San Francisco, October 17, 2000 - Advent Software, Inc. (Nasdaq: ADVS) today announced revenue for the third quarter ending September 30, 2000, of $34.1 million, up from $27.0 million in the same quarter last year. (Revenue for the third quarter of 2000 does not include revenue from our semi-annual Fall User Conference since the Fall Conference will occur in the fourth quarter of 2000, while revenue for the third quarter of 1999 included revenue from our Fall User Conference). Net income rose 42% to $7.1 million, or 21 cents per share. This compares with $5.0 million, or 16 cents per share in the prior year period.
For the nine-month period ending September 30, 2000, net revenues were $94.4 million, up from $71.5 million for the first nine months of 1999. Net income was $16.9 million, or 49 cents per share for the nine-month period, compared with $10.5 million, or 36 cents per share for the same period last year.
"We’re extremely pleased to report on another successful quarter," stated Peter Caswell, President and Chief Executive Officer of Advent Software, Inc. "We are particularly pleased with the significant increase of our operating margin, which was 26.2% for the quarter, compared to 23.6% last year. The rise in operating margin reflects the successful expansion of the recurring revenue components of Advent Office™, complementing the continued increase in client acquisition. And as we enter into the final quarter of 2000, our pipeline of prospects, particularly in larger firms, is at its highest level ever."
YODLEE TO JOIN ADVENT TRUSTEDNETWORK
Advent TrustedNetwork, which allows professional financial advisors to provide their clients with online consolidated, cross-institutional reports of their total wealth, continues to gain momentum in the marketplace. After the quarter close, Yodlee, a provider of online personal account aggregation services, signed a letter of intent to join Advent TrustedNetwork as a strategic partner. Under the arrangement, Advent and Yodlee will jointly provide detailed investment and non-investment data to financial institutions, advisers and their clients. The alliance will bring together Advent’s premier investment management data solutions for professionals and Yodlee’s aggregation platform of choice for financial institutions.
LEHMAN BROTHERS AND 10X CHOOSE GENEVA¸
Geneva, Advent’s real-time global portfolio accounting solution, continues to attract multi-faceted investment firms. We are pleased to announce that Lehman Brothers Prime Brokerage Services adopted Geneva earlier this year. During the third quarter, 10x, a new online investment advisor service established by Chris Cooper, founder of Quote.com, also chose Geneva.
"10x’s mission is to offer a new approach to online investing and portfolio management," stated Chris Cooper, Founder and Chief Executive Officer of 10x. "We believe that Geneva’s proven technology is the right technology to assist 10x in this goal. Geneva will take care of the many inevitable back office concerns and allow us to concentrate on growing our business."
"The fourth quarter is also off to a great start as Geneva has been selected by two additional firms, which should contribute to the success Geneva is having this year," commented Caswell. Geneva gives investment professionals the real-time information they require to react quickly and profitably to the complex requirements of the global investment market.
ADVENT OFFICE CONTINUES TO ATTRACT A WIDE VARIETY OF CLIENTS
The creation and adoption of the Internet has been one of the biggest catalysts for change and growth in the investment industry and for Advent, as it has given birth to new types of organizations that find Advent solutions attractive for their businesses. One such firm that signed in the third quarter is EnvestNet Advisory Corp., a new web-based investment management company.
"EnvestNet is gathering a lot of attention in the advisory industry and we are experiencing rapid growth," stated Judson Bergman, Founder and Chief Executive Officer of EnvestNet Advisory Corp. "Adopting Advent Office will not only keep our back office running smoothly, it will allow us to embark on a strategic relationship with Advent and its impressive network of clients and partners. In partnering with Advent, we expect to offer our advisors the best web-based investment management platform available to allow them to build strong relationships with their most valuable high net-worth clients."
