Press Release

Advent Software Reports First Quarter 2014 Results

Record First Quarter Operating Cash Flow of $20.9 Million, up 21%, and Annualized Recurring Run Rate of $376 Million, up 6%, Compared to The Prior Year.

SAN FRANCISCO – April 28, 2014 – 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, 2014.

“Advent had a strong start to the year,” said Pete Hess, Chief Executive Officer of Advent Software. “We are in a great position with solid profitability and excellent cash flow, and we continue to strengthen our competitive advantage while at the same time committing to further enhance shareholder value.”

FIRST QUARTER 2014 RESULTS

GAAP Results for Continuing Operations
The Company reported quarterly revenue of $96.8 million for the first quarter of 2014, compared to $92.5 million in the first quarter of 2013, a 5% increase.

Operating income for the first quarter of 2014 was $19.3 million, or 20.0% of revenue, compared to $16.2 million or 17.5% of revenue for the first quarter of 2013.

Net income for the first quarter of 2014 was $10.9 million, compared to $12.1 million in the first quarter of 2013. On a fully diluted basis, earnings per share in the first quarter of 2014 were $0.20, compared to $0.23 in the first quarter of 2013. In the first quarter of 2013, Advent benefited from the reinstatement of the federal research credit for 2012 and 2013, yielding a GAAP provisional tax rate of 24%.

Operating cash flow in the first quarter of 2014 was $20.9 million, compared with $17.2 million in the first quarter of 2013.

Cash and cash equivalents totaled $45 million as of March 31, 2014, compared to $34 million as of December 31, 2013. Total outstanding debt as of March 31, 2014 was $295 million compared to $305 million as of December 31, 2013.

Deferred revenue as of March 31, 2014 was $188 million, compared to $177 million as of March 31, 2013.

Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the first quarter of 2014 was $29.2 million, or 30.2% of revenue. This represents an 11% increase compared to $26.4 million in the first quarter of 2013.

On a fully diluted basis, non-GAAP earnings per share were $0.33 in the first quarter of 2014 and represent a 1% increase from $0.32 in the first quarter of 2013.

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

BUSINESS HIGHLIGHTS
  • Quarterly Dividend: Advent’s Board of Directors has approved the payment of a quarterly cash dividend to its shareholders. The quarterly cash dividend payment of $0.13 per common share will be made on July 15, 2014 to shareholders of record as of June 30, 2014.
  • Award-Winning Solutions & Company: Advent's solutions continued to receive industry awards and win honors around the world during the first quarter. In the US, Advent was named “Best CRM System” by Family Wealth Report, and APX was named “Best Technology Platform” by Private Asset Management. Internationally, Advent was named “Best Technology Fund Accounting” by HFM Week European Hedge Fund Services and “Best Portfolio Management Software Provider” and “Best Fund Accounting & Reporting Software Provider” by MENA Fund Manager.
  • Continued Client Success: Advent had a strong first quarter, with a number of existing clients expanding their relationship with Advent, including Schafer Cullen Capital Management, and many new noteworthy clients around the world, including Ashburton Investments, the investment arm of the First Rand Group.

FINANCIAL GUIDANCE    

Advent updates the following financial guidance for the second quarter of 2014. Financial guidance for fiscal year 2014 remains unchanged.

Guidance

Q1 2014

FY 2014

Total Revenue ($M)

$96-$98

$395-$403

GAAP Operating Margin

n/a

21.0%-21.5%

Stock Compensation Expense (% of revenue)

n/a

8%

Amortization of Intangibles (% of revenue)

n/a

2%

Non-GAAP Operating Margin (% of revenue)

n/a

31.0%-31.5%

Operating Cash Flow ($M)

n/a

$105-$115

Capital Expenditures ($M)

n/a

$8-$11

Effective Tax Rate (GAAP)

n/a

35%-40%

Effective Tax Rate (non-GAAP)

n/a

35%

 

INVESTOR CALL 
Advent Software, Inc. will host its Q1 2014 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q1 2014 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 866-700-5192 and request conference ID # 97740378. Telephone replay will be available through midnight May 5, 2014. The replay number for domestic callers is 888-286-8010, and for international callers is 617-801-6888, with the conference ID of # 38169624. The conference call will also be webcast live and then archived on http://investor.advent.com

ABOUT ADVENT 
Over the last 30 years of industry change, our core mission to help our clients focus on their unique strategies and deliver exceptional investor service has never wavered. With unparalleled precision and ahead of the curve solutions, we've helped over 4,300 firms in more than 50 countries - from established global institutions to small start-up practices - to grow their business and thrive. Advent technology helps firms minimize risk, work together seamlessly, and discover new opportunities in a constantly evolving world. Together with our clients, we are shaping the future of investment management. For more information on Advent products visit http://www.advent.com.


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 in the United States of America (GAAP), please see the accompanying tables entitled “Reconciliation of Selected Continuing Operations’ GAAP Measures to Non-GAAP Measures” and “Reconciliation of Projected Continuing Operations’ GAAP Operating Income % to Non-GAAP Operating Income %.”

FORWARD-LOOKING STATEMENTS 
The financial projections under Financial Guidance and any 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. In addition, any declarations of future quarterly dividends and establishment of future record and payment dates may not occur and are subject to the determination of the Advent Board of Directors. These risks and uncertainties include: potential fluctuations in new contract bookings, renewal rates, operating results and future growth rates; continued market acceptance of our 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 declare future dividends; the Company’s ability to satisfy contractual performance requirements 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 2013 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, Advent Software, and the Advent and logo composite are registered trademarks of Advent Software, Inc.

CONTACTS
Media Contact:
Amanda Diamondstein-Cieplinska
Advent Software, Inc.
(415) 645-1668
adiamond@advent.com

Investor Relations Contact:
Justin Ritchie
Advent Software, Inc.
(415) 645-1683
jritchie@advent.com