Advent Software Reports Fourth Quarter and Full Year 2012 Results

Mon Feb 4, 2013 4:15pm EST

* Reuters is not responsible for the content in this press release.

  SAN FRANCISCO, CA, Feb 04 (Marketwire) -- 
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 fourth quarter ended December 31, 2012.

    "I am pleased to report that Advent delivered a strong fourth quarter and
there is great momentum in the business," said Pete Hess, Chief Executive
Officer of Advent. "We continued to execute our strategy and increased
our footprint both in the US and around the globe. This coming year marks
our 30th anniversary and our business has never been stronger and we are
excited to continue to partner with our clients to transform the
investment management industry for the next 30 years."

    FOURTH QUARTER AND FULL YEAR 2012 RESULTS

    GAAP Results for Continuing Operations
 The company reported quarterly
revenue of $92.0 million for the fourth quarter of 2012, compared to
$86.3 million in the fourth quarter of 2011, a 7% increase. Total annual
revenues for the year ended December 31, 2012 were $358.8 million,
compared to $326.2 million recorded in 2011, a 10% increase.

    Operating income for the fourth quarter of 2012 was $12.7 million, or 14%
of revenue, compared to $10.1 million, or 12% of revenue, for the fourth
quarter of 2011. The fourth quarter of 2012 results included a $3.6
million restructuring charge related to the company's reorganization.
Operating income for the year ended December 31, 2012 was $49.2 million,
or 14% of revenue, compared to $42.6 million, or 13% of revenue, for 2011.

    Net income for the fourth quarter of 2012 was $8.0 million compared to
$6.5 million in the fourth quarter of 2011. Net income for the year ended
December 31, 2012 was $30.2 million compared to $28.3 million for 2011, a
7% increase.

    On a fully diluted basis, earnings per share in the fourth quarter of
2012 was $0.16 compared to $0.12 in the fourth quarter of 2011. On a
fully diluted basis, earnings per share for the year ended December 31,
2012 was $0.58, compared to $0.52 for 2011. 

    Operating cash flows in the fourth quarter of 2012 totaled $32.8 million,
compared with $27.6 million in the fourth quarter of 2011. Operating cash
flows for the year ended December 31, 2012 totaled $86.6 million,
compared with $83.2 million for 2011, a 4% increase. 

    Cash, cash equivalents and marketable securities totaled $231 million as
of December 31, 2012, compared to $136 million as of December 31, 2011.
Total outstanding debt as of December 31, 2012 was $95 million compared
to $50 million as of December 31, 2011. Total deferred revenue was $183
million as of December 31, 2012, compared to $175 million as of December
31, 2011, a 5% increase.

    Non-GAAP Results for Continuing Operations
 Non-GAAP operating income for
the fourth quarter of 2012 was $24.6 million, or 26.7% of revenue. This
represents a 33% increase compared to $18.5 million of non-GAAP operating
income, or 21.4% of revenue, in the fourth quarter of 2011. Non-GAAP
operating income for the year ended December 31, 2012 was $85.0 million,
or 23.7% of revenue. This represents an 18% increase compared to $72.2
million of non-GAAP operating income, or 22.1% of revenue, for 2011.

    On a fully diluted basis, non-GAAP earnings per share was $0.30 in the
fourth quarter of 2012 and represents a 37% increase from non-GAAP
diluted net income per share of $0.22 in the fourth quarter of 2011. On a
fully diluted basis, non-GAAP net income per share was $1.03 for the year
ended December 31, 2012, a 21% increase compared to $0.86 per share for
2011.

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

    FOURTH QUARTER HIGHLIGHTS


--  Fourth Quarter Bookings: The annual contract value of our new contract
    bookings in the fourth quarter of 2012 will contribute $11.1 million
    in incremental annual revenue once the contracts are fully
    implemented. New clients represented all types of investment managers
    around the world including Moneta Group, Wedgewood Partners, QV
    Investors Inc., Courtiers Investment Services Limited, and Gjensidige
    Investeringsradgivning AS, amongst others.
    
