Advent Software Reports First Quarter 2010 Results

Advent Software Reports First Quarter 2010 Results 

Company Achieves Quarterly Revenues of $67 Million and First Quarter Annual Contract Value including Advent OnDemandSM of $7.3 Million


SAN FRANCISCO – April 28, 2010 – 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, 2010.

“I’m extremely proud of Advent’s first quarter financial performance.  We achieved very positive results across our business and robust growth in bookings,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent.  “We believe our investment in product development and geographic expansion will continue to drive top line growth around the world.  We remain very confident about the market opportunity ahead of us.”

FIRST QUARTER 2010 RESULTS

GAAP Results for Continuing Operations

The Company reported revenue from continuing operations of $66.7 million for the first quarter of 2010, compared to $66.3 million in the first quarter of 2009, a 1% increase. 
 
Operating income from continuing operations for the first quarter of 2010 was $7.3 million, or 11% of revenue, which represented a decrease of 13% compared with $8.4 million, or 13% of revenue, in the first quarter of 2009. This decrease is reflective of increased sales and marketing efforts and increased facilities costs during the quarter.

Net income from continuing operations for the first quarter of 2010 was $4.2 million compared to net income of $5.4 million in the first quarter of 2009, a 21% decrease.
 
On a fully diluted basis, earnings per share from continuing operations in the first quarter of 2010 were $0.16 and represent a 25% decrease from diluted earnings per share of $0.21 in the first quarter of 2009. 

Operating cash flow from continuing operations in the first quarter of 2010 was $12.5 million, compared with $10.8 million in the first quarter of 2009, a 16% increase.  Cash, cash equivalents and marketable securities of continuing operations totaled $112.0 million as of March 31, 2010, compared to $34.2 million as of March 31, 2009, a 228% increase.

The Company repurchased 249,000 shares in the first quarter of 2010 at an average price of $42.41 per share. 

Total deferred revenues from continuing operations as of March 31, 2010 were $142.2 million, compared to $146.1 million as of December 31, 2009, a decrease of 3%.

Non-GAAP Results for Continuing Operations

Non-GAAP operating income from continuing operations for the first quarter of 2010 was $12.7 million, or 19% of revenue. This represents a 6% decrease compared to $13.5 million from continuing operations, or 20% of revenue, in the first quarter of 2009. Non-GAAP earnings per share from continuing operations were $0.29 in the first quarter of 2010 and represent a 13% decrease from non-GAAP diluted earnings per share of $0.33 in the first quarter of 2009.

The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.

FIRST QUARTER HIGHLIGHTS

  • Strong First Quarter Bookings: The term license and Advent OnDemandSM contracts signed in the first quarter of 2010 will contribute $7.3 million in annual revenue once they are fully implemented. 
  • Launch of Advent Portfolio Exchange® (APX) 3.0:  Advent launched its most extensive release of APX to date.  With this release, Advent continues to set a new standard in comprehensive portfolio management for both asset managers and wealth managers around the globe.
  • Launch of Axys® 3.8:  Advent released Axys® 3.8, an important update to Advent's turnkey portfolio accounting and reporting solution. The latest release of Axys® marks Advent's continued commitment to keeping the platform current as technology and regulatory changes impact its client base.
  • Building Momentum in Asia Pacific (APAC): Advent signed several important deals in Asia in the first quarter.  Advent is committed to the APAC region and continues to expand its presence there as part of its international growth strategy.
  • Acquisition of Goya AS: In the first quarter, Advent acquired Goya, a privately held Norwegian software provider. Through the acquisition, Advent now offers Goya's product, Tradex, a software solution for fund managers and fund distributors in Europe and the Middle East.  By combining Tradex with its other solutions, Advent will have the most competitive solution for the international fund management and distribution market.
  • Ongoing Commitment to Delivering World-Class Service and Support: Advent’s Client Support and Professional Services organizations achieved certification under the prestigious Service Capability & Performance (SCP) Standards.  Advent is the only financial services software firm to achieve certification in both Client Support and Professional Services.

FINANCIAL GUIDANCE    
Advent announces the following financial guidance for the second quarter and fiscal year 2010:

Guidance 

Q2 2010 Continuing Operations

FY 2010 Continuing Operations

Total Revenue ($M)

$67-$69 

 $272-$280

GAAP Operating Margin 

n/a

 11%-12%

Amortization of Intangibles (% of revenue)

n/a

 1%-2%

Stock Compensation Expense (% of revenue)

n/a

 7%-8%

Non-GAAP Operating Margin

n/a

 20%-21%

Operating Cash Flow ($M)

n/a

 $77-$82

Capital Expenditures ($M)

n/a

 $18-$22


Please click here to view the tables for the reconciliation between GAAP and non-GAAP financial measures.

INVESTOR CALL
Advent Software, Inc. will host its Q1 2010 quarterly earnings conference call at 5:00 p.m. Eastern time today.  The Q1 2010 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 866-362-4831 and request conference ID #40677222.  A replay will be available through midnight, May 5, 2010, by calling 888-286-8010 and referencing conference ID #57533430.  The conference call will also be webcast live and then archived on http://investor.advent.com.
 
ABOUT ADVENT
Advent Software, Inc. (www.advent.com), a global firm, has provided trusted solutions to the world’s leading financial professionals since 1983.  Firms in more than 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 organization.  For more information on Advent products, visit our product demo page.
 
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.”

FORWARD-LOOKING STATEMENTS
The financial projections under Financial Guidance, our revenue growth, market acceptance and demand for our products and new product releases, our competitive position, market conditions and their impact on our business, international expansion, 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, release 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 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 2009 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, and Moxy are registered marks and Advent OnDemand is a mark of Advent Software, Inc.  All other company names or marks mentioned herein are those of their respective owners.


Investor Relations Contact:

Heidi Flaherty
Advent Software, Inc.
(415) 645-1145
flaherty@advent.com

Media Contact:     
Jessica Miller      
Advent Software, Inc.    
(415) 645-1668    
jmiller@advent.com