San Francisco, January 23, 2001 - Advent Software, Inc. (Nasdaq: ADVS) today announced revenue for the fourth quarter ending December 31, 2000 increased 35% to $40.5 million, from $30.1 million in the same quarter of last year. Net income for the quarter was $8.9 million or 26 cents per share. This compares to $7.0 million or 21 cents per share in the fourth quarter of last year. Net income for the fourth quarter of 1999 included a non-recurring interest and other income gain of $1.2 million.
For the year, net revenues were $134.9 million, from $101.6 million in 1999. Net income for 2000 was $25.8 million or 75 cents per share from $17.4 million or 58 cents per share last year.
Advent completed the quarter with a mix of new companies from all over the world joining its client list, numerous existing clients purchasing additional components of the Advent OfficeT suite, new relationships with technology and service providers designed to expand its core product base, and four new Geneva¸ clients.
"Our results from the fourth quarter exemplify Advent's continued ability to provide investment organizations of all types and sizes with sophisticated technology to meet their changing needs," said Peter Caswell, President and Chief Executive Officer of Advent Software, Inc. "We're extremely pleased to be recognized as a business partner that can anticipate the needs of our clients, and assist them as they grow their organizations."
INVESTMENT FIRMS AROUND THE WORLD SELECT ADVENT OFFICE
Advent received steady interest in its core products last quarter from a variety of firms in all parts of the world.
Gaining new ground with the adoption of Advent Office internationally, Spar Nord Bank in Denmark, The National Bank of New Zealand, and Finansbank SA in Switzerland all have come on board in the fourth quarter, and represent the array of firms that can leverage Advent solutions.
Spar Nord Bank is a Denmark-based bank with more than 60 branches, which caters to high-net-worth individuals and small to medium-sized companies. "We examined the market for an enterprise investment management solution, and ultimately chose Advent because of its flexibility, speed, and efficiency. We were also impressed with Advent's leading Internet solutions. It was very important for us to implement a product suite that continuously will keep us in the very forefront of our rapidly developing market," said Poul Erik Christensen, Head of Markets, Spar Nord Bank.
The National Bank of New Zealand Limited (NBNZ), a wholly owned subsidiary of Lloyds TSB Group, London, will be using Advent Office in its Private Client division.
Among the many US-based firms that selected Advent Office in the fourth quarter were Winslow Capital Management, an investment counselor with more than $800 million in assets under management and Swan Asset Management, a hedge fund manager located in Kennett Square, PA.
Kanaly Trust Company, an institution managing over $1.6 billion, also is new to Advent in the fourth quarter. "After having researched other solutions, we're confident with our choice of Advent Office. It seems to be a good match for our immediate needs and has the flexibility to meet future demands as they occur," said Jeffrey Talley, Chief Investment Officer of Kanaly Trust Company.
A number of Advent's current clients purchased additional components of the Advent Office suite last quarter. One such firm is US Advisor, which helps CPAs expand their practice with new revenue opportunities like financial and business advisory services, while supporting them with best-of-class practice development and management tools. "Advent Office is a key component to our technological backbone, and we are confident that it will be scalable enough to grow with us as we continue to move further into this new area. Our CPA members will be able to concentrate on developing their business advisory services, without having to worry about the underlying technology to support it," said Phil Macken, President and Chief Executive Officer of US Advisor.
ADVENT'S ALLIANCE PROGRAM CONTINUES TO GROW
Advent continued to add to its list of Alliance partners in the fourth quarter, including Multex.com, Inc. and TeamVest Retirement Plan Services (TeamVest RPS). Advent's Alliance Program was developed nearly two years ago to deliver a wide range of products and services to Advent clients through strategic partnerships with the industry's leading providers of software and services. Participants in the program continue to enhance the Advent Office suite and expand on Advent's Enterprise Investment Management vision.
Multex.com, a global provider of investment information and technology solutions to the financial services industry, will make its MultexNET, MultexNET On-Demand, and MultexEXPRESS products available to Advent clients through a direct interface with Advent Office. "We're extremely excited about the potential to tap into Advent's large base of buy-side clients, and we're quite confident that our products will meet their demands for content and technology critical to the financial services industry," said Robert Skea, Vice President of Business Development, Multex.com.
