Advent Software Reports Third Quarter 2013 Results

Company Achieves Record Quarterly Revenue of $97 Million

Actualizado el 28 de octubre, 2013 - 21.15hs.

SAN FRANCISCO, CA -- (Marketwired) -- 10/28/13 -- 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, 2013.

"Advent delivered record revenues and solid profitability, demonstrating the value customers continue to place on our solutions," said Pete Hess, Chief Executive Officer at Advent. "Third quarter highlights also included our successful annual client conference, AdventConnect, where we shared a well-received preview of our new cloud-based solution platform, which launches next year. It's exciting to see the enthusiasm as we continue to sharpen our focus on our clients' success."

THIRD QUARTER 2013 RESULTS

GAAP Results for Continuing Operations
The Company reported quarterly revenue of $96.8 million for the third quarter of 2013, compared to $90.2 million in the third quarter of 2012, a 7% increase.

Operating income for the third quarter of 2013 was $17.4 million, or 18.0% of revenue, compared to $12.6 million or 14.0% of revenue for the third quarter of 2012.

Net income for the third quarter of 2013 was $9.8 million compared to $7.7 million in the third quarter of 2012.

On a fully diluted basis, earnings per share in the third quarter of 2013 were $0.18, compared to $0.15 in the third quarter of 2012.

Operating cash flow in the third quarter of 2013 was $22.8 million, compared with $25.3 million in the third quarter of 2012.

Cash, cash equivalents and marketable securities totaled $41 million as of September 30, 2013, compared to $404 million as of June 30, 2013. On July 9, 2013, the Company paid a one-time special cash dividend of $9 per share totaling approximately $470 million. The special dividend was financed with cash on hand and proceeds from Advent's recently closed $425 million senior credit facility. Total outstanding debt as of September 30, 2013 was $350 million compared to $225 million as of June 30, 2013.

Deferred revenue as of September 30, 2013 was $173 million, compared to $174 million as of June 30, 2013.

Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the third quarter of 2013 was $29.0 million, or 30.0% of revenue. This represents a 39% increase compared to $20.8 million, or 23.1% of revenue, in the third quarter of 2012. On a fully diluted basis, non-GAAP earnings per share were $0.31 in the third quarter of 2013 and represent a 22% increase from non-GAAP diluted earnings per share of $0.26 in the third quarter of 2012.

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

THIRD QUARTER HIGHLIGHTS

  • Continued Market Demand: Advent saw continued success across all of its client segments, from hedge funds and asset managers to family offices, fund administrators and the growing advisory market. The Company added new clients including: Crabel Capital Management, Seer Capital Management LP, Whitebox Advisors, Evercore Wealth Management, Cain, Watters & Associates, Essex Financial Services, Watermark Asset Management, Sparebanken Vest, Herald Investment Management, and CACEIS. Existing clients that expanded their relationship with Advent or migrated to a new Advent platform included: Vastardis Fund Services, Sentinel Investments, Weeden Prime Services, Swift Run Capital Management, Towneley Capital Management, Brown Advisory, and BTIG.

  • Client Conference Success: With over 1,000 attendees, AdventConnect 2013 was the Company's largest client conference in its 30 year history. At the conference, Advent unveiled a number of new enhancements and product solutions including Geneva® 10.0, Tamale RMS® 7.0 and Advent Direct™.

FINANCIAL GUIDANCE

Advent updates the following financial guidance for the fourth quarter and fiscal year 2013:


----------------------------------------------------------------------------
                    Guidance                        Q4 2013       FY 2013
----------------------------------------------------------------------------
Total Revenue ($M)                                  $95 -$97     $380-$382
----------------------------------------------------------------------------
  YoY Revenue Growth                                3% - 5%          6%
----------------------------------------------------------------------------
GAAP Operating Margin                                 n/a      11.0% - 11.5%
----------------------------------------------------------------------------
Stock Compensation Expense (% of revenue)             n/a          13.0%
----------------------------------------------------------------------------
Amortization of Intangibles (% of revenue)            n/a           3.0%
----------------------------------------------------------------------------
Recapitalization Costs (% of revenue)                 n/a           1.5%
----------------------------------------------------------------------------
Restructuring Charges (% of revenue)                  n/a           1.0%
----------------------------------------------------------------------------
Non-GAAP Operating Margin                             n/a      29.5% - 30.0%
----------------------------------------------------------------------------
Operating Cash Flow ($M)                              n/a        $93 - $97
----------------------------------------------------------------------------
Capital Expenditures ($M)                             n/a         $8 - $10
----------------------------------------------------------------------------
Effective Tax Rate (GAAP)                             n/a        25% - 30%
----------------------------------------------------------------------------
Effective Tax Rate (non-GAAP)                         n/a           35%
----------------------------------------------------------------------------

