Advent Software Reports Second Quarter 2013 Results

Company Achieves Record Quarterly Revenue of $96 Million, Non-GAAP Earnings per Share of $0.37, and Non-GAAP Operating Profit of $31 Million

Actualizado el 29 de julio, 2013 - 22.15hs.

SAN FRANCISCO, CA -- (Marketwired) -- 07/29/13 -- 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 second quarter ended June 30, 2013.

"I am pleased to report Advent delivered a strong second quarter with record revenue and non-GAAP profitability, and strong renewals," said Pete Hess, Chief Executive Officer at Advent. "We continue to win new business, while also investing in our solutions, and we're doing it all while ensuring that we deliver the operational efficiency gains we're committed to achieving. It is exciting to see these results as we continue to execute on our strategy and deliver results and value to our shareholders and clients."

SECOND QUARTER 2013 RESULTS

Recapitalization Transaction
As previously announced, the Company entered into a new $425 million senior credit facility and declared a one-time special cash dividend of $9 per share. In connection with the dividend, the Company modified its outstanding equity awards to preserve the pre-dividend economic value. The special dividend was approved by Advent's Board of Directors on June 12, 2013 and paid to stockholders on July 9, 2013. Of the $9 per share distribution, totaling $470 million, Advent currently expects between $2 to $3 per share to be characterized as a dividend for tax purposes, and the remaining amount of the distribution to be characterized as a return of capital.

GAAP Results for Continuing Operations
The Company reported quarterly revenue of $96.1 million for the second quarter of 2013, compared to $89.7 million in the second quarter of 2012, a 7% increase.

Advent's results for the second quarter of 2013 included costs associated with the recapitalization transaction. These costs, on a pre-tax basis, were composed of $6.7 million of third party costs which were not included in capitalized debt issue costs and $21.9 million of stock-based compensation expense associated with the equity award modification.

Operating loss for the second quarter of 2013 was $(5.8) million, or (6.1)% of revenue, compared to operating income of $12.1 million or 13.4% of revenue for the second quarter of 2012.

Net loss for the second quarter of 2013 was $(4.2) million compared to net income of $7.2 million in the second quarter of 2012.

Diluted net loss per share in the second quarter of 2013 was $(0.08), compared to diluted net income per share of $0.14 in the second quarter of 2012.

Operating cash flow in the second quarter of 2013 was $21.9 million, compared with $14.9 million in the second quarter of 2012.

Cash, cash equivalents and marketable securities totaled $404 million as of June 30, 2013, compared to $247 million as of March 31, 2013, a 64% increase. Total outstanding debt as of June 30, 2013 was $225 million compared to $93 million as of March 31, 2013. After payment of the special dividend on July 9th, 2013, total outstanding debt was $350 million. Total deferred revenue as of June 30, 2013 was $174 million, compared to $177 million as of March 31, 2013.

Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the second quarter of 2013 was $31.0 million, or 32.3% of revenue. This represents a 55% increase compared to $20.0 million from continuing operations, or 22.3% of revenue, in the second quarter of 2012. On a fully diluted basis, non-GAAP earnings per share were $0.37 in the second quarter of 2013 and represent a 56% increase from non-GAAP diluted earnings per share of $0.24 in the second quarter of 2012.

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

SECOND QUARTER HIGHLIGHTS

  • Second Quarter Bookings and Client Success: The annual contract value of our new contract bookings in the second quarter of 2013 will contribute $6.7 million in incremental annual revenue once the contracts are fully implemented. New clients include Income Partners Asset Management, Al Rajhi Capital, DMA Direct, Halkyon Alpha LLC, F-Squared Investment Management, and Tages Capital. Atlantis Investment Management and Heptagon Capital Management, two UK asset managers, have grown their relationships with Advent this quarter, increasing the benefits to their businesses delivered by Advent Portfolio Exchange® and Tamale®, respectively. Saudi Fransi Capital is in production with Geneva®, Moxy® and Tradex® to support their business.

  • Award-Winning Solutions & Company: Advent's solutions continued to receive industry awards and win honors around the world this quarter. Advent was named "Technology Vendor of the Year" by Citywealth magazine in the UK; the FSO Knowledge Exchange named Advent Rules Manager®, one of Advent Portfolio Exchange's associated products, for "Excellence in Risk Management & Compliance"; Advent was awarded the "Best Fund Accounting and Reporting Software" for the HFMWeek European award; and the UK Systems in the City Awards recognized Advent for "Best Research Management Tool" for Tamale RMS®. Advent also continues to win accolades among industry analysts. Advent was recognized as Best-in-Class across three categories for the Advisor Desktop analysis by leading industry analyst -- CEB TowerGroup -- and Best-in-Class for the Performance Measurement analysis. Advent also made the list of San Francisco Business Times' Top Corporate Givers.

