Advent Software Achieves Record Revenues of $55.5 Million in Third Quarter

Advent Software Achieves Record Revenues of $55.5 Million in Third Quarter

Advent Also Announces Record Term Contract Bookings of $18.3 Million

SAN FRANCISCO – October 24, 2007 – Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the third quarter ended September 30, 2007.
 
“We are very excited to announce record revenues and record term contract bookings in the third quarter, as well as our most successful client conference to date, where we launched major upgrades to our two flagship portfolio accounting platforms, Advent Portfolio Exchange® and Geneva®,” said Stephanie DiMarco, Founder and Chief Executive Officer.  “Our outstanding results this quarter demonstrate the significant momentum we see across every facet of our business, giving us continued confidence in Advent’s long-term success.”
 
RESULTS
The Company reported total net revenues of $55.5 million for the third quarter of 2007, up 21% year over year and compared with $45.9 million in the third quarter of 2006.
 
Total expenses for the third quarter of 2007, including cost of revenues, were $49.8 million, compared with $45.5 million in the third quarter of 2006.
 
Income from operations for the third quarter of 2007 was $5.8 million, or 10% of revenue, compared with $328,000 in the third quarter of 2006.
 
Net income for the third quarter of 2007 was $3.3 million, compared with net income of $952,000 for the third quarter of 2006. 
 
Diluted earnings per share in the third quarter of 2007 were $0.12, which compares to diluted earnings per share of $0.03 in the third quarter of 2006.  Cash and cash equivalents totaled $42.8 million as of September 30, 2007, which compares to $60.9 million, including short-term investments, as of September 30, 2006. 
 
Cash flow from operations in the third quarter of 2007 was approximately $12.4 million, compared with $10.4 million in the third quarter of 2006.
 
THIRD QUARTER HIGHLIGHTS
  • Record Term Contract Bookings:  Advent achieved record term contract bookings of $18.3 million, with an average term of 3.6 years.  Year-to-date, total term contract bookings are up 44%.
  • Product Investment and Innovation:  Advent launched major upgrades to its two flagship portfolio accounting platforms, Advent Portfolio Exchange® (APX) and Geneva®.  APX 2.0 includes performance analytics, a powerful new component which takes APX to an even higher level.  Geneva® 7.0 includes a completely updated user experience, enhanced data access and workflow improvements.  Advent is currently preparing for the release of Advent Rules Manager™, the Company’s new trading compliance product.
  • Customer Momentum:  Advent saw continued momentum in customer wins.  APX added 26 customers and Geneva® added 14.  APX customer signings have increased 68% year-to-date; and since the product was launched in late 2005, APX has signed 146 client contracts globally.  Moxy®, Advent’s trade order management solution, and the industry’s most widely used order management system, has reached nearly 800 customers.
  • Annual Advent Conference:  Advent had record-setting attendance at its Annual Client Conference held in Las Vegas.  The event, which took place in September, had nearly 1,200 attendees, an increase of almost 30% from 2006. 
 
FINANCIAL GUIDANCE
For the fourth quarter of 2007, Advent issued the following guidance:
  • Revenues are projected to be in the range of $56 million to $59 million;
  • Expenses are projected to be in the range of $52 million to $53 million.  Included in the expenses are $4.5 million for stock compensation expense and amortization of developed technology and intangibles.
  • Diluted weighted average shares outstanding will increase by approximately 2.5% to 3.0% in the fourth quarter over the third quarter level of 27.4 million shares, excluding the impact of any share repurchases.

For the full year 2007, Advent reiterated guidance as follows:

  • Operating cash flow is projected to be in the range of $54 million to $57 million; and
  • Effective tax rate projected to be in the range of 30% to 35%.
 
For 2008, Advent estimated revenue growth of 14% to 17%.
 
INVESTOR CALL
Advent Software, Inc. will host its Q3 2007 quarterly earnings conference call at 5:00 p.m. Eastern time today.  A Q3 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 #20724805.  A replay will be available through midnight, October 31, 2007, by calling 800-642-1687 and referencing conference ID #20724805.  The conference call will also be web-cast and pod-cast live and then archived on http://investor.advent.com
 
ABOUT ADVENT
Advent Software, Inc. (www.advent.com), a multi-national 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 $14 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. 
 
FORWARD-LOOKING STATEMENTS
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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Media Contact:      
Katherine Calvert  
Advent Software, Inc.
(415) 645-1853 
 
Investor Relations Contact:
Heidi Flaherty
Advent Software, Inc.
(415) 645-1145