EX-99.1 2 a05-13314_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Contact:

 

Graham Smith – Chief Financial Officer

 

 

Advent Software, Inc.

 

 

301 Brannan Street

 

 

San Francisco, CA 94107

 

 

(415) 543-7696

 

ADVENT SOFTWARE REPORTS SECOND QUARTER RESULTS

 

Net Revenues Up 14 Percent Year-Over-Year

 

San Francisco, CA, Thursday, July 21, 2005 - Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the second quarter ended June 30, 2005.

 

RESULTS

Net revenues for the second quarter of 2005 were $41.2 million, compared with $39.6 million in the first quarter, and $36.0 million in the same quarter last year.

 

Expenses, including cost of revenues, for the second quarter of 2005 were $41.8 million, compared with $39.7 million in the first quarter, and $45.2 million in the same quarter last year. Expenses in the second quarter included $1.6 million in amortization of intangibles, and a $1.5 million restructuring charge relating to the sub-lease of one floor of the Company’s New York City office space.

 

Net income for the second quarter of 2005 was $3.3 million or $0.10 per diluted share, compared with a net income for the first quarter of $785,000, or $0.02 per diluted share. The same quarter last year recorded a net loss of $9.2 million, or $0.28 per share. Interest and other income includes a $3.6 million gain on the sale of a private equity investment.

 

Cash, cash equivalents and short-term investments totaled $133.8 million as of June 30, 2005. This compares to $131.1 million at March 31, 2005. During the second quarter, Advent repurchased 0.6 million shares of its common stock at a cost of $10.7 million. Operating cash flow for the quarter was $8.1 million.

 

PERSPECTIVE
“I’m pleased to report on a very successful quarter, where we saw our highest year-over-year quarterly revenue growth rate since Q1 2002, our second consecutive quarter of positive earnings per share, our seventh consecutive quarter of positive cash flow, solid expense management, progress on the term pricing transition, new client wins, and successful product launches,” said Stephanie DiMarco, Chief Executive Officer of Advent.

 

GUIDANCE
Advent issued the following guidance:

•                  Q3 2005 revenues are projected to be in the range of $40 million to $42 million;

•                  Full year 2005 revenues are projected to be in the range of $162 million to $165 million;

•                  Q3 2005 expenses, including cost of revenues, are projected to be in the range of $39 million to $40 million;

 


 

•                  Full year 2005 expenses are projected to be in the range of $160 million to $163 million, including amortization of intangibles;

•                  Amortization of intangibles included in cost of revenues will be approximately $600,000 per quarter, and that related to other intangibles will be approximately $1.1 million per quarter;

•                  Common shares outstanding will increase by roughly 1 percent from the second quarter ending share count of 30.4 million, excluding the possible effect of any stock repurchases; and

•                  Assuming the price of our common stock remains unchanged during Q3 2005, weighted average common shares outstanding on a diluted basis for Q3 2005 will be approximately 900,000 shares higher than on a basic basis.

 

INVESTOR CALL
Advent Software, Inc. will host its Q2 2005 conference call at 5:00 p.m. Eastern time on Thursday, July 21, 2005.  To participate via phone, please dial 888-812-3873 and request conference ID #7819224.  If you are unable to listen to the call at this time, a replay will be available through July 28, 2005, by calling 800-642-1687, conference ID # 7819224.  The conference call will also be web-cast live, then archived on www.advent.com, on the Investor Relations page.

 

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 third quarter and full fiscal year of 2005, 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, continued uncertainties and 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, 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-

 


 

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

 

June 30

 

December 31

 

 

 

2005

 

2004

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash, cash equivalents and short-term investments

 

$

133,819

 

$

165,529

 

Accounts receivable, net

 

30,789

 

32,778

 

Prepaid expenses and other

 

10,357

 

10,415

 

 

 

 

 

 

 

Total current assets

 

174,965

 

208,722

 

Property and equipment, net

 

15,988

 

18,432

 

Goodwill

 

95,112

 

99,393

 

Other intangibles, net

 

11,117

 

14,668

 

Other assets, net

 

12,669

 

13,362

 

 

 

 

 

 

 

Total assets

 

$

309,851

 

$

354,577

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,605

 

$

2,825

 

Accrued liabilities

 

17,455

 

17,570

 

Deferred revenues

 

58,713

 

56,405

 

Income taxes payable

 

3,202

 

4,036

 

 

 

 

 

 

 

Total current liabilities

 

81,975

 

80,836

 

Deferred income taxes

 

2,007

 

2,250

 

Other long-term liabilities

 

5,178

 

5,816

 

 

 

 

 

 

 

Total liabilities

 

89,160

 

88,902

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

304

 

327

 

Additional paid-in capital

 

316,898

 

339,995

 

Accumulated deficit

 

(103,763

)

(86,921

)

Accumulated other comprehensive income

 

7,252

 

12,274

 

 

 

 

 

 

 

Total stockholders’ equity

 

220,691

 

265,675

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

309,851

 

$

354,577

 

 


 

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended June 30

 

Six Months Ended June 30

 

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

Net revenues:

 

 

 

 

 

 

 

 

 

License and development fees

 

$

9,635

 

$

8,719

 

$

19,228

 

$

16,727

 

Maintenance and other recurring

 

26,016

 

23,314

 

51,303

 

46,200

 

Professional services and other

 

5,581

 

3,991

 

10,337

 

8,819

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

41,232

 

36,024

 

80,868

 

71,746

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

License and development fees

 

384

 

426

 

640

 

1,020

 

Maintenance and other recurring

 

7,562

 

7,320

 

14,637

 

14,200

 

Professional services and other

 

4,510

 

4,107

 

8,657

 

7,680

 

Amortization of developed technology

 

614

 

1,350

 

1,228

 

2,692

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenues

 

13,070

 

13,203

 

25,162

 

25,592

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

28,162

 

22,821

 

55,706

 

46,154

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

10,474

 

9,276

 

20,546

 

18,069

 

Product development

 

7,811

 

8,501

 

15,767

 

16,353

 

General and administrative

 

7,868

 

6,207

 

16,281

 

12,188

 

Amortization of other intangibles

 

1,020

 

2,060

 

2,067

 

4,084

 

Restructuring charges

 

1,520

 

5,903

 

1,603

 

5,860

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

28,693

 

31,947

 

56,264

 

56,554

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

(531

)

(9,126

)

(558

)

(10,400

)

Interest income and other, net

 

4,712

 

(142

)

5,609

 

(16

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

4,181

 

(9,268

)

5,051

 

(10,416

)

Provision for (benefit from) income taxes

 

906

 

(21

)

991

 

(21

)

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,275

 

$

(9,247

)

$

4,060

 

$

(10,395

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.11

 

$

(0.28

)

$

0.13

 

$

(0.31

)

Diluted

 

$

0.10

 

$

(0.28

)

$

0.13

 

$

(0.31

)

 

 

 

 

 

 

 

 

 

 

Shares used to compute net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

30,522

 

33,179

 

31,267

 

33,122

 

Diluted

 

31,289

 

33,179

 

31,947

 

33,122