Advent Software Reports Second Quarter Results
PRNewswire (07/24/2003 4:20 PM ET)

Advent Software Reports Second Quarter Results SAN FRANCISCO, July 24 /PRNewswire-FirstCall/ -- Advent Software, Inc. (Nasdaq: ADVS) today announced that revenue for the second quarter ended June 30, 2003 was $32.8 million, compared with $38.9 million in the same quarter of last year. Net loss for the quarter was $9.6 million or $0.30 cents per share under GAAP compared with a net loss of $12.1 million or $0.35 cents per share in the same quarter of last year. Net loss for the second quarter of 2003 includes restructuring charges of $2.7 million which relate to the workforce reduction announced on June 12th. "When I returned in May, I made it clear that as a management team we are intent on controlling expenses tightly," said Stephanie DiMarco, Chairman and interim CEO of Advent. "We still have some substantial challenges ahead of us as well as tough market conditions. However, I am convinced that if we focus on our core markets, listen to our customers' needs and have a disciplined approach to execution, we will find opportunities that will allow us to have sustainable growth into the future." ADVENT LAUNCHES HEDGE FUND AND FUND ADMINISTRATOR SOLUTIONS In May Advent launched "Advent for Hedge Fund Managers," a comprehensive front-to-back solution that provides hedge fund managers with the reliable decision support for today's investing environment. Available in two versions, Standard and Premier, the solution is designed to meet the diverse functional and technical requirements of hedge funds and funds of funds of all sizes and strategies. The Standard module uses the industry-standard Axys(R) portfolio management application to offer accurate equity and fixed-income accounting, flawless P&L measurement and the best reporting tools available in the investment management industry. The Premier module leverages the revolutionary Geneva(R) portfolio accounting engine to provide comprehensive securities coverage, including swaps and distressed debt. It also includes multidimensional P&L reporting by fund, strategy, trader, analyst and custodian, and it provides unprecedented data accuracy, access and scalability. Also in the second quarter, Advent launched "Advent for Fund Administrators," a next-generation solution designed to meet the specialized needs of firms that provide fund administration services to mutual funds, hedge funds and funds of funds. Geneva, the solution's core, has been enhanced with new fund structure functionality that allows firms to cut Net Asset Values at the class, sub-class or series level, simplifying the processes and accounting typically associated with complex master-feeder and fund of funds structures. Advent will continue to introduce market-specific solutions that meet the unique needs of the niche markets in financial services. Later in the third quarter Advent will launch "Advent for Asset Managers," featuring straight-through processing capabilities and added compliance functionality. GENEVA CAPTURES NEW CLIENTS Geneva continues to be sold on a stand-alone basis, and is marketed to global asset managers, prime brokers, hedge funds and fund administrators. In the second quarter, Geneva was chosen by a hedge fund managing $3 billion and by the alternative asset group of a major national bank. Advent currently has many of the largest hedge funds using Geneva, but its functionality is also applicable to small and medium-sized hedge funds that use sophisticated trading strategies. RECLASSIFICATION OF CERTAIN REVENUES AND EXPENSES Certain license and development fee and maintenance and other recurring revenue reported in prior comparative periods and in the first quarter of 2003 have been reclassified to professional services and other, to better reflect Advent's view of the current business. Additionally, the Company has reclassified certain amounts appearing in cost of revenues and operating expenses. These reclassifications do not affect net revenues, net income or loss or stockholders' equity as previously reported. GUIDANCE Advent projects third quarter total revenues to be approximately flat with the second quarter and total expenses, excluding amortization of intangibles, to be approximately $37.5 million. Management will not provide guidance