EX-99.1 3 j9463_ex99d1.htm EX-99.1

Exhibit 99.1

 

Contact:

 

Graham Smith — Chief Financial Officer

 

 

Robin Goodstein — Investor Relations

 

 

Advent Software, Inc.

 

 

301 Brannan Street

 

 

San Francisco, CA 94107

 

 

(415) 543-7696

 

FOR IMMEDIATE RELEASE

Tuesday, April 15, 2003

 

ADVENT SOFTWARE REPORTS FIRST QUARTER RESULTS

 

San Francisco, CA, April 15, 2003 - Advent Software, Inc. (NASDAQ: ADVS) today announced that revenue for the first quarter ended March 31, 2003 was $33 million, compared with $49.2 million in the same quarter of last year.  Net loss for the quarter was $7.5 million or $0.23 cents per share under GAAP, which includes amortization charges for intangibles and restructuring charges.

 

“Our first quarter revenues reflect the current challenging market conditions, and are consistent with our April 3rd announcement,” said Peter Caswell, President and Chief Executive Officer of Advent Software. “During the quarter we significantly reduced our overall expenses, and we ended the quarter with $163.4 million in cash.”

 

“We proudly celebrate our 20th anniversary as an independent software provider to the financial services industry.  Advent’s market leadership is evidenced by our large installed base of customers, our unparalleled track record in innovation and our strong balance sheet.  In 2003 we will continue to invest in product development to further expand Advent’s solutions to enhance our clients’ businesses,” continued Caswell.

 

GENEVA® HAS RECORD QUARTER; INTRODUCED TO GLOBAL ASSET MANAGERS

 

Geneva had a strong quarter, with a record number of new firms, particularly mid-sized hedge funds, choosing to adopt this unique solution.  Through its innovative technical architecture, Geneva delivers sophisticated tools to back offices, allowing more reliable accounting data on a more timely basis at a much lower cost than traditional systems.  Geneva also significantly enhances firms’ straight-through processing (STP) performance by delivering investment accounting data that is accurate from the outset.

 

Among the firms that chose Geneva this quarter was AQR Capital Management LLC.  “Geneva’s integrated general ledger, the breadth of its product coverage and its open and scalable technology platform are what we feel differentiates the product from its competitors,” said Aaron Goldberg, Chief Financial Officer of AQR Capital Management, LLC.  “I’ve used Advent products at other companies I’ve worked at, and feel very confident in the company’s ability to support AQR’s business.”

 

 

The first quarter also marked the launch of Geneva into the global asset management market. These large asset management firms are under pressure to adapt to changing investment strategies while closely managing operating costs, and they spend a large portion of their back office expense in the portfolio accounting function.  Geneva specifically addresses these firms’ needs to realize significant gains in productivity and efficiency.

 

 “We’re very pleased with the progress we made with Geneva in the first quarter, not only in sales, but in the growth of the pipeline,” said Caswell.  “Geneva is becoming the market-leading solution because it helps firms achieve significant operational efficiencies, particularly valuable in today’s tough environment.”

 

LAUNCHES SOLUTION FOR INDEPENDENT BROKER DEALERS

 

In January, Advent launched ‘Advent/Techfi for Broker-Dealers,’ an integrated set of solutions to help firms attract and retain independent advisor representatives and provide those representatives with a choice of leading technology tools to run their businesses.  This set of solutions addresses current key trends, which include an influx of investors seeking professional advice, and advisors competing amidst a crowded financial services market to win the “trusted advisor” relationship with their investor client.

 

‘Advent/Techfi for Broker-Dealers,’ is based on the combined resources of Advent and Techfi Corporation, a wholly owned subsidiary of Advent.  It offers consolidated reporting, performance reporting, portfolio management, compliance, integration with leading third-party applications, and a comprehensive sales and marketing program to assist independent broker-dealers in creating adoption among their representatives.

