8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

July 28, 2008

Date of Report (date of earliest event reported)

ADVENT SOFTWARE, INC.

(Exact name of Registrant as specified in its charter)

State of Delaware (State or other jurisdiction of incorporation or organization) 0-26994 (Commission File Number) 94-2901952 (I.R.S. Employer Identification Number)

600 Townsend Street

San Francisco, California 94103

(Address of principal executive offices)

(415) 543-7696

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

ITEM 2.02 Results of Operations and Financial Condition	2
ITEM 5.02(e) Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers	2
ITEM 9.01 Financial Statements and Exhibits	2
SIGNATURES	3
EXHIBIT INDEX	4
EXHIBIT 99.1
EXHIBIT 99.2

ITEM 2.02 Results of Operations and Financial Condition

On July 29, 2008, Advent Software, Inc. (the “Company”) announced its results of operations for the second quarter ended June 30, 2008. A copy of the Company’s press release announcing such results dated July 29, 2008 is attached hereto as Exhibit 99.1. This Current Report on Form 8-K and the attached exhibits are furnished to, but not filed with, the Securities Exchange Commission (“SEC”) and shall not be deemed to be incorporated by reference into any of the Company’s filings with the SEC under the Securities Act of 1933, as amended, or the Exchange Act of 1934, as amended.

ITEM 5.02(e) Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On July 29, 2008, the Company announced that Craig B. Collins, the Company’s Executive Vice President and Chief Financial Officer, will leave the Company effective July 31, 2008. Mr. Collins will spend more time with his family and pursue other opportunities. Mr. Collins has made himself available as required to help in any transition. In connection with such termination of employment, the Company and Mr. Collins have entered into a Separation Agreement dated as of July 28, 2008 which provides for the severance contained in the Company’s Executive Severance Plan. A copy of the agreement will be filed with the Company’s Quarterly Report on Form 10-Q.

In the interim, Stephanie G. DiMarco, Chief Executive Officer, will be responsible for the operations of the Company’s finance department. James S. Cox, Vice President and Corporate Controller, has been named the Company’s Principal Accounting Officer effective immediately.

ITEM 9.01 Financial Statements and Exhibits

     (d) Exhibits

     The following exhibits are furnished as part of this Current Report on Form 8-K.

Exhibit No.	Exhibit Description
99.1	Press release dated July 29, 2008.
99.2	Earnings release presentation dated July 29, 2008.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

ADVENT SOFTWARE, INC.
By:	/s/ Stephanie G. DiMarco
	Stephanie G. DiMarco Chief Executive Officer and President (Principal Executive Officer)

Dated:  July 29, 2008

3

EXHIBIT INDEX

Exhibit No.	Exhibit Description
99.1	Press release dated July 29, 2008.
99.2	Earnings release presentation dated July 29, 2008.

4

EX-99.1

Exhibit 99.1

Advent Software Achieves Record Quarterly Revenue of $64.0 Million, a 22% Increase Over Prior Year

Company Also Announces Strong Quarterly Operating Cash Flow of $25.8 Million

SAN FRANCISCO – July 29, 2008 – Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the second quarter ended June 30, 2008.

“We are delighted to report that Advent had another outstanding quarter that included record revenue, as well as strong operating cash flow, term license contract value and other bookings,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent.  “We are seeing tremendous growth internationally and continued demand in the U.S.  We are in the midst of another terrific year and believe we are well positioned for future growth and profitability.”

GAAP RESULTS

The Company reported record revenue of $64.0 million for the second quarter of 2008, compared to $52.4 million in the second quarter of 2007, a 22% increase.

Income from operations for the second quarter of 2008 was $5.1 million, or 8% of revenue, which represented an increase of 67% compared with $3.0 million, or 6% of revenue, in the second quarter of 2007.

Net income for the second quarter of 2008 was $7.4 million compared to net income of $5.1 million in the second quarter of 2007, a 44% increase.

On a fully diluted basis, earnings per share in the second quarter of 2008 were $0.26 and represent a 43% increase from diluted earnings per share of $0.18 in the second quarter of 2007.

