Advent Software Reports First Quarter 2011 Results

Advent Software Reports First Quarter
2011 Results

Revenue of $75 Million and GAAP Operating Profitability of $12 Million

SAN FRANCISCO – April 26, 2011 – 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, 2011.

“I am pleased to report strong first quarter results, reflecting solid global execution and continued demand for our market-leading solutions,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent.  “By staying focused on our strategy -- broadening our product portfolio, expanding our global footprint, and growing our addressable market -- 2011 is off to a great start, and we see strong demand ahead that will continue to drive top-line growth."


GAAP Results for Continuing Operations
The Company reported quarterly revenue from continuing operations of $75.3 million for the first quarter of 2011, compared to $66.7 million in the first quarter of 2010, a 13% increase.
Operating income from continuing operations for the first quarter of 2011 was $11.5 million, or 15% of revenue, up from $7.3 million or 11% of revenue for the first quarter of 2010. 

Net income from continuing operations for the first quarter of 2011 was $7.9 million compared to $4.2 million in the first quarter of 2010, an 86% increase.

On a fully diluted basis, earnings per share from continuing operations in the first quarter of 2011 were $0.14 and represent an 83% increase from diluted earnings per share of $0.08 in the first quarter of 2010. 

Operating cash flow from continuing operations in the first quarter of 2011 was $11.6 million, compared with $12.5 million in the first quarter of 2010, an 8% decrease. Cash, cash equivalents and marketable securities of continuing operations totaled $140.9 million as of March 31, 2011, compared to $152.0 million as of December 31, 2010, a 7% decrease.

Total deferred revenue from continuing operations as of March 31, 2011 were $156.5 million, compared to $154.2 million as of December 31, 2010, a 1% increase from the end of last quarter.

Non-GAAP Results
Non-GAAP operating income from continuing operations for the first quarter of 2011 was $17.7 million, or 23% of revenue. This represents a 39% increase compared to $12.7 million from continuing operations, or 19% of revenue, in the first quarter of 2010. On a fully diluted basis, non-GAAP earnings per share from continuing operations were $0.21 in the first quarter of 2011 and represent a 45% increase from non-GAAP diluted earnings per share of $0.14 in the first quarter of 2010.

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


  • First Quarter Bookings:  The term license and Advent OnDemand® contracts signed in the first quarter of 2011 will contribute $5.1 million in annual revenue once they are fully implemented. 
  • Continued International Demand:  Signaling continued momentum outside of North America, Advent signed new contracts around the world, including Hong Kong, Saudi Arabia, France, Scandinavia, Switzerland and the United Kingdom (UK) in the first quarter.  New clients included United Investment Bank in Dubai and Carmignac Gestion in Paris.  Revenue from international operations accounted for 17% of total revenue in the first quarter of 2011.
  • Acquisition of Syncova:  Advent completed its acquisition of Syncova Solutions Limited, a privately held UK-based company specializing in margin and financing management for hedge funds and prime brokers.  Under the terms of the agreement, Advent acquired all of the outstanding capital stock of Syncova for $25 million.  The completion of the acquisition expands its leadership in the alternative asset management segment with the addition of margin management and financing analysis capabilities to Advent’s market leading Geneva platform. 
  • Recognition of Superior Service Delivery:  Advent earned "Best of the Best" Recognition from the Professional Services Maturity Benchmark report conducted by independent research and consulting firm Service Performance Insight (SPI) Research, whose focus is operational efficiency and effectiveness.  Advent significantly outperformed the benchmark average by excelling in all five service performance categories: Leadership, Finance and Operations, Human Capital Alignment, Service Execution and Client Relationships.
  • Received Final Payment for MicroEdge Divestiture:  In connection with the sale of Advent’s MicroEdge subsidiary in the fourth quarter of 2009, Advent received the final payment of $3 million, which was released from escrow.  This receipt was recorded in Advent’s discontinued operations’ results in the first quarter of 2011.

Advent updates the following financial guidance for the second quarter and fiscal year 2011:


Q2 2011

FY 2011

Total Revenue ($M)   



GAAP Operating Margin



Amortization of Intangibles

(% of revenue)       



Stock Compensation Expense (% of revenue)



Non-GAAP Operating Margin



Operating Cash Flow ($M)



Capital Expenditures ($M)



Click here to view the comprehensive Q1.11 financial statements.

Advent Software, Inc. will host its Q1 2011 quarterly earnings conference call at 5:00 p.m. Eastern time today.  The Q1 2011 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at  To participate via phone, please dial 888-268-4176 and request conference ID #61339775.  A replay will be available through midnight, May 3, 2011, by calling 888-286-8010 and referencing conference ID #82499618.  The conference call will also be webcast live and then archived on
Advent Software, Inc. (, 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
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, and statements regarding our revenue growth, market acceptance and demand for our products that will drive top line growth, international expansion, synergies related to our acquisition of Syncova Solutions Limited, 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; uncertainties and fluctuations in the financial markets; the Company’s ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Syncova Solutions Limited, 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 2010 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, Advent OnDemand, Geneva and Moxy are registered trademarks of Advent Software, Inc.  All other company names or marks mentioned herein are those of their respective owners.


Media Contact:

Smita Topolski
Advent Software, Inc.
(415) 645-1668

Investor Relations Contact:
Heidi Flaherty
Advent Software, Inc.
(415) 645-1145