 

Atlas Brokerage Company L.P. is among the firms to have selected Advent/Techfi for Broker-Dealers in the first quarter.  Tim Gerwing, Chief Technology Officer of Atlas Brokerage said, “This solution will provide a superior and often-requested technology tool to our advisors while enhancing our back office compliance provisions.  We also now have a service that will help us recruit advisors in the future.”

 

“The solution we launched in the first quarter shows the significant progress we’ve made in integrating Techfi and Advent over the past several months,” said Caswell.

 

FIRST QUARTER RESTRUCTURING CHARGE

 

As previously announced, Advent recorded a $3.5 million restructuring charge during the first quarter. This charge is primarily related to reducing excess office facilities and eliminating duplicative functions that resulted from the integration of recent acquisitions.  The restructuring charge includes $2.5 million relating to the consolidation of office space in the New York City area and Melbourne, Australia and $1 million for severance payments to former Advent employees in both locations.

 

ADVENT FIRST QUARTER CONFERENCE CALL

 

Advent will be hosting its first quarter conference call at 5:00 p.m. Eastern time today, April 15, 2003.  To participate via phone, please dial (973) 582-2700.  If you are unable to listen to the call at this time, a replay will be available through April 29th by calling (973) 341-3080, pass code 3851925.  Today’s conference call will also be web-cast live and archived on www.advent.com, and can be found on the Investor Relations page through the ‘Presentations’ link.

 

 

ABOUT ADVENT

 

Advent Software, Inc. (www.advent.com) has been providing trusted solutions to the world’s leading financial professionals since 1983. Firms in 55 countries use Advent technology to 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.

 

The forward looking statements included in this press release, which reflect management’s best judgment based on factors currently known, involve risks and uncertainties.  These risks and uncertainties include potential fluctuations in results and future growth rates, the successful development and market acceptance of new products and product enhancements, continued uncertainties and fluctuations in the financial markets, challenges assimilating acquired entities, 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 TO FOLLOW-

 

 

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

March 31,

2003

 

December 31,

2002

 

 

 

Unaudited

 

 

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash, cash equivalents, and short-term investments

 

$

163,365

 

$

173,829

 

Accounts receivable, net

 

20,953

 

21,470

 

Prepaid expenses and other

 

9,237

 

8,947

 

Income taxes receivable

 

—

 

6,289

 

Deferred income taxes

 

4,740

 

4,714

 

Total current assets

 

198,295

 

215,249

 

Fixed assets, net

 

27,318

 

28,001

 

Other assets, net

 

184,809

 

189,486

 

Total assets

 

$

410,422

 

$

432,736

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,626

 

$

2,637

 

Accrued liabilities

 

14,420

 

13,530

 

Restructuring reserve

 

2,072

 

—

 

Deferred revenues

 

32,951

 

31,918

 

Income taxes payable

 

3,475

 

5,817

 

Total current liabilities

 

55,544

 

53,902

 

Long-term liabilities

 

2,173

 

5,479

 

Total liabilities

 

57,717

 

59,381

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

320

 

329

 

Additional paid-in capital

 

289,114

 

302,649

 

Retained earnings

 

59,905

 

67,385

 

Cumulative other comprehensive income

 

3,366

 

2,992

 

Total stockholders’ equity

 

352,705

 

373,355

 

Total liabilities and stockholders’ equity

 

$

410,422

 

$

432,736

 

 

ADVENT SOFTWARE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2003

 

2002

 

 

 

Unaudited

 

Revenues:

 

 

 

 

 

License and development fees

 

$

8,128

 

$

23,010

 

Maintenance and other recurring

 

21,874

 

21,508

 

Professional services and other

 

3,042

 

4,679

 

Net revenues

 

33,044

 

49,197

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

License and development fees

 

1,554

 

1,782

 

Maintenance and other recurring

 

6,759

 

5,301

 

Professional services and other

 

1,943

 

1,585

 

Total cost of revenues

 