Cash flow from operations in the second quarter of 2008 was $25.8 million, compared with $12.0 million in the second quarter of 2007.  Cash and cash equivalents totaled $82.4 million as of June 30, 2008, compared to $58.0 million as of March 31, 2008.

Deferred revenues as of June 30, 2008 were $130.6 million, compared to $122.9 million as of March 31, 2008.

NON-GAAP RESULTS

Non-GAAP income from operations for the second quarter of 2008 was $9.4 million, resulting in non-GAAP operating margin of 15%. This represents a 27% increase compared to non-GAAP income from operations of $7.4 million and non-GAAP operating margin of 14% in the second quarter of 2007.

On a non-GAAP basis, net income for the second quarter of 2008 was $6.2 million, or $0.22 per diluted share, which represented an increase of 26% compared with $4.9 million, or $0.18 per diluted share, for the second quarter of 2007.

The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.

SECOND QUARTER HIGHLIGHTS

·Operating Cash Flow:  Advent’s operating cash flow was $25.8 million for the second quarter of 2008.  The four quarter trailing growth rate was 40%.  Days sales outstanding (DSO) were 59 days in the second quarter of 2008 versus 67 days during the same period last year.

·TIAA-CREF:Advent was selected by TIAA-CREF, the leading provider of retirement services in the academic, medical and cultural fields, to build an innovative service to address new regulatory challenges faced by 403(b) retirement plan administrators.  The service will leverage Advent’s custodial data infrastructure (ACD) to aggregate data from multiple vendors to help prevent non-compliant transactions before they occur and enable plan providers to verify compliance.

·Term License Growth:  Advent’s term license contract value (TCV), including migrations, was $21.2 million for the second quarter of 2008.  With an average term of 3.1 years, the corresponding annual contract value (ACV) was approximately $6.9 million, an increase of 9% over the same period last year.  When fully implemented, the term license contracts signed in the second quarter will add an additional $6.9 million to annual term license revenue.  The four quarter trailing growth rates for TCV and ACV were 55% and 47%, respectively.  It should be noted the TIAA-CREF contract is for data services, rather than a term license, and as such is not included in term license contract value, however, after meeting certain milestones and acceptance, the expected total value of that contract exceeds the term license contract value reported for the second quarter of 2008.

·Customer Momentum for APX and Geneva®:  Advent saw continued momentum in customer wins for its award-winning portfolio accounting platforms.  The Company sold a second quarter record of 25 Advent Portfolio Exchange® (“APX”) contracts, bringing the total number of APX contracts sold to 237 worldwide.  Advent also sold 12 new Geneva® contracts, bringing the total number of Geneva® contracts sold to 176 worldwide.

Advent has also announced that its Chief Financial Officer, Craig Collins, has left the Company.  Mr. Collins will spend more time with family and pursue other opportunities.  Mr. Collins has made himself available as required to help in any transition. In the interim, Chief Executive Officer Stephanie DiMarco will be responsible for the operations of Advent’s finance department.  Jim Cox, Advent’s Vice President and Corporate Controller, has been named Advent’s Principal Accounting Officer.

FINANCIAL GUIDANCE

All 2008 guidance figures shown in the table below represent increases from previous guidance.

	Q308	FY08
Total Revenue ($M)	$64-$66	$254-$258
Non-GAAP Operating Margin	n/a	15%-17%
Non-GAAP Diluted EPS ($)	n/a	$0.91-$1.03
GAAP Diluted EPS ($)	n/a	$0.58-$0.70
Operating Cash Flow ($M)	n/a	$70 - $73

·The effective tax rate for the full year 2008 remains in the range of 30% to 35%, assuming the R&D tax credit is not renewed by Congress and 35% is used for the Company’s calculations of non-GAAP diluted EPS.

·Diluted weighted average shares outstanding are still expected to increase by approximately 0.5% to 1.0% per quarter, excluding the impact of any potential share repurchase and 0.75% growth in diluted weighted average shares outstanding is used for guidance purposes.

