Advent Software Reports Fourth Quarter and Full Year Results

Advent Software Reports Fourth Quarter and Full Year Results

San Francisco, CA, Tuesday, January 31, 2006 - Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2005.

RESULTS
Net revenues for the fourth quarter of 2005 were $45.1 million, compared with $43.0 million in the third quarter of 2005, and $41.0 million in the same quarter last year. Total revenues for the year ended December 31, 2005 were $169.0 million, compared with $150.0 million for the year ended December 31, 2004.

Expenses, including cost of revenues, for the fourth quarter of 2005 were $43.1 million, compared with $38.0 million in the third quarter, and $44.1 million in the same quarter last year. Expenses in the fourth quarter of 2005 included $1.7 million in amortization of intangibles. Total expenses, including cost of revenues, for the year ended December 31, 2005 were $162.6 million, compared with $168.1 million for the year ended December 31, 2004.

Interest income and other, net was $1.6 million for fourth quarter of 2005, compared with $977,000 in the third quarter of 2005 and $1.3 million in the fourth quarter of 2004.

Net income for the fourth quarter of 2005 was $3.9 million or $0.12 per diluted share, compared with a net income for the third quarter of $6.2 million or $0.19 per diluted share. The same quarter last year recorded a net loss of $717,000, or $0.02 per diluted share. Net income for the year ended December 31, 2005 was $14.2 million, or $0.44 per diluted share, compared to a net loss of $16.2 million, or $0.49 per diluted share, in 2004.

Cash, cash equivalents and short-term investments totaled $163.4 million as of December 31, 2005. This compares to $146.5 million as of September 30, 2005, and $165.5 million at December 31, 2004. Operating cash flow for the quarter was $12.3 million and $36.7 million for the full year.

PERSPECTIVE
“2005 was an impressive year for Advent, with the introduction of Advent Portfolio Exchange®, the release of new versions of Axys®, Moxy®, Geneva® and Advent Partner®, and the addition of 350 new clients across all our core product areas,” said Stephanie DiMarco, Chief Executive Officer of Advent. “We saw tremendous improvement in the company’s financial performance.  We also made significant progress in transitioning our business model to term pricing, signing a total of $22.8 million in new term license contracts during 2005.  We see this transition accelerating in 2006 and believe it to be extremely important for the long term.”

GUIDANCE
Advent issued the following guidance:

  • Q1 2006 revenues are projected to be in the range of $39 million to $41 million;
  • Full year 2006 revenues are projected to be in the range of $175 million to $180 million. 
  • Q1 2006 expenses, including cost of revenues, are projected to be in the range of $43 million to $45 million;
  • Full year 2006 expenses are projected to be in the range of $177 million and $181 million, including amortization of developed technology and intangibles and stock-based compensation; 
  • Amortization of developed technology included in cost of revenues will be approximately $400,000 in Q1 2006 and total $1 million for full year 2006, and that related to other intangibles will be approximately $1.1 million in Q1 2006 and total $3.7 million for full year 2006;
  • Stock-based compensation expenses will be approximately $3 million in Q1 2006 and $14 million for full year 2006;
  • Interest income will be approximately $1.2 million per quarter in 2006; and
  • Common shares outstanding will increase by roughly 1 percent in the first quarter from the fourth quarter ending share count of 31.1 million shares, excluding the possible effect of any stock repurchases.

INVESTOR CALL
Advent Software, Inc. will host its Q4 2005 year end earnings conference call at 5:00 p.m. Eastern time on Tuesday, January 31, 2006.  To participate via phone, please dial 888-812-3873 and request conference ID #4532692.  If you are unable to listen to the call at this time, a replay will be available through midnight February 7, 2006, by calling 800-642-1687, conference ID # 4532692.  The conference call will also be web-cast live, then archived on the Investor Relations page of www.advent.com.

ABOUT ADVENT
Advent Software, Inc. (www.advent.com), a multi-national firm, has been providing trusted solutions to the world’s leading financial professionals since 1983. Firms in 50 countries using Advent technology manage investments totaling more than US $8 trillion. 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.
 
FORWARD LOOKING STATEMENTS

The forward looking statements included in this press release, including financial guidance for the first quarter and full fiscal year of 2006, which reflect management’s best judgment based on factors currently known, involve risks and uncertainties that could cause actual results to differ materially from our expectations and guidance. These risks and uncertainties include potential fluctuations in results and future growth rates, changes in the length of our sales cycles, the successful development and market acceptance of new products and product enhancements, the impact of initiatives by competitors, continued uncertainties and fluctuations in the financial markets, and other risks detailed in Advent’s filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, as amended, copies of which may be obtained by contacting Advent Software at 415-645-1787, or by visiting Advent’s Investor Relations website at www.advent.com. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

-FINANCIAL HIGHLIGHTS TO FOLLOW-

Condensed Consolidated Balance Sheet and Statement of Operations (PDF)

-FINANCIAL HIGHLIGHTS TO FOLLOW-

Contact:
Graham Smith - Chief Financial Officer
Advent Software
301 Brannan Street
San Francisco  CA  94107
(415) 543-7696