SAN FRANCISCO – February 5, 2008 – Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the fourth quarter and full year ended December 31, 2007.
"2007 was a record-breaking year for Advent. Our results in the fourth quarter cap off one of the strongest years in our 25-year history, with record revenue, record bookings, and record new client acquisitions for our leading accounting platforms,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. “The success we achieved last year across all parts of our business gives us an excellent foundation for our next phase of growth.”
Added DiMarco, “As we celebrate our 25th anniversary this year, we enter 2008 with a great deal of momentum. Our market leading position, unique value proposition to customers, and our best of breed software solutions provide us an opportunity to capture an increasing share in this large and growing market. We have a clear opportunity to build on our momentum and extend our leadership as the provider-of-choice for mission-critical software and services to the investment management industry.”
The Company reported record revenue of $59.6 million for the fourth quarter of 2007, compared with $50.2 million in the fourth quarter of 2006. Total revenues for the year ended December 31, 2007 were a record $215.5 million, a 17% increase over the $184.1 million recorded in 2006.
Total expenses, including cost of revenue, for the fourth quarter of 2007 were $55.8 million, compared with $52.4 million in the fourth quarter of 2006. Total expenses, including cost of revenue, for the year ended December 31, 2007 were $202.9 million, compared with $184.4 million in 2006.
Expenses from stock-based compensation, amortization of developed technology and other intangibles, acquired in-process research and development, and restructuring, which are included in total expenses, totaled $4.6 million and $18.0 million for the fourth quarter and the fiscal year 2007, respectively, compared to $8.0 million and $22.4 million during the corresponding periods of 2006, respectively.
Income from operations for the fourth quarter of 2007 was $3.7 million, or 6% of revenue, compared with a loss from operations of $2.2 million, or 4% of revenue, in the fourth quarter of 2006. Income from operations for the year ended December 31, 2007 was $12.5 million, or 6% of revenue, compared to a loss from operations of $0.3 million, or 0% of revenue, for 2006.
Net income for the fourth quarter of 2007 was $4.0 million, compared with net income of $76.6 million for the fourth quarter of 2006, which included a benefit from income taxes of $78.0 million related to the release of a valuation allowance against the company’s deferred tax assets. Net income for the year ended December 31, 2007 was $12.8 million, compared to net income of $82.6 million for 2006.
On a fully diluted basis, earnings per share in the fourth quarter of 2007 were $0.14, which compares to diluted earnings per share of $2.62 in the fourth quarter of 2006, $2.66 of which represented a benefit from income taxes related to the release of the valuation allowance against the company’s deferred tax assets. On a fully diluted basis, earnings per share for the year ended December 31, 2007 was $0.46, compared to $2.70 per diluted share for 2006.
Cash flow from operations in the fourth quarter of 2007 was approximately $24.1 million, compared with $15.2 million in the fourth quarter of 2006. Cash flow from operations for the year ended December 31, 2007 was $62.3 million, a 33% increase over the previous year which was $46.8 million. During the fourth quarter of 2007, the Company paid down $20.0 million of its debt under its revolving credit facility, resulting in a zero balance as of December 31, 2007. Cash and cash equivalents totaled $49.6 million as of December 31, 2007.
Deferred revenues as of December 31, 2007 were $120.2 million, compared with $99.8 million at September 30, 2007, and $85.3 million at December 31, 2006.
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
Advent issued the following guidance for the first quarter and the fiscal year 2008:
Advent Software, Inc. will host its Q4 2007 quarterly earnings conference call at 5:00 p.m. Eastern time today. A Q4 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 #31890822. A replay will be available through midnight, February 12, 2008, by calling 800-642-1687 and referencing conference ID #31890822. 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 global 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 $18 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 Service Capability and Performance certification for being a world-class support organization.
The financial projections under Financial Guidance and other 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, continued market acceptance of our APX, Geneva and Moxy products, 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 and Moxy are registered trademarks and Advent Rules Manager is a mark of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.
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