SAN FRANCISCO – July 29, 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 second quarter ended June 30, 2008.
“We are delighted to report that Advent had another outstanding quarter that included record revenue, as well as strong operating cash flow, term license contract value and other bookings,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. “We are seeing tremendous growth internationally and continued demand in the U.S. We are in the midst of another terrific year and believe we are well positioned for future growth and profitability.”
The Company reported record revenue of $64.0 million for the second quarter of 2008, compared to $52.4 million in the second quarter of 2007, a 22% increase.
Income from operations for the second quarter of 2008 was $5.1 million, or 8% of revenue, which represented an increase of 67% compared with $3.0 million, or 6% of revenue, in the second quarter of 2007.
Net income for the second quarter of 2008 was $7.4 million compared to net income of $5.1 million in the second quarter of 2007, a 44% increase.
On a fully diluted basis, earnings per share in the second quarter of 2008 were $0.26 and represent a 43% increase from diluted earnings per share of $0.18 in the second quarter of 2007.
Cash flow from operations in the second quarter of 2008 was $25.8 million, compared with $12.0 million in the second quarter of 2007. Cash and cash equivalents totaled $82.4 million as of June 30, 2008, compared to $58.0 million as of March 31, 2008.
Deferred revenues as of June 30, 2008 were $130.6 million, compared to $122.9 million as of March 31, 2008.
Non-GAAP income from operations for the second quarter of 2008 was $9.4 million, resulting in non-GAAP operating margin of 15%. This represents a 27% increase compared to non-GAAP income from operations of $7.4 million and non-GAAP operating margin of 14% in the second quarter of 2007.
On a non-GAAP basis, net income for the second quarter of 2008 was $6.2 million, or $0.22 per diluted share, which represented an increase of 26% compared with $4.9 million, or $0.18 per diluted share, for the second quarter of 2007.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
SECOND QUARTER HIGHLIGHTS
Advent has also announced that its Chief Financial Officer, Craig Collins, has left the Company. Mr. Collins will spend more time with family and pursue other opportunities. Mr. Collins has made himself available as required to help in any transition. In the interim, Chief Executive Officer Stephanie DiMarco will be responsible for the operations of Advent’s finance department. Jim Cox, Advent’s Vice President and Corporate Controller, has been named Advent’s Principal Accounting Officer.
All 2008 guidance figures shown in the table below represent increases from previous guidance.
Total Revenue ($M) $64-$66 $254-$258
Non-GAAP Operating Margin n/a 15%-17%
Non-GAAP Diluted EPS ($) n/a $0.91-$1.03
GAAP Diluted EPS ($) n/a $0.58-$0.70
Operating Cash Flow ($M) n/a $70 - $73
Please click here to see the tables for the reconciliation between GAAP and non-GAAP financial measures.
Advent Software, Inc. will host its Q2 2008 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q2 2008 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at http://investor.advent.com. To participate via phone, please dial 888-812-3873 and request conference ID #55226469. A replay will be available through midnight, August 5, 2008, by calling 800-642-1687 and referencing conference ID #55226469. The conference call will also be webcast 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. For more information, click here.
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, our growth internationally and demand in the US, 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, Geneva® and Moxy® products; the successful development and market acceptance of new products and product enhancements; continued uncertainties and fluctuations in the financial markets; the Company’s ability to satisfy contractual performance requirements; 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, Geneva and Moxy are registered trademarks of Advent Software, Inc. All other company names or
marks mentioned herein are those of their respective owners.