INVESTOR CALL
Advent Software, Inc. will host its Q3 2013 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q3 2013 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 (877) 280-4962 and request conference ID #26629001. Telephone replay will be available through midnight November 4, 2013. The replay number for domestic callers is (888) 286-8010, and for international callers is (617) 801-6888, with the conference ID of #34661098.

The conference call will also be webcast live and then archived on http://investor.advent.com.

ABOUT ADVENT
Over the last 30 years of industry change, our core mission to help our clients focus on their unique strategies and deliver exceptional investor service has never wavered. With unparalleled precision and ahead of the curve solutions, we've helped over 4,400 firms in nearly 60 countries -- from established global institutions to small start-up practices -- to grow their business and thrive. Advent technology helps firms minimize risk, work together seamlessly, and discover new opportunities in a constantly evolving world. Together with our clients, we are shaping the future of investment management. For more information on Advent products visit http://www.advent.com.

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 in the United States of America (U.S. GAAP), please see the accompanying tables entitled "Reconciliation of Selected Continuing Operations' GAAP Measures to Non-GAAP Measures."

FORWARD-LOOKING STATEMENTS
The financial projections under Financial Guidance 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 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 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 2012 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, Advent Software, Geneva, and Tamale RMS are registered trademarks of, and the Advent logo is a mark of, Advent Software, Inc. Any other company names or marks mentioned herein are those of their respective owners.



                           ADVENT SOFTWARE, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                             (GAAP, Unaudited)

                                                September 30   December 31
                                                    2013           2012
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $      41,380  $      58,217
  Short-term marketable securities                         -        111,192
  Accounts receivable, net                            56,597         61,069
  Deferred taxes, current                             18,934         18,934
  Prepaid expenses and other                          30,917         25,868
  Current assets of discontinued operation                 -             88
                                               -------------  -------------
    Total current assets                             147,828        275,368
Property and equipment, net                           31,602         37,269
Goodwill                                             206,956        206,932
Other intangibles, net                                30,478         38,205
Long-term marketable securities                            -         61,552
Deferred taxes, long-term                             20,399         24,524
Other assets                                          16,024         12,994
Noncurrent assets of discontinued operation            1,609          1,609
                                               -------------  -------------

    Total assets                               $     454,896  $     658,453
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
  Accounts payable                             $       9,771  $       5,190
  Accrued liabilities                                 35,713         37,096
  Deferred revenues                                  165,152        174,388
  Income taxes payable                                     -          5,593
  Current portion of long-term debt                   20,000         10,000
  Current liabilities of discontinued
   operation                                             625            262
                                               -------------  -------------
    Total current liabilities                        231,261        232,529
Deferred revenues, long-term                           7,617          8,787
Long-term income taxes payable                         5,335          5,335
Long-term debt                                       330,000         85,000
Other long-term liabilities                           11,556         13,139
Noncurrent liabilities of discontinued
 operation                                             2,928          3,804
                                               -------------  -------------

    Total liabilities                                588,697        348,594
                                               -------------  -------------


Stockholders' (deficit) equity:
  Common stock                                           509            505
  Additional paid-in capital                          32,673        453,585
  Accumulated deficit                               (176,869)      (154,261)
  Accumulated other comprehensive income               9,886         10,030
                                               -------------  -------------
    Total stockholders' (deficit) equity            (133,801)       309,859
                                               -------------  -------------

    Total liabilities and stockholders'
     (deficit) equity                          $     454,896  $     658,453
                                               =============  =============



                           ADVENT SOFTWARE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share data)
                             (GAAP, Unaudited)


