $1 billion, and Fortis Bank.

Fortis Prime Fund Solutions, a division of Fortis Bank, one the largest banks in the Netherlands, chose Geneva as well as Advent Partner® for partnership accounting. Fortis is a recognized leader in global fund administration and will use Geneva to enhance and automate their services.

“We were very methodical in our software search, and ultimately chose Geneva because of its scalability, the breadth of global instrument coverage it offers, and its real-time accounting engine. With the combination of Geneva and Advent Partner, our back-office services will be greatly streamlined, allowing us to provide a higher degree of service to our hedge fund clients,” said Alex Elfers, Managing Director Prime Fund Solutions of Fortis Bank. “We look forward to building a strong relationship with Advent.”

EUROPEAN FIRMS CONTINUE TO CHOOSE ADVENT OFFICE

During the second quarter, several firms throughout Europe selected Advent Office®. Among these firms is AlphaSwiss Asset Management, a quantitative hedge fund manager in Zurich, which is the first hedge fund client of Advent Europe in Switzerland. FIM Securities group also chose Advent Office during the second quarter. FIM, an asset and fund manager with nearly 700 million Euros in assets under management, is Advent’s first client in Finland. Among the Dutch firms to choose Advent Office during the past quarter were the investment management firms Wijs en van Oostveen and Oyens & van Eeghen.

In addition, Folksam, one of the largest insurance companies in Sweden, chose Advent Office as its integrated software solution during the second quarter. “By implementing Advent Office, we will reduce manual work and the risk of making errors as the system prevents us from violating our client’s investment mandates and ensures that we comply with the statutory requirements,” said Håkan Johansson, Chief Executive Officer. “We expect to find ourselves in a position where we will expand our fund management activities and have a larger transaction flow, all without increasing our head count,” he said.

ADVENT CLIENTS CONTINUE TO CHOOSE ADDITONAL SOLUTIONS

Oppenheimer Capital, a part of the Allianz Dresdner Asset Management group, and an existing user of Advent Office, signed on in the second quarter for LatentZero's Sentinel, an extensive pre- and post-trade compliance application, which offers robust compliance rules databases, including securities regulations for all major regulatory jurisdictions in the US, Europe and Asia, rules-based compliance, and benchmark comparisons. Advent offers Sentinel's comprehensive trade compliance functionality through a strategic alliance agreement with LatentZero.

Oppenheimer Capital will use Sentinel in conjunction with Moxy®, Advent's trade order management system. "The combination of Moxy and Sentinel gives us a rigorous pre- and post-trade compliance and trade order management solution," stated Laura Mah, Executive Vice President of Operations for Oppenheimer Capital.

Evergreen Capital Management, LLC, an investment management firm located in Bellevue, WA chose a number of additional products from the Advent Office suite during the second quarter.

“We have been using Advent's solutions since 1996 and have recently tripled our assets under management,” stated David Hay, Principal of Evergreen Capital Management. “Because of this growth, we were looking to streamline our increased workflow, automate our reconciliation and improve our contact management. Since we have been quite pleased with Advent products, Evergreen decided to broaden its use of Advent Office, and we are especially excited to be one of the first users of WealthLine.”

WEALTHLINE IS MADE GENERALLY AVAILABLE

WealthLineSM, an innovative wealth management service that enables financial institutions to collaborate with their clients, gather more assets, and greatly enhance customer relationship management, was released for general availability in the second quarter. Developed in conjunction with Microsoft, WealthLine enables easier and more meaningful communication between advisors and their investor clients, and delivers unparalleled value to firms who wish to offer their clients sophisticated web-based tools to bridge communication between advisors and investors.

WealthLine integrates investment data and financial reports from Advent’s software applications and Advent TrustedNetwork® data service with MSN Money Professional, Microsoft’s Web-based customer communications service built for professional financial advisors. By integrating Advent’s wealth management solutions with MSN Money Professional, WealthLine delivers comprehensive financial advice, consolidated investment reports from multiple institutions, and other information to their clients through a private labeled, secure web site.

Among the numerous firms to choose WealthLine during the second quarter are Enterprise Trust, Midland Family Office, Evergreen Capital Management, Sapere Wealth Management and Sofos Capital, LLC.

“Advent is on a path to become a leader in account aggregation. We chose WealthLine not only for its ability to give us a very convenient and comprehensive form of client communication, but also because the direct feeds into custodians it provides is functionality we truly believe in,” said Michael Leonetti, Chief Executive Officer of Leonetti & Associates. “We have clients all over the country, and using WealthLine is a great way for us to advise them on all of their assets, post financial planning documents and tax returns, and set up a financial hub for them regardless of where they’re located.”

ADVENT OUTSOURCE CONTINUES TO GROW CLIENT BASE

Advent Outsource, an independent service provider that delivers daily data management services to investment firms, continues to attract new clients. Among the many firms to choose Advent Outsource during the second quarter are Crystal Asset Management LLC, an investment manager located in San Francisco, CA and Honolulu, HI, Dominion Investor Services in San Antonio, TX and The Valeo Financial Group in Indianapolis, IN. Utilizing Advent Outsource, investment management firms are able to leverage the full power of Axys, Advent’s portfolio accounting, management and reporting solution, without having to dedicate resources to maintain the system in-house.

ADVENT BUYS BACK SHARES

On May 9th Advent announced plans to buy back shares of its common stock in the open market under a plan previously approved by Advent's board of directors. During 2002, Advent has bought back 1,455,000 shares at an average price of $22.90. On July 2nd, Advent announced that its board of directors authorized the company to extend its existing buy-back plan by an additional 2 million shares.

ADVENT SECOND QUARTER CONFERENCE CALL

Advent will be hosting its second quarter conference call at 4:45 Eastern Time today, July 16th. The number to dial in will be 973-582-2706. If you are unable to listen to the call at this time, a replay will be available through July 23rd by calling 973-341-3080, passcode 3367727.

ABOUT ADVENT

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 55 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 http://www.advent.com. Actual results may differ materially.

- FINANCIAL HIGHLIGHTS -

  • Condensed Consolidated Balance Sheets, Statements of Operations and Condensed Consolidated Statement of Cash Flows (PDF)

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