SAN FRANCISCO – July 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 second quarter ended June 30, 2009.
“Advent is pleased to report solid financial results for the second quarter, which included strong quarterly revenue and operating cash flow and record non-GAAP earnings per share,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. “These results reflect the resiliency of our business model, Advent’s broad and innovative portfolio of products, expanding global footprint and disciplined operations. While the market environment in the second quarter was challenging, demand for Advent products continues as companies increasingly look to drive greater operational efficiency and more effectively manage risk.”
Added DiMarco, “With today’s announcement of the planned divestiture of MicroEdge, we intend to increase our focus and resources on our core business to further strengthen Advent’s leadership position.”
The Company reported revenue of $69.5 million for the second quarter of 2009, compared to $64.0 million in the second quarter of 2008, a 9% increase.
Income from operations for the second quarter of 2009 was $8.6 million, or 12% of revenue, and represents an increase of 70% compared to $5.1 million, or 8% of revenue, in the second quarter of 2008.
Net income for the second quarter of 2009 was $8.0 million compared to net income of $7.4 million in the second quarter of 2008, a 9% increase.
On a fully diluted basis, earnings per share in the second quarter of 2009 were $0.31 and represent a 17% increase from diluted earnings per share of $0.26 in the second quarter of 2008.
Cash flow from operations in the second quarter of 2009 was $21.7 million. During the second quarter, the Company repaid the remaining $15 million outstanding under its line of credit. Cash and cash equivalents totaled $47.0 million as of June 30, 2009.
Total deferred revenues were $148.1 million as of June 30, 2009, compared to $147.4 million as of March 31, 2009.
New annual term license contract value was $3.6 million for the second quarter of 2009.
Non-GAAP income from operations for the second quarter of 2009 was $15.1 million, or 22% of revenue. This represents a 61% increase compared to non-GAAP income from operations of $9.4 million, or 15% of revenue, in the second quarter of 2008.
Non-GAAP diluted earnings per share were a record $0.38 in the second quarter of 2009 and represent a 72% increase from non-GAAP diluted earnings per share of $0.22 in the second quarter of 2008.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
SECOND QUARTER HIGHLIGHTS
PENDING DIVESTITURE OF MICROEDGE, INC.
In a separate press release dated today, Advent announced that it has signed a definitive agreement for the sale of its New York-based subsidiary MicroEdge, Inc. to Vista Equity Partners.
Advent announces the following financial guidance for Q3 and FY 2009 taking into consideration the pending divestiture of MicroEdge:
|Total Revenue ($M)||$61-$63||$280-$290||
|Non-GAAP Operating Margin||n/a||
18% - 20%
| Amortization of Intangibles
(% of revenue)
| Stock Compensation Expense
Expense (% of revenue)
6% - 7%
|GAAP Operating Margin||n/a||
|Operating Cash Flow ($M)||n/a||$77-$82||$70-$75|
|Capital Expenditures ($M)||n/a||
Please click here to view the tables for the reconciliation between GAAP and non-GAAP financial measures.
Advent Software, Inc. will host its Q2 2009 quarterly earnings conference call at 5:00 p.m. ET today. The Q2 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 #20349749. A replay will be available through midnight, August 4, 2009, by calling 800-642-1687 and referencing conference ID #20349749. The conference call will also be webcast live and then archived on http://investor.advent.com.
Advent Software, Inc., a global firm, has provided trusted solutions to the world’s financial professionals since 1983. Firms in 60 countries rely on Advent technology to run their mission-critical operations. 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 on Advent products, 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 domestic and international growth, market acceptance and demand for our products and new product releases, the anticipated benefits of our sale of MicroEdge, 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 new contract bookings, renewal rates, operating 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; the ability to consummate the MicroEdge, Inc. disposition 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.
Advent, the Advent logo, Advent Software, Advent Portfolio Exchange, Geneva, Moxy and Tamale RMS are registered trademarks of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.
Investor Relations Contact:
Advent Software, Inc.
Advent Software, Inc.