                                  Three Months Ended     Nine Months Ended
                                     September 30          September 30
                                 --------------------  --------------------
                                    2013       2012       2013       2012
                                 ---------  ---------  ---------  ---------
Net revenues:
Recurring revenues               $  88,116  $  81,090  $ 260,862  $ 240,752
Non-recurring revenues               8,651      9,084     24,518     26,050
                                 ---------  ---------  ---------  ---------

    Total net revenues              96,767     90,174    285,380    266,802

Cost of revenues (1):
Recurring revenues                  17,782     17,216     52,173     51,962
Non-recurring revenues              11,501     13,011     31,088     33,615
Amortization of developed
 technology                          2,508      2,586      7,405      7,700
                                 ---------  ---------  ---------  ---------

    Total cost of revenues          31,791     32,813     90,666     93,277
                                 ---------  ---------  ---------  ---------

    Gross margin                    64,976     57,361    194,714    173,525

Operating expenses (1):
Sales and marketing                 18,546     17,965     58,967     56,122
Product development                 17,369     17,077     52,254     50,377
General and administrative          10,894      8,752     43,895     27,619
Amortization of other
 intangibles                           953        955      2,863      2,867
Recapitalization costs                   -          -      6,041          -
Restructuring (benefit) charges       (157)       (17)     2,959         53
                                 ---------  ---------  ---------  ---------

    Total operating expenses        47,605     44,732    166,979    137,038
                                 ---------  ---------  ---------  ---------

Income from continuing
 operations                         17,371     12,629     27,735     36,487
Interest and other income
 (expense), net                     (2,977)      (130)    (4,610)    (1,105)
                                 ---------  ---------  ---------  ---------

Income from continuing
 operations before income taxes     14,394     12,499     23,125     35,382
Provision for income taxes           4,561      4,812      5,390     13,181
                                 ---------  ---------  ---------  ---------

    Net income from continuing
     operations                  $   9,833  $   7,687  $  17,735  $  22,201

Discontinued operation:
    Net (loss) income from
     discontinued operation (net
     of applicable taxes of
     $(16), $(13), $45 and $134,
     respectively)                     (20)        11         68        233
                                 ---------  ---------  ---------  ---------
Net income                       $   9,813  $   7,698  $  17,803  $  22,434
                                 =========  =========  =========  =========

Basic net income (loss) per
 share (2):
  Continuing operations          $    0.19  $    0.15  $    0.35  $    0.44
  Discontinued operation             (0.00)      0.00       0.00       0.00
                                 ---------  ---------  ---------  ---------
    Total operations             $    0.19  $    0.15  $    0.35  $    0.44
                                 =========  =========  =========  =========

Diluted net income (loss) per
 share (2):
  Continuing operations          $    0.18  $    0.15  $    0.33  $    0.42
  Discontinued operation             (0.00)      0.00       0.00       0.00
                                 ---------  ---------  ---------  ---------
    Total operations             $    0.18  $    0.15  $    0.33  $    0.43
                                 =========  =========  =========  =========

Weighted average shares used to
 compute net income (loss) per
 share:
  Basic                             51,576     50,401     51,241     50,722
  Diluted                           53,937     52,248     53,329     52,764

(1) Includes stock-based
 employee compensation expense
 as follows:

  Cost of recurring revenues     $     853  $     615  $   2,647  $   1,810
  Cost of non-recurring revenues       578        331      2,690        926
                                 ---------  ---------  ---------  ---------
    Total cost of revenues           1,431        946      5,337      2,736

  Sales and marketing                2,874      1,877     10,920      5,263
  Product development                2,083      1,440      6,941      4,338
  General and administrative         2,003      1,108     17,399      3,007
                                 ---------  ---------  ---------  ---------
    Total operating expenses         6,960      4,425     35,260     12,608
                                 ---------  ---------  ---------  ---------

  Total stock-based employee
   compensation expense          $   8,391  $   5,371  $  40,597  $  15,344
                                 =========  =========  =========  =========

(2) Net income (loss) per share is based on actual calculated values and
 totals may not sum due to rounding.