    
--  Enhanced Functionality for Solutions: In the fourth quarter, we
    launched coordinated releases of Advent Portfolio Exchange(R)
    (APX), Moxy(R), and their associated products, providing clients
    with expanded instrument coverage, enhanced data presentation and
    improved reconciliation processes.
    
    
--  Award-Winning Solutions: APX was named "Best Buy-Side CRM Product" by
    Buy-Side Technology magazine. The annual award honors the
    accomplishments and innovations of products and services designed for
    buy-side investment professionals. In addition, Moxy(R) won
    "Best-in-Class" for Enterprise Support in the key industry analyst -
    CEB TowerGroup's OMS Technology Analysis report.

    

FINANCIAL GUIDANCE 
 Advent provides the following financial
guidance for the first quarter and fiscal year 2013:



----------------------------------------------------------------------------    
                  Guidance                          Q1 2013    FY 2013 
----------------------------------------------------------------------------
Total Revenue ($M)                                       $91-$93   $373-$379
----------------------------------------------------------------------------
GAAP Operating Margin(% of revenue)                        n/a    17.5-18.0%
----------------------------------------------------------------------------
Amortization of Intangibles (% of revenue)                 n/a        3%
----------------------------------------------------------------------------
Stock Compensation Expense (% of revenue)                  n/a        6%
----------------------------------------------------------------------------
Restructuring Charge (% of revenue)                        1%        0.5%
----------------------------------------------------------------------------
Non-GAAP Operating Margin (% of revenue)                   n/a    27.0-27.5%
----------------------------------------------------------------------------
GAAP Effective Tax Rate(% of Income Before Tax)           20%*      30%-35% 
----------------------------------------------------------------------------
Non-GAAP Effective Tax Rate (% of Income Before Tax)       n/a        35%
----------------------------------------------------------------------------
Operating Cash Flow ($M)                                   n/a      $93-$97 
----------------------------------------------------------------------------
Capital Expenditures ($M)                                  n/a      $10-$12 
----------------------------------------------------------------------------

*Q1 2013 GAAP Effective Tax Rate reflects the impact of the 2012 federal
 research and development tax credit enacted in January, 2013.


    
INVESTOR CALL

    Advent Software, Inc. will host its fourth quarter 2012 earnings
conference call at 5:00 p.m. Eastern time today. The fourth quarter 2012
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 (800)
510-9834 and request conference ID #35271995. Telephone replay will be
available through midnight February 11, 2013. The replay number for
domestic callers is (888) 286-8010, and for international callers is
(617) 801-6888, with the conference ID of #60805668.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 financial professionals since
1983. Advent's proven solutions can increase operational efficiency,
reduce risk, and eliminate the boundaries between systems, information
and people so you can focus on what you do best. With more than 4,500
client firms in over 60 countries, Advent has established itself as a
leading provider of mission-critical solutions to meet the demands of
investment management operations around the world. Advent is the only
financial services software company to be awarded the Service Capability
and Performance certification for being a world-class support and
services 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 Continuing
Operations' GAAP Measures to Non-GAAP Measures" and "Reconciliation of
Projected Continuing Operations' GAAP Operating Income % to Non-GAAP
Operating Income %." 

    FORWARD-LOOKING STATEMENTS 
 The financial projections under Financial
Guidance, and statements regarding the business momentum, strength of the
business, market opportunities, and any 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(R), Geneva(R), and
Moxy(R) products; the successful development, release and market
acceptance of new products, services and enhancements; uncertainties and
fluctuations in the financial markets; the Company's ability to satisfy
contractual performance requirements; difficulties in achieving
organizational objectives 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 2011 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, and
Moxy are registered trademarks of Advent Software, Inc. All other company
names or marks mentioned herein are those of their respective owners.

    

CONTACT
 Media Contact:
Amanda Diamondstein-Cieplinska
Advent Software, Inc.
(415) 645-1668
adiamond@advent.com

Investor Relations Contact:
Heidi Flaherty
Advent Software, Inc.
(415) 645-1145
flaherty@advent.com 

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