San Francisco, CA, October 1, 2002 - Advent Software, Inc. (Nasdaq: ADVS) announces that it expects to generate total revenues of about $35 million to $36 million for the quarter ended September 30, 2002. Total third quarter revenue is expected to be comprised of approximately $9.5 million to $10 million of license revenue, $21 million to $22 million of maintenance and other recurring revenue, and approximately $4.5 million of professional services.
“While we continue to see great interest in the productivity improvements, operational efficiencies and enhanced client service afforded by our products, unfortunately, purchasing decisions and implementations are being delayed across the board,” said Peter M. Caswell, President and Chief Executive Officer of Advent Software.
“Most of our clients generate revenues based on the amount of assets they have under management. With the Dow suffering the worst September performance since 1937 and the worst third quarter performance since 1987, our clients and business partners in the financial services industry have been hit particularly hard during the last six months of this economic downturn. August and September saw additional industry layoffs and various indices hitting multi-year lows beyond those anticipated at the beginning of the quarter, completely reversing the expected early recovery view held earlier in the year,” said Caswell.
“Fortunately, Advent has a unique franchise, great people and products, and a very strong cash position, which allow us to weather the current environment while continuing to prepare our business for the future,” continued Caswell.
“As we are expecting a continued difficult economic environment throughout the remainder of 2002, looking forward to the fourth quarter of 2002, we would expect total revenue to be in the range of $38 million to $40 million, reflecting a slight year-end up-tick in revenue compared to the third quarter,” said Irv H. Lichtenwald, Chief Financial Officer of Advent Software.
On Friday, September 27, 2002, the Harris wealth management group announced that it has reached an agreement to acquire certain assets of myCFO, Inc. Accordingly, Advent will post a one-time non-cash write off of approximately $2 million associated with its investment in myCFO during the third quarter.
“As regularly discussed, Advent from time to time makes investments in private companies as part of our long-term strategy. Most of these investments are small in nature, typically under $2 million in cost. The remaining net book value of such long-term investments accounted for under the cost method at the end of September is approximately $5 million,” continued Lichtenwald. “While these investments bear risk, we believe that they are valuable to our long-term goals.”
Advent will hold a conference call at 5:00 p.m. Eastern Time today, October 1, 2002 to discuss its preliminary third quarter operating results and future revenue outlook. The number to dial-in will be 973-582-2706. If you are unable to listen to the call at this time, a replay will be available through October 8, 2002 by calling 973-341-3080, passcode 3522055.
Advent is scheduled to release its third quarter results of operations on Tuesday, October 15, 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 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 third quarter of fiscal 2002 and our initial estimates of revenues for the fourth 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 and the risk that actual results for the fourth quarter may not meet our current estimates. 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