10,256

 

8,668

 

 

 

 

 

 

 

Gross margin

 

22,788

 

40,529

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Sales and marketing

 

13,452

 

15,370

 

Product development

 

8,855

 

9,091

 

General and administrative

 

5,312

 

4,788

 

Amortization of intangibles

 

3,359

 

1,867

 

Restructuring expense

 

3,489

 

—

 

Total operating expenses

 

34,467

 

31,116

 

 

 

 

 

 

 

Income (loss) from operations

 

(11,679

)

9,413

 

 

 

 

 

 

 

Interest income and other expense, net

 

172

 

1,661

 

 

 

 

 

 

 

Income (loss) before income taxes

 

(11,507

)

11,074

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

(4,027

)

3,765

 

 

 

 

 

 

 

Net income (loss)

 

$

(7,480

)

$

7,309

 

 

 

 

 

 

 

Net income (loss) per share data:

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

Net income (loss) per share

 

$

(0.23

)

$

0.21

 

Shares used in per share calculations

 

32,390

 

34,357

 

 

 

 

 

 

 

Diluted:

 

 

 

 

 

Net income (loss) per share

 

$

(0.23

)

$

0.20

 

Shares used in per share calculations

 

32,390

 

37,222

 

 

2

 

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2003

 

2002

 

 

 

Unaudited

 

Cash flows from operating activities:

 

 

 

 

 

Net income (loss)

 

$

(7,480

)

$

7,309

 

 

 

 

 

 

 

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

Depreciation and amortization

 

5,504

 

3,737

 

Non-cash restructuring charge

 

410

 

—

 

Provision for doubtful accounts

 

102

 

1,264

 

Other than temporary loss on investments

 

500

 

900

 

Non-cash stock compensation

 

—

 

75

 

(Gain) loss on investments

 

69

 

(246

)

Deferred income taxes

 

(22

)

(245

)

Other

 

23

 

(483

)

 

 

 

 

 

 

Cash provided by (used in) operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

421

 

1,000

 

Income taxes receivable

 

6,289

 

—

 

Prepaid and other current assets

 

757

 

480

 

Accounts payable

 

(50

)

933

 

Accrued liabilities

 

(317

)

(206

)

Deferred revenues

 

1,027

 

(3,570

)

Income taxes payable

 

(2,349

)

(228

)

Net cash provided by operating activities

 

4,884

 

10,720

 

 

 

 

 

 

 

Cash flows provided by (used in) investing activities:

 

 

 

 

 

Net cash used in acquisitions including payments of net assumed liabilities

 

—

 

(59,963

)

Purchase of short-term marketable securities

 

(32,711

)

(41,088

)

Sales and maturities of short-term marketable securities

 

47,566

 

30,848

 

Acquisition of fixed assets

 

(1,876

)

(1,455

)

Purchases of long-term investments

 

—

 

(7,819

)

Proceeds from sale of long-term investments

 

—

 

1,831

 

Restricted cash in connection with acquisitions

 

—

 

(3,779

)

Net cash provided by (used in) investing activities

 

12,979

 

(81,425

)

 

 

 

 

 

 

Cash flows provided by (used in) financing activities:

 

 

 

 

 

Proceeds from exercise of stock options

 

764

 

7,896

 

Proceeds from issuance and exercise of warrants

 

—

 

2

 

Common stock repurchased

 

(14,309

)

—

 

Repayment of capital leases

 

(60

)

—

 

Net cash provided by (used in) financing activities

 

(13,605

)

7,898

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

165

 

(68

)

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

4,423

 

(62,875

)

Cash and cash equivalents at beginning of period

 

78,906

 

166,794

 

Cash and cash equivalents at end of period

 

83,329

 

103,919

 

 

 

 

 

 

 

Short-term investments

 

80,036

 

131,890

 

Total cash, cash equivalents and short-term investments

 

$

163,365

 

$

235,809

 

 

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