Please refer to the tables at the end of this release for the reconciliation between GAAP and non-GAAP financial measures.

INVESTOR CALL

Advent Software, Inc. will host its Q2 2008 quarterly earnings conference call at 5:00 p.m. Eastern time today.  The Q2 2008 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at http://investor.advent.com.  To participate via phone, please dial 888-812-3873 and request conference ID #55226469.  A replay will be available through midnight, August 5, 2008, by calling 800-642-1687 and referencing conference ID #55226469.  The conference call will also be webcast live and then archived on http://investor.advent.com.

ABOUT ADVENT

Advent Software, Inc. (www.advent.com), a global firm, has provided trusted solutions to the world’s leading financial professionals since 1983.  Firms in 60 countries use Advent technology and manage investments totaling nearly US $18 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.  Advent is the only financial services software company to be awarded the Service Capability and Performance certification for being a world-class support organization.  For more information on Advent products visit http://www.advent.com/about/resources/demos/pr.

ABOUT NON-GAAP FINANCIAL INFORMATION

This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the accompanying tables entitled “Reconciliation of Selected GAAP Measures to Non-GAAP Measures.”

FORWARD-LOOKING STATEMENTS

The financial projections under Financial Guidance, our growth internationally and demand in the US, and other forward-looking statements included in this presentation reflect management’s best judgment based on factors currently known and involve risks and uncertainties; our actual results may differ materially from those discussed here.  These risks and uncertainties include: potential fluctuations in results and future growth rates; continued market acceptance of our APX, Geneva® and Moxy® products; the successful development and market acceptance of new products and product enhancements; continued uncertainties and fluctuations in the financial markets; the Company’s ability to satisfy contractual

performance requirements; and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2007 annual report on Form 10-K.  The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The Advent logo, Advent Portfolio Exchange, Geneva and Moxy are registered trademarks of Advent Software, Inc.  All other company names or marks mentioned herein are those of their respective owners.

# # #

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(GAAP, Unaudited)

	June 30			December 31
	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	82,443		$	49,589
Accounts receivable, net	41,401			47,574
Deferred taxes, current	10,288			10,288
Prepaid expenses and other	19,949			19,577
Total current assets	154,081			127,028
Property and equipment, net	33,558			27,779
Goodwill	108,600			106,520
Other intangibles, net	7,644			9,376
Deferred taxes, long-term	70,980			70,981
Other assets, net	11,122			10,645
Total assets	$	385,985		$	352,329
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	7,417		$	4,382
Accrued liabilities	23,734			29,328
Deferred revenues	124,287			115,398
Income taxes payable	3,065			1,086
Total current liabilities	158,503			150,194
Deferred income taxes	811			998
Deferred revenues, long-term	6,336			4,939
Other long-term liabilities	16,195			16,352
Total liabilities	181,845			172,483
Stockholders’ equity:
Common stock	268			265
Additional paid-in capital	338,843			326,964
Accumulated deficit	(151,695		)	(161,685		)
Accumulated other comprehensive income	16,724			14,302
Total stockholders’ equity	204,140			179,846
Total liabilities and stockholders’ equity	$	385,985		$	352,329

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(GAAP, Unaudited)

