San Francisco, CA, July 1, 2002 - Advent Software, Inc., (Nasdaq: ADVS), announces that it expects to generate revenues of about $38 million to $39 million for the quarter ended June 30, 2002, down from previous expectations of about $48 million.
“Although Advent has historically weathered the economic slowdowns that have plagued other financial services and high technology firms, a confluence of events in the last half of June resulted in our missing our total revenue projections by around 19%,” said Peter M. Caswell, President and Chief Executive Officer of Advent Software.
“The unexpected delay in the closing of our TechFi acquisition has added additional stress on the organization and management distraction during the critical final two weeks of the quarter. Although we are confident in the demand for Advent’s products and services, we ran out of runway to negotiate and close everything forecasted by quarter end,” added Caswell.
“We expect license revenue to come in around $12 million. This shortfall is principally caused by our receiving news that several very large deals, which were expected to close the last week of June, were being delayed,” said Irv H. Lichtenwald, Chief Financial Officer of Advent Software.
“Our maintenance and other recurring revenue will come in slightly under $22 million or about $1 million short of our previous expectations, while our professional services revenue should come in fairly close to our previous expectations of approximately $5 million,” continued Lichtenwald.
“Advent has amazing people and products. Over the past 25 quarters, since going public in November 1995, Advent has done a good job of managing our growth in a measured fashion so as to not get ahead of ourselves. We seem to have taken on too much during the second quarter and will work to get things back to our historical track record immediately. As part of that effort I am pleased to announce that our Chief Financial Officer, Irv H. Lichtenwald, has agreed to indefinitely delay his retirement which was originally scheduled to commence in August,” concluded Caswell.
Separately, the company announced that its Board of Directors has authorized an expansion of its existing common stock repurchase program by an additional 2 million shares.
The purchases may be made, from time to time, on the open market or in privately negotiated transactions and will be funded from available working capital. The number of shares to be purchased and the timing of the purchases will be based on the level of cash balances, general business conditions and other factors, including alternative investment opportunities.
As of March 31, 2002, Advent had approximately 34.7 million common shares outstanding with cash balances in excess of $235 million.
Advent will hold a conference call at 5:00 p.m. Eastern Time today, July 1, 2002. The number to dial-in will be 800-473-6123 or 973-582-2706. If you are unable to listen to the call at this time, a replay will be available through July 8, 2002 by calling 973-341-3080, pass code 3367664.
Advent is scheduled to release its second quarter results of operations on Tuesday, July 16, 2002 after the market closes.
Advent Software, Inc. has been providing trusted solutions to the worlds’ leading professional money managers since 1983. Advent’s quality software, data, services and tools enable managers to improve service and communication to their clients, allowing them to grow their business while controlling costs. Advent Office®, the industry’s first and only Enterprise Investment Management solution, enables investment firms to build a truly client-centric organization. Advent Office is a suite of complementary products used to automate the entire range of investment management functions, including portfolio management, client relationship management, trade order management, datawarehousing, partnership accounting, reconciliation management, and web-based portfolio, performance and analytic reporting. Advent has licensed its products to more than 6,500 financial institutions in 55 countries for use by more than 60,000 concurrent users. The company’s common stock is traded on the Nasdaq National Market under the symbol ADVS.
This release contains forward-looking statements about our expected net revenues for the second quarter of fiscal 2002. These statements are subject to risks and uncertainties, including potential discrepancies between management’s initial estimates and the final revenues for the quarter. Further risks are detailed from time to time in Advent’s SEC reports, including its Form 10-K Report for 2001 and Form 10-Q filings.
Irv H. Lichtenwald - CFO
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107