Also new to Advent Office is ManagerLink.com, LLC. ManagerLink.com is a unique new company that has developed a network of some of the industry’s top-performing money managers to refer to CPA firms and financial planners, providing an online service that helps individual investors choose money managers and investment vehicles that fit their specific requirements. Through their purchase of Advent Office, ManagerLink.com will be able to provide their clients with daily aggregated performance information from multiple custodians, and a high level of personalized, online account information.
"Our goal is not to be just another company out there looking for business, but to lead the pack. In order to do that we required the leading technology, and Advent is providing us with the edge that we need," said Cary Koontz, Chief Operating Officer of ManagerLink.com.
Advent Office also continued to attract many traditional investment management organizations from around the world in the last three months. These include Associated Investment Management, LLC (a part of Associated Banc-Corp), which manages more than $5 billion, Fenimore Asset Management, an investment counselor in Cobleskill, New York managing more than $600 million, and RJS Financial Management, a CPA firm in Arlington Heights, Illinois. Atlantis Investment Management Ltd. in London, UK, with $950 million in assets under management, and Bank Corluy, located in Antwerp, Belgium, with 2.5 billion Euro in assets under management, are also new Advent Office clients.
ADVENT GOES LIVE WITH ADVENT OUTSOURCE
Advent went live with Advent Outsource in the third quarter, its new service that delivers Advent Office functionality through an application service provider (ASP) model. With Advent Outsource, investment management firms that wish to outsource the management of their portfolio reporting now can leverage the full power of Advent’s portfolio accounting, management, and reporting solution. Firms that choose Advent Outsource will have their client data housed for them, and will be provided with secure access over the Web to their accounts. This solution is particularly useful for firms that do not want to devote resources to maintaining technology operations within the firm.
ADVENT ALLIANCE PROGRAM ADDS FOUR NEW PARTNERS
The Advent Alliance Program added four new partners this quarter, Telemet America, Inc., Financeware.com, Mondial and The Reference, bringing the total number of Advent Alliance Partners to 22.
With the addition of Telemet, a leading provider of real-time and historic market data, Advent Office users will be able to obtain real-time quotes using the Telemet Orion real-time market data service. Financeware.com is a leading provider of Web-based applications for professional financial advisors and investors. Advent will be integrating Advent Office with Financeware.com's probability analysis tools, FinancialPlanAuditors and WealthSimulator.
Mondial and The Reference are firms that offer a wide variety of technology consulting services specific to the financial services marketplace. Mondial creates business value for clients by applying innovative technology solutions and proprietary products with a full life-cycle service philosophy. The Reference also develops world class financial management software and develops enterprise technology solutions. Mondial and The Reference will be delivering a variety of solutions related to Advent’s products including Advent Warehouse™ and Advent TrustedNetwork to name a few.
ADVENT CONFERENCES REACH OUT ACROSS THE WORLD
Advent Europe hosted its first ever user conference in London, England on October 5-6, 2000. In keeping with the Advent’s 2000 conference theme - Challenges and Opportunities for Money Management in the 21st Century – current and potential clients throughout Europe were able to get further education on the investment industry as a whole and receive hands-on Advent Office education and training. Advent Europe is an independent distributor of Advent Software products and services.
Within the three final months of the year, Advent will be hosting two additional conferences. The Advent Fall Conference will take place November 1-3 in New York City and the Advent Australasian Conference will occur in Melbourne, Australia on November 30 and December 1. For specific details about these conferences please see Advent's web site at www.advent.com.
ADVENT THIRD QUARTER CONFERENCE CALL
Advent will be hosting its third quarter conference call at 4:45 Eastern Time today, October 17th. The number to dial-in will be 800-857-2283 or 312-470-0009. There will be a pass code of "Advent Software." If you are unable to listen in, a replay of the call will be available through October 24th by calling 402-220-0378.
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 Office™, 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 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, quarterly reports on Form 10-Q, and prospectus dated June 17, 1999, 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.
Irv H. Lichtenwald - CFO
Robin Goodstein – Inv Relations
Advent Software, Inc.
301 Brannan Street
San Francisco CA 94107