8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2011

SS&C Technologies, Inc.
(Exact name of registrant as specified in its charter)

Delaware	000-28430	06-1169696
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

80 Lamberton Road, Windsor, CT	06095
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (860) 298-4500

Not Applicable

(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))

Item 2.02. Results of Operations and Financial Condition

On November 7, 2011, SS&C Technologies Holdings, Inc. (“SS&C Holdings”), a Delaware corporation and the parent company of SS&C Technologies, Inc., announced its financial results for the quarter ended September 30, 2011. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

The following exhibits relating to Item 2.02 shall be deemed to be furnished, and not filed:

99.1 Press Release, issued by SS&C Holdings on November 7, 2011.

SIGNATURE

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 hereunto duly authorized.

	SS&C TECHNOLOGIES, INC.
Date: November 7, 2011	By:	/s/ Patrick J. Pedonti
		Patrick J. Pedonti
		Senior Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release, issued by SS&C Technologies Holdings, Inc. on November 7, 2011

EX-99.1

Exhibit 99.1

For Immediate Release

Contact:
Patrick Pedonti
Chief Financial Officer
Tel: +1-860-298-4738
E-mail: investorrelations@sscinc.com

SS&C Technologies Reports Record Revenue of $94.3 Million, Up 13.6%
Adjusted Diluted EPS of $0.28, up 22%, GAAP Diluted EPS of $0.18, up 38%

WINDSOR, CT — November 7, 2011 — SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment and financial software-enabled services and software, today announced its financial results for the quarter ended September 30, 2011.

“I am very pleased by our top-line revenue growth, in particular, the 17.5 percent increase in software-enabled services,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies Holdings, Inc. “Our record Q3 2011 revenues reinforce our customer-focused strategy as they partner with us to innovate in technology, mobility, and cloud-based services. Today we also launched a radio campaign on Bloomberg to highlight our strong fund administration business.”

Results

The Company reported quarterly revenue of $94.3 million for the third quarter of 2011, compared to $83.0 million in the third quarter of 2010, an increase of 13.6 percent.

GAAP operating income for the third quarter of 2011 was $24.1 million, or 25.5 percent of revenue. This represents a 23.0 percent increase compared to GAAP operating income of $19.6 million and 23.6 percent of revenue in the third quarter of 2010. GAAP net income for the third quarter of 2011 was $14.9 million compared to $9.9 million in the third quarter of 2010, an increase of 51.2 percent.

On a fully diluted GAAP basis, earnings per diluted share in the third quarter of 2011 were up 38.5 percent to $0.18 compared with $0.13 in the third quarter of 2010.

Adjusted operating income (a non-GAAP measure defined in note 2 to the attached Condensed Consolidated Financial Information) in the third quarter of 2011 was $37.6 million, or 39.9 percent of adjusted revenue. This represents a 15.3 percent increase compared to adjusted operating income of $32.7 million and 39.3 percent of adjusted revenue in the third quarter of 2010.

Adjusted net income (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) for the third quarter of 2011 was $22.6 million compared to $17.2 million in 2010’s third quarter, a 31.9 percent increase.

Adjusted diluted earnings per share (a non-GAAP measure defined in note 4 to the attached Condensed Consolidated Financial Information) in the third quarter of 2011 were $0.28 compared to $0.23 in the third quarter of 2010, an increase of 21.7 percent.

Annual Run Rate Basis

Annual Run Rate Basis (ARRB) recurring revenue, defined as the addition of maintenance and software-enabled services revenue, was $82.8 million for the third quarter of 2011, an annual run-rate of $331.4 million. This represents an increase of 14.8 percent from $72.1 million and $288.6 million annual run-rate in the same period in 2010 and an increase of 2.3 percent from Q2 2011’s $81.0 million and $323.8 million annual run-rate. We believe ARRB of our recurring revenue is a good indicator of visibility into future revenue.

Acquisition

In the third quarter of 2011, SS&C acquired Dublin-based BDO Simpson Xavier Fund Administration Services Limited, a company owned by BDO. This company is now known as SS&C Fund Services Ireland Limited. The addition of the regulated, fully staffed and operational office in Dublin provides SS&C entry into the strategically important European regulated funds market, providing support for additional fund structures, including UCITS and QIF funds.

Operating Cash Flow

SS&C ended the quarter with $76.2 million in cash and cash equivalents, and $172.7 million in debt for a net debt balance of $96.5 million. We generated net cash from operating activities of $71.6 million for the nine months ended September 30, 2011, compared to $47.6 million for the same period in 2010, an increase of 50.3 percent.

