San Francisco, January 25, 2000 - Advent Software, Inc. (Nasdaq: ADVS) today announced revenue for the fourth quarter ending December 31, 1999 increased 39% to $30.1 million, from $21.7 million in the same quarter of last year. Net income rose 91% to $7.0 million or 43 cents per share. This compares to $3.7 million or 28 cents per share, excluding an acquisition related write-off in the fourth quarter of last year.
For the year, net revenues were $101.6 million, up 43% from $71 million in 1998. Net income for 1999 was $17.4 million or $1.15 per share, up 69% from $10.3 million or 79 cents per share last year, excluding an acquisition related write-off.
Both the fourth quarter and full year income for 1999 include a non-recurring interest and other income gain of $1.2 million.
"Advent is extremely pleased to report record earnings at the end of an exciting quarter, which concluded a fast paced and successful year," said Peter Caswell, President and Chief Executive Officer of Advent Software. "We have grown tremendously in the past year, expanding the Advent community by adding new clients of all types and sizes, growing our international presence, and adding new Alliance Partners."
NEW AND EXISTING CLIENTS CONTINUE TO BENEFIT FROM ADVENT OFFICE™
Clients across the spectrum of the financial services industry are choosing Advent Office to automate their operations. "Advent Office brings so much functionality to the table that we not only have success attracting new clients, but we continue to see existing clients add more components as their business grows," said Caswell. "This quarter showed numerous examples of these trends."
Tweedy, Browne Company, LLC, an investment counselor with more than $7 billion in assets under management chose to replace its in-house system with the entire Advent Office suite this past quarter. "After a lot of time and research, we concluded that Advent Office was the only solution that would help us automate each step of our business, from pre-trade compliance through month-end reconciliation," stated Glenn Finn, Chief Operating Officer at Tweedy, Browne. "Our firm was aware that choosing this solution also meant building a long-term partnership. Advent has a positive, well-established reputation in the industry and we believe that we can work together for years to come in order to more efficiently run our business and in turn, better serve our clients.
Cadaret, Grant & Co., Inc., an independent broker dealer, and its sister asset management company, Capital Strategy Group, are both existing Advent clients and have used Axys since 1985. In the fourth quarter, Cadaret, Grant licensed Advent's Browser Reporting for Enterprise Users. "Throughout our relationship with Advent, the company has provided us with the innovations, technical support, and client service that continue to play a significant role in our growth," said Jim Sleeper, Chief Investment Officer of Cadaret, Grant.
"Browser Reporting is a new generation of Internet-enabled technology that will bring us closer to our clients," added Sleeper. "Through our continued partnership with Advent, we look forward to the future expansion of our business." Advent Browser Reporting provides portfolio, performance, and analytical reports through an Internet browser throughout an investment management enterprise--from portfolio managers, to decision-makers, to investors--independent of their physical location.
ADVENT SIGNS TRADE-ROUTING AGREEMENT IN PREPARATION FOR T+1 CHANGE
As the investment industry begins to plan for the trade plus one day (T+1) settlement cycle change scheduled to take place in June 2002, Advent is actively taking steps to prepare its clients’ operations to meet the demands of this industry initiative. "We’re extremely pleased to announce a strategic alliance with a trade order routing network that will provide a straight-through processing solution to all qualified Advent customers and prospects at no cost to the customer," said Caswell. "Utilizing our Moxy FIX product, the STP Alliance Service will be implemented through a single connection from the customer, permitting the customer to electronically place and settle orders for the purchase or sale of securities with any of the clearing brokers accessible through the network." Under this alliance, Advent’s strategic partner will distribute the Moxy FIX product. Further announcements regarding the strategic partnership will be forthcoming in February.
INTERNATIONAL PRESENCE EXPANDS THROUGH GENEVA¸ SIGNINGS AND FURTHER GROWTH OF ADVENT EUROPE
Advent signed two macro hedge funds during the course of the fourth quarter. As announced in December, one of these firms is Ardsley Partners, a macro hedge fund with more than $1 billion in assets under management. The second Geneva deal was with a hedge fund partner affiliated with a large broker dealer. This new client required an application that supported real-time P&L reporting by strategy, diverse instrument coverage, and one with a proven implementation success track record.
Following its formal launch in November, Advent Europe has made strides in signing clients and building relationships with firms overseas. Advent clients in Europe will benefit from the advantages of local expertise and support close to home.
"Advent Europe is off to a tremendous start," stated Inge Five, Managing Director of Advent Europe. "During the fourth quarter, we signed agreements with clients who chose us to locally assist them with anything from implementation management, to technical support, custom reports and custom interfaces. Advent Europe’s goal is to offer the same level of top-quality support to our European clients that the United States office gives existing Advent Office clients, with a ‘close to home’ advantage."
ALLIANCE PROGRAM ADDS FIVE NEW PARTNERS IN THE FOURTH QUARTER
The Advent Alliance program had a very busy and productive quarter, signing five new partners who will provide software and services to enhance the Advent Office suite. New this quarter to the Alliance Program are Zacks Investment Research; Baseline; Vestek; Kinder, Lydenberg, Domini & Co.; and Econoday. The Alliance Program, launched in May of last year, was designed to add additional value to Advent's suite of software by leveraging the expertise of the industry’s leading providers of software and services. By integrating its partners’ solutions, Advent provides its clients with streamlined processing and a reduced workflow, while increasing and extending the value of its customers’ investments in Advent solutions.
SPRING NATIONAL CONFERENCE
Advent's Spring User Conference will be May 8–10 in San Francisco, CA. The theme for the conference is "Challenges and Opportunities: Managing Money in the 21st Century." Twice a year, Advent conferences update investment professionals on industry developments and new technology to help them stay on the leading edge of the investment industry. For specific details about the conference please see Advent's web site at www.advent.com or Advent's client web site at connection.advent.com.
Advent Software, Inc. is a leading provider of Enterprise Investment Management solutions, offering stand-alone and client/server software products, data interfaces, and related services that automate and integrate mission-critical functions of investment management organizations. 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, trade order management, data warehousing, partnership accounting, reconciliation management, and web-based portfolio, performance and analytic reporting. Advent has licensed its products to more than 5,800 financial institutions in 36 countries for use by more than 60,000 concurrent users.
Advent Software, Inc. is the leading provider of Enterprise Investment Management solutions. The company provides a suite of complementary products for the front, middle and back offices of investment management organizations. The company’s common stock is traded on the NASDAQ National Market under the symbol ADVS.
Irv H. Lichtenwald - CFO
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107