	Three Months Ended June 30					Six Months Ended June 30
	2008			2007		2008		2007
Net revenues:
Term license, maintenance and other recurring	$	50,838		$	42,012	$	99,977	$	79,736
Perpetual license fees	5,242			5,689		10,867		11,616
Professional services and other	7,947			4,675		14,656		9,003
Total net revenues	64,027			52,376		125,500		100,355
Cost of revenues (1):
Term license, maintenance and other recurring	11,379			9,048		22,313		18,080
Perpetual license fees	224			219		541		414
Professional services and other	8,519			6,415		16,245		12,288
Amortization of developed technology	732			322		1,454		686
Total cost of revenues	20,854			16,004		40,553		31,468
Gross margin	43,173			36,372		84,947		68,887
Operating expenses (1):
Sales and marketing	15,626			13,985		31,016		26,874
Product development	13,008			10,816		25,898		20,672
General and administrative	9,232			7,837		18,459		16,621
Amortization of other intangibles	242			466		729		940
Restructuring charges	(1		)	227		55		789
Total operating expenses	38,107			33,331		76,157		65,896
Income from operations	5,066			3,041		8,790		2,991
Interest income and other income, net	3,559			3,868		3,786		4,386
Income before income taxes	8,625			6,909		12,576		7,377
Provision for income taxes	1,270			1,814		2,586		1,843
Net income	$	7,355		$	5,095	$	9,990	$	5,534
Net income per share:
Basic	$	0.28		$	0.19	$	0.37	$	0.21
Diluted	$	0.26		$	0.18	$	0.36	$	0.20
Weighted average shares used to compute net income per share:
Basic	26,712			26,519		26,641		26,950
Diluted	28,119			27,754		28,046		28,256

(1) Includes stock-based employee compensation expense as follows:
Cost of term license, maintenance and other recurring revenues	$	323	$	328	$	613	$	575
Cost of professional services and other revenues	258		182		495		357
Total cost of revenues	581		510		1,108		932
Sales and marketing	1,099		1,167		2,137		2,136
Product development	1,009		900		1,880		1,637
General and administrative	1,172		1,005		2,127		2,123
Total operating expenses	3,280		3,072		6,144		5,896
Total stock-based employee compensation expense	$	3,861	$	3,582	$	7,252	$	6,828

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(GAAP, Unaudited)

	Six Months Ended June 30
	2008			2007
Cash flows from operating activities:
Net income	$	9,990		5,534
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	7,252			6,828
Depreciation and amortization	6,220			5,426
Loss on dispositions of fixed assets	2			49
Provision for doubtful accounts	485			51
Provision for (reduction of) sales returns	4			(315		)
Gain on investments	(3,393		)	(4,265		)
Other-than-temporary loss on private equity investment	—			585
Deferred income taxes	(187		)	(132		)
Other	3			(5		)
Effect of statement of operations adjustments	10,386			8,222
Changes in operating assets and liabilities:
Accounts receivable	5,688			2,704
Prepaid and other assets	(571		)	(2,833		)
Accounts payable	3,034			599
Accrued liabilities	(5,870		)	(685		)
Deferred revenues	10,282			10,695
Income taxes payable	2,100			1,556
Effect of changes in operating assets and liabilities	14,663			12,036
Net cash provided by operating activities	35,039			25,792
Cash flows from investing activities:
Net cash used in acquisitions	—			(1,022		)
Purchases of property and equipment	(9,777		)	(5,337		)
Capitalized software development costs	(420		)	(514		)
Proceeds from sale of private equity investments	3,393			11,621
Sales and maturities of marketable securities	—			24,921
Change in restricted cash	(248		)	(359		)
Net cash provided by (used in) investing activities	(7,052		)	29,310
Cash flows from financing activities:
Proceeds from exercises of employee stock options	3,240			13,074
Withholding taxes related to equity award net share settlement	(1,271		)	(33		)
Proceeds from common stock issued under the employee stock purchase plan	2,576			1,829
Repurchase of common stock	—			(91,157		)
Proceeds from long term borrowing	—			25,000
Net cash provided by (used in) financing activities	4,545			(51,287		)
Effect of exchange rate changes on cash and cash equivalents	322			58
Net change in cash and cash equivalents	32,854			3,873
Cash and cash equivalents at beginning of period	49,589			30,187
Cash and cash equivalents at end of period	$	82,443		$	34,060

ADVENT SOFTWARE, INC.

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except per share data)

(Unaudited)

To supplement our condensed consolidated financial statements presented on a GAAP basis, Advent uses non-GAAP measures of operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advent’s underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States. 

