Advent Software Reports Second Quarter Results

Advent Software Reports Second Quarter Results

Company Reports Net Revenues of $44.4 million

SAN FRANCISCO – July 20, 2006 – Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the second quarter ended June 30, 2006.

The Company reported total net revenues for the second quarter of 2006 of $44.4 million, compared with $43.7 million in the first quarter of 2006, and $40.9 million in the same quarter last year.

Total expenses, including cost of revenues, for the second quarter of 2006 were $43.9 million, compared with $42.6 million in the first quarter of 2006, and $41.6 million in the same quarter last year. Expenses for the second and first quarters of 2006 included $3.5 million and $3.2 million, respectively, of stock-based compensation expense due to the January 1, 2006 implementation of SFAS 123(R).

Net income for the second quarter of 2006 was $1.6 million, compared with $3.4 million in the first quarter of 2006. In the second quarter of 2005, the Company reported net income of $3.9 million, which did not include stock-based compensation expense.

Diluted earnings per share in the second quarter of 2006 was $0.05, compared to $0.11 in the previous quarter. Diluted earnings per share in the second quarter of 2005 was $0.13, and did not include the impact of stock-based compensation expense.

Cash, cash equivalents and short-term investments totaled $97.2 million as of June 30, 2006. This compares to $136.5 million at March 31, 2006. Under the terms of the Board-authorized stock repurchase program announced on April 27, 2006, Advent repurchased 1.6 million shares (of the 2.3 million shares authorized) of the Company’s common stock in the second quarter, for a total outlay of $52.8 million. Cash flow from operations in the second quarter of 2006 was approximately $12.1 million, compared with $9.3 million in the first quarter of 2006 and $8.1 million in the second quarter of 2005.

“We are very pleased to report another strong quarter for Advent, which reflects the ongoing strength and momentum of Advent’s core business,” said Stephanie DiMarco, Chief Executive Officer. “The robust demand for our industry-leading solutions has allowed us to expand our customer base while investing for growth and managing our costs – positioning Advent for continued leadership in our market.”


  • Expanding Customer Relationships:  Advent signed 89 customer agreements in the second quarter and saw strong demand for its newest platform solution, Advent Portfolio Exchange®, with 18 clients choosing the solution to manage their investment operations needs, including Aronson + Johnson + Ortiz, The Fiduciary Group and the Bedrock Group. The Company also licensed Geneva®, Advent’s premier global investment accounting and portfolio management software, to 11 new customers representing firms from the hedge fund, prime broker and fund administrator market segments.
  • Continuing Momentum in the Transition to Term:  Demonstrating both the success of the Company’s transition to term licenses and continued acceptance of Advent’s products in the market, Advent signed new term contract bookings in the second quarter totaling $12.9 million with an average term of 3.1 years. This compares with $7.9 million in the first quarter of 2006, marking the highest term bookings quarter since the transition to the term license model began two years ago.
  • Investing in Innovation:  In the second quarter, the Company released Advent Portfolio Exchange® V. 1.5, which offers expanded scalability and enhanced integration features, marking a significant milestone in the on-going maturation of this next-generation platform. The Company also delivered key enhancements to Geneva®, and 70 percent of the client base has either upgraded to or is currently implementing Geneva® 6.0.

“As our second quarter highlights demonstrate, Advent continues to deliver on our commitment to provide and implement superior and reliable products to the market that help our customers better serve their clients,” continued DiMarco. “Going forward, we will continue to execute on our strategy to strengthen and grow our core business – delivering mission-critical software and services that drive success for the investment management community.”

Advent issued the following guidance for Q3 2006:

  • Revenues are projected to be in the range of $44 million to $46 million. There is no change to full year guidance of $180-$185 million, as term license accounting is causing a significant deferral of revenues to future periods.
  • Expenses, including cost of revenues, amortization of developed technology and intangibles and stock-based compensation expense, are projected to be in the range of $43.5 million to $44.5 million.
  • Diluted weighted average shares outstanding will increase by roughly 0.5 percent in the third quarter from the second quarter amount of 31.3 million shares, excluding the impact of any share repurchases.

Advent Software, Inc. will host its Q2 2006 quarterly earnings conference call at 5:00 p.m. Eastern time today. To participate via phone, please dial 888-812-3873 and request conference ID #2969726. If you are unable to listen to the call at this time, a replay will be available through midnight, July 27, 2006, by calling 800-642-1687 and referencing conference ID #2969726. The conference call will also be web-cast live, then archived on the Investor Relations page of

Advent Software, Inc. (, a multi-national firm, has been providing trusted solutions to the world’s leading financial professionals since 1983. Firms in over 60 countries using Advent technology manage investments totaling more than US $12 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.
The forward-looking statements included in this press release, including financial guidance for the third quarter, 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 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.

condensed consolidated balance sheet and statement of operations (PDF)


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

Katherine Calvert, Public Relations
Advent Software, Inc.
(415) 645-1853