SAN FRANCISCO – February 3, 2009 – 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, 2008.
“I am very pleased to announce that Advent achieved record financial results for the fourth quarter and full year 2008,” said Stephanie DiMarco, Founder, Chief Executive Officer and Chief Financial Officer of Advent. “Integral to the Company's outstanding financial performance were Advent’s important 2008 strategic achievements, which included strengthening our product portfolio, expanding our global footprint and growing our addressable market. As a result, we head into 2009 with a very solid business foundation.”
Added Ms. DiMarco, “In this uncertain market environment, technology is one of the best levers businesses have to increase operational efficiency. As our results demonstrate, Advent clearly benefits from our strong reputation of delivering innovative, reliable and cost effective solutions aimed at meeting our clients’ critical business needs.”
The Company reported record quarterly revenue of $74.4 million for the fourth quarter of 2008, compared to $59.4 million in the fourth quarter of 2007, representing a 25% increase. Total annual revenues for the year ended December 31, 2008 were a record $264.8 million, a 23% increase over the $215.3 million recorded in 2007.
Income from operations for the fourth quarter of 2008 was $7.2 million, or 10% of revenue, which represented an increase of 104% compared to $3.5 million, or 6% of revenue, in the fourth quarter of 2007. Income from operations for the year ended December 31, 2008 was $20.7 million, or 8% of revenue, which represented an increase of 68% compared to $12.3 million, or 6% of revenue, for 2007.
On a fully diluted basis, earnings per share in the fourth quarter of 2008 were $0.23 and represent a 72% increase from diluted earnings per share of $0.13 in the fourth quarter of 2007. On a fully diluted basis, earnings per share for the year ended December 31, 2008 were $0.68 and represent a 51% increase compared to $0.45 per share for 2007.
Cash flow from operations in the fourth quarter of 2008 was $22.8 million, compared with $24.1 million in the fourth quarter of 2007, a 5% decrease. Cash flow from operations for the year ended December 31, 2008 was a record $77.0 million, which represented an increase of 23% compared to $62.4 million for 2007.
Cash and cash equivalents totaled $48.4 million as of December 31, 2008, compared to $49.6 million as of December 31, 2007. Deferred revenue totaled $153.2 million as of December 31, 2008 compared to $120.3 million as of December 31, 2007. During the fourth quarter of 2008, the Company drew down $25.0 million of debt under its revolving credit facility, resulting in a $25.0 million debt balance as of December 31, 2008.
During the fourth quarter of 2008, the Company repurchased 1.97 million shares of its stock at an average cost of $23.61 per share and, at December 31, 2008, had 1.67 million shares remaining to repurchase under the share repurchase program authorized by the Company’s Board of Directors on October 30, 2008.
Non-GAAP income from operations for the fourth quarter of 2008 was $14.6 million. This represents a 90% increase compared to non-GAAP income from operations of $7.7 million for the fourth quarter of 2007. Non-GAAP income from operations for the year ended December 31, 2008 was $41.9 million, a 44% increase compared to non-GAAP income from operations of $29.1 million for 2007.
Non-GAAP earnings per share were $0.34 in the fourth quarter of 2008 and represent an 88% increase from diluted earnings per share of $0.18 in the fourth quarter of 2007. On a non-GAAP basis, earnings per share were $0.97 for the year ended December 31, 2008, a 40% increase compared to $0.69 per share for 2007.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
FOURTH QUARTER HIGHLIGHTS
Advent announces the following guidance for the first quarter and the fiscal year 2009:
|Total Revenue ($M)||$68 -$70||
|GAAP Operating Margin||
7% - 8%
|Non-GAAP Operating Margin||
15% - $16%
|Operating Cash Flow ($M)||
$77 - $82
|Capital Expenditures ($M)||
$12 - $14
Please click here to view the tables for the reconciliation between GAAP and non-GAAP financial measures.
Advent Software, Inc. will host its Q4 2008 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q4 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 #82169490. A replay will be available through midnight, February 10, 2009, by calling 800-642-1687 and referencing conference ID #82169490. 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. 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, the impact of our 2008 strategic achievements, our ability to expand our US and international market presence, market acceptance of our products, anticipated benefits of our acquisition of Tamale Software, uncertain market conditions and their impact on our business, and the momentum of the business, and other forward-looking statements included in this press release 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 Advent Portfolio Exchange®, 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 the global economy; the Company’s ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Tamale Software, and achieving expected synergies and results; 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 Software, Advent Portfolio Exchange, Axys 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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