San Francisco, CA, October 15, 2002 - Advent Software, Inc. (Nasdaq: ADVS) today announced revenue for the third quarter ended September 30, 2002 of $35.1 million, compared to $39.2 million in the same quarter last year. Third quarter revenue was consistent with Advent's revenue estimate announced on October 1, 2002. Net loss for the quarter was $8.3 million or 25 cents per share under Generally Accepted Accounting Principals (GAAP). The quarterly loss includes amortization of intangibles related to prior acquisitions of approximately $2.9 million, purchased in-process research and development related to the recent acquisition of Techfi Corporation of approximately $1.5 million, and a non-cash write off of approximately $2 million associated with Advent’s investment in myCFO. (First Call consensus estimates for the quarter are not reported under GAAP and exclude the after-tax amortization of intangibles, the purchased in-process research and development, and the investment write-off.)
For the nine-month period ended September 30, 2002, net revenues were $123.2 million, from $117.8 million for the first nine months of 2001. Net loss for the same nine-month period was $13.1 million, or 39 cents per share, compared with a net income of $19.2 million, or 55 cents per share for the same period last year.
“Despite our net loss reported under GAAP, we are pleased that our net cash provided by operating activities was approximately $3.6 million during the quarter, as indicated on the Statement of Cash Flows,” stated Irv H. Lichtenwald, Chief Financial Officer of Advent Software.
“While the quarter was a tough one and the current economic environment continues to be difficult, our core strategy and the ultimate needs of our customers have not changed,” stated Peter Caswell, President and Chief Executive Officer of Advent Software. “Our unique franchise and strong financial position allows us to properly invest for the long-term success of our customers and our company.”
ADVENT LAUNCHES ADVENT PACKAGER
Advent Packager™, a solution that automates period-end reporting to investment clients and their related contacts, was launched to the Advent client base in September. Granahan Investment Management, located in Waltham, MA, Joseph Parker & Company, located in Thomasville, GA, and New South Capital Management, Inc., located in Memphis TN, are among the many clients that chose Advent Packager during the quarter. These firms will look to leverage Advent Packager to increase productivity, improve reliability of the statement generation process, and more easily accommodate specialized statement requests.
Deployed as a .Net browser-based application on a relational database, Advent Packager allows firms to collate reports and documents into a consolidated PDF statement or 'Package.' Packages can include Axys reports, Microsoft Word documents, PDF files, and more in a custom statement with page numbers and a table of contents. Firms specify what belongs in each package, who should receive each package, and when.
ADVENT’S INTEGRATION WITH TECHFI BEGINS
With the completion of Advent’s acquisition of Techfi in the beginning of the third quarter, progress has been made in integrating the two companies. Advent immediately began dedicating development and service resources to the Techfi organization. It also has begun integrating Advent Office® components to the Techfi platform, including MyAdvent™, SmartClick™, and more data sources.
The addition of Techfi’s solutions expands Advent’s coverage of solutions for advisors and all levels of broker/dealers – from the new broker building his book, to the top-producer level requiring portfolio management and trading tools. Techfi solutions complement Advent’s current solutions to provide services to a broader range of users in an advisory enterprise.
During the quarter, Techfi signed several clients to its AdvisorMart Institutional™ service, an enterprise-wide, ASP service bureau for large financial institutions, including Intervest International and Questar Capital Corporation. AdvisorMart Institutional provides an enterprise consolidation and reporting platform with portfolio management and relationship management tools.
ADVENT FALL CONFERENCE
Former Vice President Al Gore will be the featured keynote speaker at Advent’s annual fall users’ conference, “Solutions 2002,” in Boston, MA on November 13-15. Twice a year, Advent conferences update investment professionals on industry developments and new technology to help them stay on the leading edge of the investment industry.
ADVENT THIRD QUARTER CONFERENCE CALL
Advent will be hosting its third quarter conference call at 4:45 Eastern Time today, October 15th. 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 October 22nd by calling 973-341-3080, passcode 3521466.
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, 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 -
Irv H. Lichtenwald - CFO
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107