	Three Months Ended June 30, 2008
	Gross		Gross	Operating			Operating	Net
	Margin		Margin %	Income			Income %	Income
GAAP	$	43,173	67%	$	5,066		8%	$	7,355
Amortization of acquired developed technology	198			198				198
Amortization of other acquired intangibles	—			242				242
Stock-based compensation - cost of revenues	581			581				581
Stock-based compensation - operating expenses	—			3,280				3,280
Restructuring charges	—			(1		)		(1		)
Equity investment adjustment	—			—				(3,393		)
Income tax adjustment for non-GAAP (1)	—			—				(2,066		)
Non-GAAP	$	43,952	69%	$	9,366		15%	$	6,196
Diluted net income per share
GAAP								$	0.26
Non-GAAP								$	0.22
Shares used to compute diluted net income per share								28,119

	Three Months Ended June 30, 2007
	Gross		Gross	Operating		Operating	Net
	Margin		Margin %	Income		Income %	Income
GAAP	$	36,372	69%	$	3,041	6%	$	5,095
Amortization of acquired developed technology	72			72			72
Amortization of other acquired intangibles	—			466			466
Stock-based compensation - cost of revenues	510			510			510
Stock-based compensation - operating expenses	—			3,072			3,072
Restructuring charges	—			227			227
Equity investment adjustment	—			—			(3,662		)
Income tax adjustment for non-GAAP (1)	—			—			(844		)
Non-GAAP	$	36,954	71%	$	7,388	14%	$	4,936
Diluted net income per share
GAAP							$	0.18
Non-GAAP							$	0.18
Shares used to compute diluted net income per share							27,754

(1) The estimated non-GAAP effective tax rate was 35% for the three months ended June 30, 2008 and 2007, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes.

Advent Software, Inc.

Reconciliation of Projected GAAP Operating Income % and Diluted Earnings Per Share

to Non-GAAP Operating Income % and Diluted Earnings Per Share

(Preliminary and unaudited)

Advent provides projections of non-GAAP measures of operating income and diluted earnings per share, which exclude certain costs, expenses, gains and losses which it believes is appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our projected GAAP results are made with the intent of providing management and investors a more complete understanding of Advent’s underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP projections are among the information management uses as a basis for planning and forecasting of future periods. These presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States.

	Twelve Months Ended December 31, 2008
	Operating Income %					Diluted Earnings Per Share
Projected GAAP	8%		to	10	%	$0.58	to	$0.70
Projected amortization of acquired developed technology
and other acquired intangible asset adjustment				1	%			$0.07
Projected stock based compensation adjustment				6	%			$0.54
Projected restructuring charges adjustment				0	%			$0.00
Projected in-process research and development adjustment				0	%			$0.01
Projected investment activity adjustment				n/a				$(0.12	)
Projected income tax adjustment for non-GAAP (1)				n/a				$(0.17	)
Projected non-GAAP	15	%	to	17	%	$0.91	to	$1.03

(1) The projected estimated non-GAAP effective tax rate is 35% for the twelve months ended December 31, 2008 is 35% and has been used to adjust the projected provision for income taxes for non-GAAP purposes.

EX-99.2

Exhibit 99.2

Advent Software, Inc. Advent Software, Inc. Second Quarter 2008 Earnings Highlights July 29th, 2008 Advent Investor Relations Contact: InvestorRelations@advent.com

2 Forward-Looking Statements The financial projections under “Advent Raises 2008 Guidance (in bold)” and other forward-looking statements included in this presentation reflect management's best judgment based on factors currently known and involve risks and uncertainties; our actual results may differ materially from those discussed here. These risks and uncertainties include: potential fluctuations in results and future growth rates; international growth; domestic demand; continued market acceptance of our Advent Portfolio Exchange®, Geneva® and Moxy® products; the successful development and market acceptance of new products and product enhancements; continued uncertainties and fluctuations in the financial markets; the Company’s ability to satisfy contractual performance requirements; and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2007 annual report on Form 10-K. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

3 Q208 Financial Highlights Metric Q207 Q208 $ +/- % +/- Revenue ($M) $52.4 $64.0 $11.7 22% ACV: Annual term license Contract Value, including migrations ($M) $6.3 $6.9 $0.6 9% Weighted Average Term (years) 2.9 3.1 0.2 5% TCV: Term license Contract Value, including migrations ($M) $18.5 $21.2 $2.7 15% Operating Cash Flow ($M) $12.0 $25.8 $13.8 115%