on full fiscal year 2003 due to continued uncertainty in Advent's market. ADVENT SECOND QUARTER CONFERENCE CALL Advent will be hosting its second quarter conference call at 5:00 p.m. Eastern time today, July 24, 2003. To participate via phone, please dial (973) 582-2734. If you are unable to listen to the call at this time, a replay will be available through July 31st by calling (973) 341-3080, pass code 4036132. Today's conference call will also be web-cast live and archived on www.advent.com on the Investor Relations page through the "Presentations" link. ABOUT ADVENT Advent Software, Inc. (www.advent.com) has been providing trusted solutions to the world's leading financial professionals since 1983. Firms in 55 countries use Advent technology to 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. The forward looking statements included in this press release, which reflect management's best judgment based on factors currently known, involve risks and uncertainties. These risks and uncertainties include potential fluctuations in results and future growth rates, the successful development and market acceptance of new products and product enhancements, continued uncertainties and fluctuations in the financial markets, challenges assimilating acquired entities, 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, copies of which may be obtained by contacting Advent Software's Investor Relations department at 415-645-1243, or Advent's Investor Relations website at http://www.advent.com/. Actual results may differ materially. ADVENT SOFTWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Three Months Six Months Ended Ended Ended March 31, June 30, June 30, 2003 2003 2002 2003 2002 Unaudited Unaudited Unaudited Revenues: License and development fees $6,742 $6,470 $10,230 $13,212 $31,287 Maintenance and other recurring 21,140 21,154 20,474 42,294 41,007 Professional services and other 5,162 5,134 8,164 10,296 15,771 Net revenues 33,044 32,758 38,868 65,802 88,065 Cost of revenues: License and development fees 554 703 440 1,257 876 Maintenance and other recurring 7,379 7,662 6,160 15,041 11,494 Professional services and other 3,807 4,740 4,572 8,547 9,155 Total cost of revenues 11,740 13,105 11,172 24,845 21,525 Gross margin 21,304 19,653 27,696 40,957 66,540 Operating expenses: Sales and marketing 11,455 11,263 14,667 22,718 28,168 Product development 9,367 9,692 10,049 19,059 19,324 General and administrative 5,312 6,602 5,013 11,914 9,801 Amortization of intangibles 3,360 3,402 2,645 6,762 4,512 Restructuring expense 3,489 2,671 -- 6,160 -- Total operating expenses 32,983 33,630 32,374 66,613 61,805 Income (loss) from operations (11,679) (13,977) (4,678) (25,656) 4,735 Interest income and other expense, net 172 (3) (7,930) 169 (6,269) Loss before income taxes (11,507) (13,980) (12,608) (25,487) (1,534) Provision for (benefit from) income taxes (4,027) (4,384) (496) (8,411) 3,269 Net loss $(7,480) $(9,596) $(12,112) $(17,076) $(4,803) Net loss per share data: Basic: Net loss per share $(0.23) $(0.30) $(0.35) $(0.53) $(0.14) Shares used in per share calculations 32,390 32,123 34,650 32,266 34,503 Diluted: Net loss per share $(0.23) $(0.30) $(0.35) $(0.53) $(0.14) Shares used in per share calculations 32,390 32,123 34,650 32,266 34,503 ADVENT SOFTWARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) June 30, December 31, 2003 2002 Unaudited ASSETS Current assets: Cash, cash equivalents, and short- term investments $153,522 $173,829 Accounts receivable, net 17,202 20,218 Prepaid expenses and other 10,506 11,373 Income taxes receivable 1,639 6,289 Deferred income taxes 4,666 4,714 Total current assets 187,535 216,423 Fixed assets, net 27,374 28,001 Other assets, net 199,126 189,486 Total assets $414,035 $433,910 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $3,024 $2,637 Accrued liabilities 18,044 14,704 Deferred revenues 34,247 31,918 Income taxes payable 7,441 5,817 Total current liabilities 62,756 55,076 Long-term liabilities 2,199 5,479 Total liabilities 64,955 60,555 Stockholders' equity: Common stock 323 329 Additional paid-in capital 293,063 302,649 Retained earnings 50,309 67,385 Cumulative other comprehensive income (loss) 5,385 2,992 Total stockholders' equity 349,080 373,355 Total liabilities and stockholders' equity $414,035 $433,910