TeamVest RPS is a leading provider of 401k plan outsourcing and sub-advisory services to investment management firms. TeamVest RPS allows investment management firms to offer a turnkey 401k solution and strengthen their expertise in 401k plan administration. As an Advent Alliance partner, TeamVest RPS will provide Advent's financial advisor clients who wish to add 401k plan administration to their list of services with the ability to outsource 401k plan record keeping, investment management, and customer service. The TeamVest RPS solution allows financial advisors to quickly expand the range of services they can provide to their clients, without incurring the large up-front costs associated with starting a new line of business.
ADVENT JOINS FORCES WITH NEW, INNOVATIVE COMPANIES TO EXPAND OFFERINGS
Advent is leveraging its market-leading technology and its large, diverse client base to create new relationships with third-party service providers, adding additional functionality to Advent's current product base in the process. During the past quarter, Advent signed a strategic alliance with Kinexus Corporation, a provider of premium wealth information management services.
Under this agreement, Advent TrustedNetworkSM and Kinexus' Total Wealth Intelligence service will work together supplying investment advisors with the most complete toolset to consolidate investment information among multiple institutions, in order to provide their clients with a single, holistic view of their entire net worth. By combining Advent TrustedNetwork's wide breadth of data providers and portfolio management consolidation platform with Kinexus' data capture and cleansing tools, consolidation and aggregation services and variety of views and data around net worth and holdings, the two companies can now deliver the most complete service for consolidated reporting seen in the industry.
Another new relationship, announced earlier this month, is with FOLIOfn, the creator of the unique FOLIO InvestingSM service. Advent and FOLIOfn entered into a strategic alliance whereby FOLIOfn will be the exclusive provider of FOLIOs (custom baskets of stocks) through Advent Office. FOLIO AdvisorSM (www.folioadvisor.com) is the investment advisor version of FOLIO Investing, which allows investment advisors to easily buy and manage customized stock portfolios for their clients.
"The addition of FOLIOfn and Kinexus to our impressive list of partners is a testament to our desire to offer the most innovative and sophisticated products and services to our clients. We will continue to search out companies that will enhance our product line and offer our clients more and more ways to differentiate their business in the marketplace," said Caswell.
ADVENT HOSTS RECORD NUMBER OF ATTENDEES AT FALL CONFERENCE
Advent Software hosted a record 1,000 financial professionals at the Advent Fall Conference in New York City in November. The Fall Conference was just one event in an expanded conference program last year that included four conferences in the United States, Europe, and Australia.
ADVENT FOURTH QUARTER CONFERENCE CALL
Advent will be hosting its fourth quarter conference call at 4:45 Eastern Time today, January 23rd. The number to dial-in will be 877-692-2137 or 973-628-9554. If you are unable to listen to the call at this time, a replay will be available through January 30th by calling 402-220-2630.
Advent Software, Inc. is a leading provider of Enterprise Investment Management solutions, offering stand-alone and client/server software products, data interfaces, and related services that automate and integrate mission-critical functions of investment management organizations. Advent OfficeT, the industry's first and only Enterprise Investment Management solution, enables investment firms to build a truly client-centric organization. Advent Office is a suite of complementary products used to automate the entire range of investment management functions, including portfolio management, client relationship management, trade order management, datawarehousing, partnership accounting, reconciliation management, and web-based portfolio, performance and analytic reporting. Advent has licensed its products to more than 6,000 financial institutions in 36 countries for use by more than 60,000 concurrent users. The company's common stock is traded on the Nasdaq National Market under the symbol ADVS.
The forward looking statements included in this press release, which reflect management's best judgment based on factors currently known, involve risks and uncertainties including potential fluctuations in results and future growth rates, the successful development and market acceptance of new products and product enhancements, fluctuations in the financial markets, and other risks detailed from time to time in the company's SEC reports, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Advent Software's Investor Relations Department at 415-645-1243 or Advent's Investor Relations website at http://www.advent.com/. Actual results may differ materially.
- FINANCIAL HIGHLIGHTS -
Irv H. Lichtenwald - CFO
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107