SAN FRANCISCO, CA — (Marketwire) — 10/24/11 — Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the third quarter ended September 30, 2011.
“Our third quarter results include record revenue of almost $85 million and strong operating cash flow of just under $24 million, which demonstrate the continued strength of Advent-s business model,” says Stephanie DiMarco, Founder and Chief Executive Officer of Advent. “Our financial results and healthy bookings continue to validate Advent-s strategy is working. As we-ve seen throughout the past three years, our portfolio of products and services, combined with our focus on client satisfaction, enable us to succeed in various market conditions.”
The Company reported quarterly revenue from continuing operations of $84.6 million for the third quarter of 2011, up from $72.0 million in the third quarter of 2010, a 17% increase.
Operating income from continuing operations for the third quarter of 2011 was $10.6 million, or 13% of revenue, compared to $9.7 million or 14% of revenue for the third quarter of 2010.
Net income from continuing operations for the third quarter of 2011 was $6.8 million compared to $6.0 million in the third quarter of 2010, a 14% increase.
On a fully diluted basis, earnings per share from continuing operations in the third quarter of 2011 were $0.13 and represent a 15% increase from diluted earnings per share of $0.11 in the third quarter of 2010.
Operating cash flow from continuing operations in the third quarter of 2011 was $23.8 million, compared with $21.6 million in the third quarter of 2010, a 10% increase. Cash, cash equivalents and marketable securities totaled $58.9 million as of September 30, 2011.
The Company repurchased approximately 1,860,000 shares in the third quarter of 2011 at an average price of $22.26 per share.
Total deferred revenue as of September 30, 2011 was $162.3 million, compared to $159.3 million as of June 30, 2011, a 2% sequential increase.
Non-GAAP operating income from continuing operations for the third quarter of 2011 was $18.5 million, or 22% of revenue. This represents a 17% increase when compared to $15.7 million from continuing operations, or 22% of revenue, in the third quarter of 2010. On a fully diluted basis, non-GAAP earnings per share from continuing operations were $0.22 in the third quarter of 2011 and represent a 15% increase from non-GAAP diluted earnings per share of $0.19 in the third quarter of 2010.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
Annual Contract Value (ACV) in the third quarter of 2011 will contribute $8.5 million in annual revenue once the contracts are fully implemented.
The third quarter saw strong demand for Advent-s leading solutions delivered as a service. Black Diamond-s cloud-based platform, which serves the US advisory market, continued to gain momentum, and Advent-s SaaS (software-as-a-service) offering for the asset management market, Advent OnDemand, added its first EMEA clients this quarter. Additionally, Advent has several strategic partnerships with firms that offer the Company-s products on a hosted basis to their clients, further expanding the reach of Advent-s hosted offerings.
Advent announced significant new features across the product suite in the third quarter, including: enhanced automation and data integration with popular mobile applications for Tamale RMS®; new Advent Portfolio Exchange® (APX) reports using Microsoft Reporting Services; and the addition of a detailed transaction data mining tool and a new report packaging tool in the Black Diamond platform.
Geneva® was named -Best Buy-Side Portfolio Accounting Product- by Buy-Side Technology magazine for the fifth consecutive year.
Advent updates the following financial guidance for the fourth quarter and fiscal year 2011:
Advent Software, Inc. will host its Q3 2011 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q3 2011 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at . To participate via phone, please dial 866-804-6928 and request conference ID #94143757. A replay will be available through midnight, October 31, 2011. The replay number for domestic callers is 888-286-8010, and for international callers is 617-801-6888 and referencing conference ID #42168388. The conference call will also be webcast live and then archived on .
Advent Software, Inc. (), a global firm, has provided trusted solutions to the world-s leading financial professionals since 1983. Firms in more than 60 countries use Advent technology. 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 .
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.”
The financial projections under Financial Guidance, and statements regarding our revenue growth, market opportunity, market acceptance and demand for our products by clients in all market environments, including our SaaS solutions, international expansion and global execution, anticipated benefits and synergies related to our acquisition of Black Diamond Performance Reporting LLC and the continued momentum of our Tamale RMS product, 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 new contract bookings, renewal rates, operating results and future growth rates; continued market acceptance of our Advent Portfolio Exchange®, Geneva® and Moxy® products; the successful development, release and market acceptance of new products and product enhancements; uncertainties and fluctuations in the financial markets; the Company-s ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Syncova Solutions Limited and Black Diamond Performance Reporting LLC, and achieving expected synergies and results; 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 2010 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.
Advent, the Advent logo, Advent Software, Advent Portfolio Exchange, Advent OnDemand, Geneva and Moxy are registered trademarks of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.
Media Contact:
Smita Topolski
Advent Software, Inc.
(415) 645-1668
Investor Relations Contact:
Heidi Flaherty
Advent Software, Inc.
(415) 645-1145
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