4 Q208 Business Highlights › New contracts › 12 Geneva® contracts › 25 Advent Portfolio Exchange® contracts › TIAA-CREF data service contract › 92% blended renewal rate for term & perpetual clients › Rate is based on cash collections; reported one quarter in arrears › Rate is consistent with previous 5 quarter range of 90% to 94% › Rate increases by 2 to 9 points when negotiations/payments final › Investment to support growth › Added 15 full-time positions during the second quarter › Hired 8 in implementation services, 4 in sales & marketing, 3 other

5 Quarterly Revenue Trend ($M) $61 $59 $56 $48 $52 $64-$66 $50 $46 $44 $44 $0 $20 $40 $60 $80 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308G Consistent revenue growth from diverse and growing client base “G” represents Guidance provided 7/29/08 $64

6 Term License Growth: Annual Contract Value ($M) 1.4 3.6 3.4 5.5 1.4 5.6 6.3 6.9 1.5 4.3 5.9 3.2 6.7 12.1 $1.7 0.0 5.0 10.0 15.0 20.0 25.0 30.0 2004 2005 2006 2007 1H2008 Q1 ACV Q2 ACV Q3 ACV Q4 ACV $7.5 $20.2 $27.6 $12.4 YTD $12.4M vs. $9.7M for 1H 2007 (+28%)

7 Q208 Revenue Performance ($M) • 14% of revenue was from international in Q208, up 3 points over Q207 • 9% of revenue was from MicroEdge in Q208, down 2 points from Q207 Q208 $ +/- % +/- Term License, Maintenance & Other Recurring Revenue $42.0 $50.8 $8.8 21% Term Revenue $10.1 $15.1 $5.0 49% Perpetual Maintenance $21.3 $22.9 $1.6 8% Other Recurring $10.6 $12.9 $2.3 21% Perpetual License Revenue Fees $5.7 $5.2 ($0.4) (8%) AUA Fee Revenue $1.5 $1.4 ($0.1) (4%) Perpetual License Revenue $4.2 $3.8 ($0.4) (9%) Professional Services & Other Revenue $4.7 $7.9 $3.3 70% Total Revenue $52.4 $64.0 $11.7 22%

8 Q208 P&L Highlights * See reconciliation of GAAP to Non-GAAP measures on slides #12 and #13 Q207 Q208 $ +/- % +/- Total Revenue ($M) $52.4 $64.0 $11.7 22% GAAP Gross Profit ($M) $36.4 $43.2 $6.8 19% GAAP Gross Margin 69% 67% (2 points) (3%) GAAP Income from Operations ($M) $3.0 $5.1 $2.0 67% GAAP Operating Margin 6% 8% 2 points 36% GAAP Net Income ($M) $5.1 $7.4 $2.3 44% GAAP Net Income (%) 10% 11% 1 point 18% GAAP Diluted EPS ($) $0.18 $0.26 $0.08 43% Non-GAAP Income from Operations ($M) * $7.4 $9.4 $2.0 27% Non-GAAP Operating Margin * 14% 15% 1 point 4% Non-GAAP Diluted EPS ($) * $0.18 $0.22 $0.04 24% Headcount 870 997 127 15%

9 Operating Cash Flow Growth ($M) $25.8 $9.3 $24.1 $12.4 $12.0 $12.1 $9.3 $12.3 $15.2 $10.2 $13.8 $0 $10 $20 $30 $40 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Trailing 4 Quarter Growth Rate is 40%

10 Growth in Deferred Revenue ($M) $0 $20 $40 $60 $80 $100 $120 $140 $160 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Other Recurring Term Implementations Term License Perpetual License/Maint. Trailing 4 Quarter Growth Rate is 37%