Guidance

SS&C announces the following financial guidance for the fourth quarter and fiscal year 2011:

Guidance	Q4 2011		FY 2011
Total Revenue ($M)	$	94.0 - $97.5	$	369.0 - $373.0
Adjusted Net Income ($M)	$	22.2 - $23.1	$	85.3 - $86.2
Cash from Operating Activities ($M)		N/A	$	87.0 - $90.0
Capital Expenditures (% of revenue)		N/A		2.1% - 2.3	%

Results of SS&C Technologies, Inc.

Our operating subsidiary, SS&C Technologies, Inc., posted the same revenues and net income for the third quarter of 2011 as the Company.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See the accompanying notes to the attached Condensed Consolidated Financial Information for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C’s Q3 earnings call will take place at 5:00 p.m. eastern time today, November 7, 2011. The call will discuss Q3 2011 results and our guidance and business outlook. Interested parties may dial 877-312-8798 (U.S. and Canada) or 253-237-1193 (International) and request the “SS&C Technologies 2011 Third Quarter Earnings Conference Call,” conference ID #16766822. A replay will be available after 8:00 p.m. eastern time on November 7, 2011, until midnight on November 14, 2011. The dial-in number is 855-859-2056 (U.S. and Canada) 404-537-3406 (International); access code #16766822. The call will also be available for replay on SS&C’s website after November 14, 2011; access: http://investor.ssctech.com/results.cfm.

This press release contains forward-looking statements relating to, among other things, our financial guidance for the fourth quarter of 2011 and full year 2011. Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry, the Company’s ability to finalize large client contracts, fluctuations in customer demand for the Company’s products and services, intensity of competition from application vendors, delays in product development, the Company’s ability to control expenses, terrorist activities, the Company’s ability to integrate acquired businesses, the effect of the acquisitions on customer demand for the Company’s products and services, and those risks described in the Company’s publicly available filings with the Securities and Exchange Commission. The Company cautions investors that it may not update any or all of the foregoing forward-looking statements.

About SS&C Technologies

Celebrating its 25th year, SS&C is a global provider of investment and financial software-enabled services and software focused exclusively on the global financial services industry. Founded in 1986, SS&C has its headquarters in Windsor, Connecticut and offices around the world. More than 5,000 financial services organizations, from the world’s largest to local financial services organizations, manage and account for their investments using SS&C’s products and services. These clients in the aggregate manage over $16 trillion in assets.

Additional information about SS&C (NASDAQ: SSNC) is available at www.ssctech.com.

Follow SS&C on Twitter, Linkedin and Facebook.

SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operation
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2011			2010			2011			2010
Revenues:
Software licenses	$	5,786		$	5,966		$	17,341		$	17,629
Maintenance		19,594			18,294			58,459			54,130
Professional services		5,688			4,896			16,815			15,384
Software-enabled services		63,255			53,847			182,518			155,652
Total revenues		94,323			83,003			275,133			242,795
Cost of revenues:
Software licenses		1,714			1,918			5,089			5,754
Maintenance		8,729			8,224			26,196			24,305
Professional services		3,888			3,625			11,439			10,243
Software-enabled services		32,148			28,570			93,887			82,137
Total cost of revenues		46,479			42,337			136,611			122,439
Gross profit		47,844			40,666			138,522			120,356
Operating expenses:
Selling and marketing		7,308			6,275			21,216			18,910
Research and development		9,328			7,867			26,353			23,486
General and administrative		7,118			6,939			20,861			19,165
Total operating expenses		23,754			21,081			68,430			61,561
Operating income		24,090			19,585			70,092			58,795
Interest expense, net		(3,215	)		(6,743	)		(11,816	)		(23,818	)
Other income, net		348			653			180			653
Loss on extinguishment of debt		—			—			(2,881	)		(5,480	)
Income before income taxes		21,223			13,495			55,575			30,150
Provision for income taxes		6,324			3,641			17,814			6,913
Net income	$	14,899		$	9,854		$	37,761		$	23,237
Basic earnings per share	$	0.19		$	0.14		$	0.50		$	0.34
Basic weighted average number of common shares outstanding		77,315			71,889			76,149			67,919
Diluted earnings per share	$	0.18		$	0.13		$	0.47		$	0.32
Diluted weighted average number of common and common equivalent shares outstanding		80,730			75,441			80,109			71,499

See Notes to Condensed Consolidated Financial Information.

SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	September 30,		December 31,
	2011		2010
ASSETS
Current assets:
Cash and cash equivalents	$	76,175	$	84,843
Accounts receivable, net		44,547		45,531
Prepaid income taxes		7,332		2,242
Deferred income taxes		1,198		1,142
Prepaid expenses and other current assets		6,312		5,932
Total current assets		135,564		139,690
Property and equipment, net		13,750		13,570
Deferred income taxes		627		686
Goodwill		924,835		926,668
Intangible and other assets, net		173,728		195,112
Total assets	$	1,248,504	$	1,275,726
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	1,195	$	1,702
Accounts payable		3,322		3,790
Accrued employee compensation and benefits		14,384		16,854
Other accrued expenses		11,877		11,052
Interest payable		2,609		1,305
Deferred maintenance and other revenue		44,361		41,671
Total current liabilities		77,748		76,374
Long-term debt, net of current portion		171,492		289,092
Other long-term liabilities		13,603		12,343
Deferred income taxes		32,144		40,734
Total liabilities		294,987		418,543
Total stockholders’ equity		953,517		857,183
Total liabilities and stockholders’ equity	$	1,248,504	$	1,275,726

See Notes to Condensed Consolidated Financial Information.

SS&C Technologies Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

	Nine Months Ended
	September 30,			September 30,
	2011			2010
Cash flow from operating activities:
Net income	$	37,761		$	23,237
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		31,482			30,356
Stock-based compensation expense		9,215			9,181
Amortization of loan origination costs		2,223			2,896
Loss (gain) on sale or disposition of property and equipment		11			(1	)
Deferred income taxes		(8,781	)		(12,467	)
Provision for doubtful accounts		788			580
Changes in operating assets and liabilities, excluding effects from acquisitions:
Accounts receivable		581			(2,009	)
Prepaid expenses and other assets		(188	)		80
Accounts payable		(535	)		(2,151	)
Accrued expenses and other liabilities		(1,168	)		90
Income taxes receivable and payable		(2,429	)		(2,392	)
Deferred maintenance and other revenues		2,619			229
Net cash provided by operating activities		71,579			47,629
Cash flow from investing activities:
Additions to property and equipment		(4,437	)		(3,265	)
Proceeds from sale of property and equipment		—			51
Cash paid for business acquisitions, net of cash acquired		(19,863	)		(11,372	)
Additions to capitalized software and other intangibles		(1,264	)		(171	)
Net cash used in investing activities		(25,564	)		(14,757	)
Cash flow from financing activities:
Repayment of debt		(118,210	)		(107,670	)
Proceeds from common stock issuance, net		51,971			134,613
Proceeds from exercise of stock options		7,034			5,880
Purchase of common stock for treasury		—			(1,169	)
Income tax benefit related to exercise of stock options		4,889			3,453
Net cash (used in) provided by financing activities		(54,316	)		35,107
Effect of exchange rate changes on cash and cash equivalents		(367	)		(59	)
Net (decrease) increase in cash and cash equivalents		(8,668	)		67,920
Cash and cash equivalents, beginning of period		84,843			19,055
Cash and cash equivalents, end of period	$	76,175		$	86,975

See Notes to Condensed Consolidated Financial Information.

SS&C Technologies Holdings, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Information

Note 1. Reconciliation of Revenue to Adjusted Revenue

Adjusted revenue represents revenue adjusted for one-time purchase accounting adjustments to fair value deferred revenue acquired in business combinations. Adjusted revenue is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of the Company. Adjusted revenue is not a recognized term under generally accepted accounting principles (GAAP). Adjusted revenue does not represent revenue, as that term is defined under GAAP, and should not be considered as an alternative to revenue as an indicator of our operating performance. Adjusted revenue as presented herein is not necessarily comparable to similarly titled measures. The following is a reconciliation between adjusted revenue and revenue, the GAAP measure we believe to be most directly comparable to adjusted revenue.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2011		2010		2011		2010
Revenue	$	94,323	$	83,003	$	275,133	$	242,795
Purchase accounting adjustments to deferred revenue		7		36		20		178
Adjusted revenue	$	94,330	$	83,039	$	275,153	$	242,973