                           ADVENT SOFTWARE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (Unaudited)


                                                       Nine Months Ended
                                                          September 30
                                                     ----------------------
                                                        2013        2012
                                                     ----------  ----------
Cash flows from operating activities:
  Net income                                         $   17,803  $   22,434
  Adjustment to net income for discontinued
   operation net income                                     (68)       (233)
                                                     ----------  ----------
  Net income from continuing operations                  17,735      22,201

  Adjustments to reconcile net income to net cash
   provided by operating activities from continuing
   operations:
    Stock-based compensation                             40,597      15,344
    Excess tax benefit from stock-based compensation     (4,220)     (4,693)
    Depreciation and amortization                        18,903      19,372
    Amortization of debt issuance costs                     593         285
    Provision for doubtful accounts                         290         209
    (Reduction of) provision for sales reserves            (196)      1,019
    Deferred income taxes                                 6,281       4,043
    Other                                                   (45)       (521)
                                                     ----------  ----------
        Effect of statement of operations
         adjustments                                     62,203      35,058
    Changes in operating assets and liabilities:
      Accounts receivable                                 4,181       8,062
      Prepaid and other assets                             (860)      4,137
      Accounts payable                                    3,843      (2,066)
      Accrued liabilities                                (9,801)     (7,137)
      Deferred revenues                                 (10,210)    (13,506)
      Income taxes payable                               (5,190)      7,024
                                                     ----------  ----------
        Effect of changes in operating assets and
         liabilities                                    (18,037)     (3,486)
                                                     ----------  ----------

Net cash provided by operating activities from
 continuing operations                                   61,901      53,773

Cash flows from investing activities:
  Cash used in acquisition                                    -        (700)
  Purchases of property and equipment                    (2,161)     (5,383)
  Capitalized software development costs                 (2,556)     (1,942)
  Purchases of marketable securities                    (57,863)    (91,926)
  Sales and maturities of marketable securities         228,619      69,600
                                                     ----------  ----------

Net cash provided by (used in) investing activities
 from continuing operations                             166,039     (30,351)

Cash flows from financing activities:
  Proceeds from common stock issued from exercises
   of stock options                                      18,382       4,211
  Proceeds from common stock issued under the
   employee stock purchase plan                           3,211       3,448
  Excess tax benefits from stock-based compensation       4,220       4,693
  Withholding taxes related to equity award net
   share settlement                                      (8,043)     (5,257)
  Proceeds from debt                                    375,000           -
  Repayment of debt                                    (120,000)     (3,750)
  Debt issuance costs                                    (5,725)          -
  Repurchase of common stock                            (41,256)    (41,275)
  Payment of cash dividend                             (470,133)          -
                                                     ----------  ----------

Net cash used in financing activities from
 continuing operations                                 (244,344)    (37,930)

Net cash transferred to discontinued operation             (358)       (593)

Effect of exchange rate changes on cash and cash
 equivalents                                                (75)        258
                                                     ----------  ----------

Net change in cash and cash equivalents from
 continuing operations                                  (16,837)    (14,843)
Cash and cash equivalents of continuing operations
 at beginning of period                                  58,217      65,525
                                                     ----------  ----------

Cash and cash equivalents of continuing operations
 at end of period                                    $   41,380  $   50,682
                                                     ==========  ==========


                                                       Nine Months Ended
                                                          September 30
                                                     ----------------------
                                                        2013        2012
                                                     ----------  ----------
Supplemental disclosure of cash flow information:
Noncash investing activities:
  Capital expenditures included in accounts payable  $      738  $        -
Cash flows from discontinued operation:
  Net cash used in operating activities              $     (358) $     (593)
  Net cash provided by investing activities                   -           -
  Net cash transferred from continuing operations           358         593
                                                     ----------  ----------
  Net change in cash and cash equivalents from
   discontinued operation                                     -           -
  Cash and cash equivalents of discontinued
   operation at beginning of period                           -           -
                                                     ----------  ----------
  Cash and cash equivalents of discontinued
   operation at end of period                        $        -  $        -
                                                     ==========  ==========

The cash flows from the discontinued operation, as presented in the
condensed consolidated statement of cash flows, relate to the operations of
MicroEdge, Inc.