11 Advent Raises 2008 Guidance (in bold) Guidance Q308 FY08 Total Revenue ($M) $64 - $66 $254 - $258 YoY Revenue Growth 15% - 19% 18% – 20% Non-GAAP Operating Margin * 15% - 17% Non-GAAP EPS ($) * $0.91 - $1.03 GAAP EPS ($) $0.58 - $0.70 Operating Cash Flow ($M) $70 - $73 Capital Expenditures ($M) $15 - $18 Weighted Avg. Shares Outstanding Growth** 0.5% -1.0% per qtr Effective Tax Rate (GAAP)*** 30% – 35% Effective Tax Rate (Non-GAAP) 35% * See reconciliation of GAAP to non-GAAP guidance on slide #13 ** Excluding the impact of any potential share repurchase *** Assuming R&D tax credit is not renewed by Congress

12 Reconciliation of GAAP to Non-GAAP Gross Gross Operating Operating Net Margin Margin % Income Income % Income GAAP 43,173 $ 67% 5,066 $ 8% 7,355 $ Amortization of acquired developed technology 198 198 198 Amortization of other acquired intangibles - 242 242 Stock-based compensation - cost of revenues 581 581 581 Stock-based compensation - operating expenses - 3,280 3,280 Restructuring charges - (1) (1) Equity investment adjustment - - (3,393) Income tax adjustment for non-GAAP (1) - - (2,066) Non-GAAP 43,952 $ 69% 9,366 $ 15% 6,196 $ Diluted net income per share GAAP 0.26 $ Non-GAAP 0.22 $ Shares used to compute diluted net income per share 28,119 Gross Gross Operating Operating Net Margin Margin % Income Income % Income GAAP 36,372 $ 69% 3,041 $ 6% 5,095 $ Amortization of acquired developed technology 72 72 72 Amortization of other acquired intangibles - 466 466 Stock-based compensation - cost of revenues 510 510 510 Stock-based compensation - operating expenses - 3,072 3,072 Restructuring charges - 227 227 Equity investment adjustment - - (3,662) Income tax adjustment for non-GAAP (1) - - (844) Non-GAAP 36,954 $ 71% 7,388 $ 14% 4,936 $ Diluted net income per share GAAP 0.18 $ Non-GAAP 0.18 $ Shares used to compute diluted net income per share 27,754 (1) The estimated non-GAAP effective tax rate was 35% for the three months ended June 30, 2008 and 2007, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes. Three Months Ended June 30, 2007 ADVENT SOFTWARE, INC. RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES (In thousands, except per share data) (Unaudited) To supplement our condensed consolidated financial statements presented on a GAAP basis, Advent uses non-GAAP measures of operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advent’s underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States. Three Months Ended June 30, 2008

13 Reconciliation of GAAP to Non-GAAP Projected GAAP 8% to 10% 0.58 $ to 0.70 $ Projected amortization of acquired developed technology and other acquired intangible asset adjustment 1% $ 0.07 Projected stock based compensation adjustment 6% 0.54 $ Projected restructuring charges adjustment 0% 0.00 $ Projected in-process research and development adjustment 0% 0.01 $ Projected investment activity adjustment n/a (0.12) $ Projected income tax adjustment for non-GAAP (1) n/a (0.17) $ Projected non-GAAP 15% to 17% 0.91 $ to 1.03 $ (1) The projected estimated non-GAAP effective tax rate is 35% for the twelve months ended December 31, 2008 is 35% and has been used to adjust the projected provision for income taxes for non-GAAP purposes. Operating Income % Diluted Earnings Per Share Advent provides projections of non-GAAP measures of operating income and diluted earnings per share, which exclude certain costs, expenses, gains and losses which it believes is appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our projected GAAP results are made with the intent of providing management and investors a more complete understanding of Advent's underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP projections are among the information management uses as a basis for planning and forecasting of future periods. These presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States. Twelve Months Ended December 31, 2008 Advent Software, Inc. Reconciliation of Projected GAAP Operating Income % and Diluted Earnings Per Share to Non-GAAP Operating Income % and Diluted Earnings Per Share (Preliminary and unaudited)