Note 2. Reconciliation of Operating Income to Adjusted Operating Income

Adjusted operating income represents operating income adjusted for amortization of acquisition-related intangible assets and purchase accounting adjustments for deferred revenue and other expenses. Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of the underlying performance of the Company. Adjusted operating income is not a recognized term under GAAP. Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance. Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures. The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands)	2011			2010			2011			2010
Operating income	$	24,090		$	19,585		$	70,092		$	58,795
Amortization of intangible assets		9,295			8,727			27,408			26,135
Stock-based compensation		3,780			3,949			9,215			9,181
Capital-based taxes		—			407			154			861
Unusual or non-recurring charges		579			121			1,069			204
Purchase accounting adjustments		(104	)		(87	)		(308	)		(124	)
Other		—			(47	)		(30	)		114
Adjusted operating income	$	37,640		$	32,655		$	107,600		$	95,166

Note 3. Reconciliation of Net Income to EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA

EBITDA represents net income before interest expense, income taxes, depreciation and amortization. Consolidated EBITDA, defined under our Credit Agreement entered into in November 2005, is used in calculating covenant compliance, and is EBITDA adjusted for certain items. Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below. Adjusted consolidated EBITDA is calculated by subtracting acquired EBITDA from consolidated EBITDA. EBITDA, consolidated EBITDA and adjusted consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity’s debt capacity and its ability to service debt. EBITDA, consolidated EBITDA and adjusted consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities. EBITDA, consolidated EBITDA and adjusted consolidated EBITDA do not represent net income, as that term is defined under GAAP, and should not be considered as alternatives to net income as an indicator of our operating performance. The following is a reconciliation between EBITDA, consolidated EBITDA and adjusted consolidated EBITDA and net income.

	Three Months Ended						Nine Months Ended						Twelve Months Ended
	September 30,						September 30,						September 30,
(in thousands)	2011			2010			2011			2010			2011
Net income	$	14,899		$	9,854		$	37,761		$	23,237		$	46,937
Interest expense, net		3,215			6,743			14,697			29,298			21,291
Income taxes		6,324			3,641			17,814			6,913			22,935
Depreciation and amortization		10,492			10,059			31,482			30,356			41,854
EBITDA		34,930			30,297			101,754			89,804			133,017
Stock-based compensation		3,780			3,949			9,215			9,181			13,288
Capital-based taxes		—			407			154			861			384
Acquired EBITDA and cost savings		156			—			749			192			2,003
Unusual or non-recurring charges		231			(533	)		890			(449	)		1,014
Purchase accounting adjustments		(104	)		(87	)		(308	)		(124	)		(422	)
Other		(122	)		(47	)		(36	)		114			(111	)
Consolidated EBITDA		38,871			33,986			112,418			99,579			149,173
Less: acquired EBITDA		(156	)		—			(749	)		(192	)		(2,003	)
Adjusted Consolidated EBITDA	$	38,715		$	33,986		$	111,669		$	99,387		$	147,170

Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share to Adjusted Diluted Earnings Per Share

Adjusted net income and adjusted diluted earnings per share represent net income and earnings per share before amortization of intangible assets and deferred financing costs, stock-based compensation, capital-based taxes and other unusual and non-recurring items. Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP, do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance. Adjusted net income and adjusted diluted earnings per share are important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, capital-based taxes and other unusual and non-recurring items that are not operational in nature or comparable to those of our competitors. The following is a reconciliation between adjusted net income and adjusted diluted earnings per share and net income and diluted earnings per share.

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in thousands, except per share data)	2011			2010			2011			2010
GAAP — Net income	$	14,899		$	9,854		$	37,761		$	23,237
Plus: Amortization of intangible assets		9,295			8,727			27,408			26,135
Plus: Amortization of deferred financing costs		414			493			1,300			1,631
Plus: Stock-based compensation		3,780			3,949			9,215			9,181
Plus: Capital-based taxes		—			407			154			861
Plus: Unusual and non-recurring items		231			(533	)		890			(449	)
Plus: Loss on extinguishment of debt		—			—			2,881			5,480
Plus: Purchase accounting adjustments		(104	)		(87	)		(308	)		(124	)
Plus: Other		—			(47	)		(30	)		114
Income tax effect (1)		(5,870	)		(5,600	)		(16,166	)		(18,629	)
Adjusted net income	$	22,645		$	17,163		$	63,105		$	47,437
Adjusted diluted earnings per share	$	0.28		$	0.23		$	0.79		$	0.66
GAAP diluted earnings per share	$	0.18		$	0.13		$	0.47		$	0.32
Diluted weighted-average shares outstanding		80,730			75,441			80,109			71,499

(1) An estimated normalized effective tax rate of 35% has been used to adjust the provision for income taxes for the purposes of computing adjusted net income.