SAN FRANCISCO – April 29, 2008 – Advent Software, Inc. (NASDAQ: ADVS), the award-winning provider of software and services to the investment management industry, announced today its financial results for the first quarter ended March 31, 2008.
"We are very pleased to announce that Advent had a terrific first quarter, marking a great start to the fiscal year," said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. "Headlining our strong financial results was record quarterly revenue of $61.5 million and a 41% increase in term contract value over the prior year. One of the main drivers behind this quarter's solid financials is the success we’ve had with the term license model, and we're thrilled to see the leverage from the model coming through in our reported results."
The Company reported record revenue of $61.5 million for the first quarter of 2008, compared to $48.0 million in the first quarter of 2007, a 28% increase.
Income from operations for the first quarter of 2008 was $3.7 million, or 6% of revenue, compared with a loss from operations of $50,000, or 0.1% of revenue, in the first quarter of 2007.
Net income for the first quarter of 2008 was $2.6 million, compared with net income of $0.4 million for the first quarter of 2007.
On a fully diluted basis, earnings per share in the first quarter of 2008 were $0.09, which compares to diluted earnings per share of $0.02 in the first quarter of 2007.
Cash flow from operations in the first quarter of 2008 was $9.3 million, compared with $13.8 million in the first quarter of 2007. Cash and cash equivalents totaled $58.0 million as of March 31, 2008, compared to $49.6 million as of December 31, 2007.
Deferred revenues as of March 31, 2008 were $122.9 million, compared to $120.3 million as of December 31, 2007.
Non-GAAP income from operations for the first quarter of 2008 was $7.9 million, resulting in non-GAAP operating margin of 13%. This compares to non-GAAP income from operations of $4.3 million and non-GAAP operating margin of 9% in the first quarter of 2007.
On a non-GAAP basis, net income for the first quarter of 2008 was $5.3 million, or $0.19 per diluted share, compared with $3.2 million, or $0.11 per diluted share, for the first quarter of 2007.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
FIRST QUARTER HIGHLIGHTS
|Total Revenue ($M)||
|Non-GAAP Operating Margin||
|Non-GAAP Diluted EPS ($)||
Please refer to the tables for the reconciliation between GAAP and non-GAAP financial measures.
Advent Software, Inc. will host its Q1 2008 quarterly earnings conference call at 5:00 p.m. Eastern time today. A Q1 2008 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 #42993709. A replay will be available through midnight, May 6, 2008, by calling 800-642-1687 and referencing conference ID #42993709. The conference call will also be web-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.
ABOUT NON-GAAP FINANCIAL INFORMATION
This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the accompanying tables entitled “Reconciliation of Selected GAAP Measures to Non-GAAP Measures.”
The financial projections under Financial Guidance and other forward-looking statements included in this presentation reflect management's best judgment based on factors currently known and involve risks and uncertainties; 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 and Geneva® 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 2007 annual report on Form 10-K. 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.
The Advent logo, Advent Portfolio Exchange and Geneva are registered trademarks of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.
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