                            ADVENT SOFTWARE, INC.
 RECONCILIATION OF SELECTED CONTINUING OPERATIONS' GAAP MEASURES TO NON-GAAP
                                  MEASURES
                    (In thousands, except per share data)
                                 (Unaudited)

To supplement our condensed consolidated financial statements presented in accordance with generally accepted accounting principles in the United States of America (or GAAP), Advent uses non-GAAP measures of continuing operations' gross margin, operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, income, 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 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 GAAP.


                                        Three Months Ended September 30
                                   ----------------------------------------
                                           2013                 2012
                                   -------------------  -------------------
                                              % of Net             % of Net
                                     Amount   Revenues    Amount   Revenues
                                   ---------  --------  ---------  --------

GAAP gross margin                  $  64,976      67.1% $  57,361      63.6%
  Amortization of acquired
   intangibles                         1,883                1,894
  Stock-based compensation             1,431                  946
                                   ---------            ---------
Non-GAAP gross margin              $  68,290      70.6% $  60,201      66.8%
                                   =========            =========

GAAP operating income              $  17,371      18.0% $  12,629      14.0%
  Amortization of acquired
   intangibles                         2,836                2,849
  Stock-based compensation             8,391                5,371
  Restructuring benefit                 (157)                 (17)
  Recapitalization costs                   -                    -
  Transaction related fees               565                    -
                                   ---------            ---------
Non-GAAP operating income          $  29,006      30.0% $  20,832      23.1%
                                   =========            =========

GAAP net income                    $   9,833            $   7,687
  Amortization of acquired
   intangibles                         2,836                2,849
  Stock-based compensation             8,391                5,371
  Restructuring benefit                 (157)                 (17)
  Recapitalization costs                   -                    -
  Transaction related fees               565                    -
  Income tax adjustment (1)           (4,549)              (2,434)
                                   ---------            ---------
Non-GAAP net income                $  16,919            $  13,456
                                   =========            =========

GAAP net income                    $   9,833            $   7,687
  Net interest                         2,631                  422
  Provision for income taxes           4,561                4,812
  Depreciation expense                 2,771                2,980
  Amortization expense                 3,461                3,541
  Stock-based compensation             8,391                5,371
                                   ---------            ---------
Adjusted EBITDA                    $  31,648            $  24,813
                                   =========            =========

Diluted net income per share
  GAAP                             $    0.18            $    0.15
  Non-GAAP                         $    0.31            $    0.26

Shares used to compute diluted net
 income per share                     53,937               52,248

(1) The estimated non-GAAP effective tax rate was 35% for the three months
ended September 30, 2013 and 2012, respectively, and has been used to
adjust the provision for income taxes for non-GAAP net income and non-GAAP
diluted net income per share purposes.



                            ADVENT SOFTWARE, INC.
 RECONCILIATION OF PROJECTED CONTINUING OPERATIONS' GAAP OPERATING INCOME %
                       TO NON-GAAP OPERATING INCOME %
                         (Preliminary and unaudited)

Advent provides projections for the non-GAAP measure of its continuing operations' operating income percentage. This non-GAAP measure excludes certain costs, expenses, gains and losses which we believe is appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. Adjustments to our projected continuing operations' 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. 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 of America.


                                               Twelve Months Ending December
                                                         31, 2013
                                                   Continuing Operations
                                                    Operating Income %
                                              ------------------------------

Projected GAAP                                   11.0%      to       11.5%
                                              ==============================

  Projected stock-based compensation
   adjustment                                              13.0%
  Projected amortization of acquired developed
   technology and other acquired intangible
   asset adjustment                                        3.0%
  Projected recapitalization costs                         1.5%
  Projected restructuring charge adjustment                1.0%

                                              ------------------------------
Projected non-GAAP                               29.5%      to       30.0%
                                              ==============================

CONTACTS
Media Contact:
Amanda Diamondstein-Cieplinska
Advent Software, Inc.
(415) 645-1668
Email Contact

Investor Relations Contact:
Justin Ritchie
Advent Software, Inc.
(415) 645-1683
Email Contact

Publicidad

Lo más leído »

Publicidad

Más Secciones »

Hola Invitado