SAN FRANCISCO – April 28, 2009 – Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the first quarter ended March 31, 2009.
“Advent is pleased to report strong first quarter results, reflecting the resilience of our financial model, our portfolio of market leading products, and our strong global execution capabilities. We believe that the current market environment, while challenging, represents an opportunity for Advent to strengthen our competitive position through investing in product development, expanding our addressable market and extending our footprint with existing and new customers worldwide,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent.
Added Ms. DiMarco, “Advent has a proven track record of providing mission-critical solutions that deliver increased operational efficiency, compliance, transparency and reduced risk. These benefits are important in a good economic environment, and are even more compelling in a difficult one. We believe the market opportunity for Advent is large, and that we will continue to strengthen our leadership position.”
The Company reported revenue of $72.8 million for the first quarter of 2009, compared to $61.5 million in the first quarter of 2008, an 18% increase.
Income from operations for the first quarter of 2009 was $9.9 million, or 14% of revenue, which represented an increase of 165% compared with $3.7 million, or 6% of revenue, in the first quarter of 2008.
Net income for the first quarter of 2009 was $6.2 million compared to net income of $2.6 million in the first quarter of 2008, a 136% increase.
On a fully diluted basis, earnings per share in the first quarter of 2009 were $0.24 and represent a 157% increase from diluted earnings per share of $0.09 in the first quarter of 2008.
Cash flow from operations in the first quarter of 2009 was $13.9 million, compared with $9.3 million in the first quarter of 2008, a 51% increase. Cash and cash equivalents totaled $36.3 million as of March 31, 2009, compared to $48.4 million as of December 31, 2008, a 25% decrease.
The Company repurchased 690,000 shares in the first quarter of 2009 at an average price of $21.13 per share.
The Company repaid $10.0 million on its line of credit in the first quarter of 2009, leaving a $15.0 million balance at the end of the first quarter.
Total deferred revenues as of March 31, 2009 were $147.4 million, compared to $153.2 million as of December 31, 2008, a decrease of 4%.
New annual term license contract value was $3.3 million for the first quarter of 2009.
Non-GAAP earnings per share were a record $0.38 in the first quarter of 2009 and represent a 100% increase from non-GAAP diluted earnings per share of $0.19 in the first quarter of 2008.
Non-GAAP income from operations for the first quarter of 2009 was $15.3 million. This represents a 95% increase compared to non-GAAP income from operations of $7.9 million for the first quarter of 2008.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
FIRST QUARTER HIGHLIGHTS
Advent announces the following Q2 2009 and FY 2009 guidance.
|Total Revenue ($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 Q1 2009 quarterly earnings conference call at 5:00 p.m. ET today. The Q1 2009 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 #95443226. A replay will be available through midnight, May 5, 2009, by calling 800-642-1687 and referencing conference ID #95443226. 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 and services 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 and demand for our products, market acceptance of our products, anticipated benefits of our acquisition of Tamale Software, our competitive position, uncertain market conditions and their impact on our business, and the momentum of the business, 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 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; 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 2008 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, Moxy, Partner and Tamale RMS 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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