FINANCIAL GUIDANCE
Advent updates the following financial guidance for the third quarter and fiscal year 2013:


----------------------------------------------------------------------------
                    Guidance                        Q3 2013       FY 2013
----------------------------------------------------------------------------
Total Revenue ($M)                                  $93-$95      $375-$379
----------------------------------------------------------------------------
  YoY Revenue Growth                                3% - 5%       5% - 6%
----------------------------------------------------------------------------
GAAP Operating Margin                                 n/a      10.0% - 10.5%
----------------------------------------------------------------------------
Amortization of Intangibles (% of revenue)            n/a           3.0%
----------------------------------------------------------------------------
Stock Compensation Expense (% of revenue)             n/a          13.0%
----------------------------------------------------------------------------
Restructuring Charges (% of revenue)                  n/a           1.0%
----------------------------------------------------------------------------
Recapitalization Costs (% of revenue)                 n/a           1.5%
----------------------------------------------------------------------------
Non-GAAP Operating Margin                             n/a      28.5% - 29.0%
----------------------------------------------------------------------------
Operating Cash Flow ($M)                              n/a         $93-$97
----------------------------------------------------------------------------
Capital Expenditures ($M)                             n/a         $10-$12
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Effective Tax Rate (GAAP)                             n/a        30% - 35%
----------------------------------------------------------------------------
Effective Tax Rate (non-GAAP)                         n/a           35%
----------------------------------------------------------------------------


INVESTOR CALL

Advent Software, Inc. will host its Q2 2013 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q2 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 (800) 706-7745 and request conference ID #45297160. Telephone replay will be available through midnight August 5, 2013. The replay number for domestic callers is (888) 286-8010, and for international callers is (617) 801-6888, with the conference ID of #97701426.

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 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 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 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 statements regarding our momentum and market opportunities, the tax characterization of our special dividend, 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; 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 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, the Advent logo, Advent Software, Advent Rules Manager, Advent Portfolio Exchange, Tamale, and Tamale RMS, are registered trademarks of Advent Software, Inc. Tradex is a registered mark of Advent Norway AS in Norway and the European Union. All other company names or marks mentioned herein are those of their respective owners.


                           ADVENT SOFTWARE, INC.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                               (In thousands)
                             (GAAP, Unaudited)
                                                  June 30      December 31
                                                    2013           2012
                                               -------------  -------------
ASSETS
Current assets:
  Cash and cash equivalents                    $     388,743  $      58,217
  Short-term marketable securities                     6,013        111,192
  Accounts receivable, net                            55,375         61,069
  Deferred taxes, current                             18,931         18,934
  Prepaid expenses and other                          34,152         25,868
  Current assets of discontinued operation                 -             88
                                               -------------  -------------
    Total current assets                             503,214        275,368
Property and equipment, net                           32,917         37,269
Goodwill                                             204,417        206,932
Other intangibles, net                                32,858         38,205
Long-term marketable securities                        9,230         61,552
Deferred taxes, long-term                             23,509         24,524
Other assets                                          16,816         12,994
Noncurrent assets of discontinued operation            1,609          1,609
                                               -------------  -------------

    Total assets                               $     824,570  $     658,453
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities:
  Accounts payable                             $       8,773  $       5,190
  Accrued liabilities                                 40,159         37,096
  Deferred revenues                                  166,284        174,388
  Income taxes payable                                     -          5,593
  Current portion of long-term debt                   20,000         10,000
  Dividends payable                                  470,133              -
  Current liabilities of discontinued
   operation                                             610            262
                                               -------------  -------------
    Total current liabilities                        705,959        232,529
Deferred revenues, long-term                           8,107          8,787
Long-term income taxes payable                         5,335          5,335
Long-term debt                                       205,000         85,000
Other long-term liabilities                           11,910         13,139
Noncurrent liabilities of discontinued
 operation                                             3,072          3,804
                                               -------------  -------------

    Total liabilities                                939,383        348,594
                                               -------------  -------------


Stockholders' (deficit) equity:
  Common stock                                           522            505
  Additional paid-in capital                          24,582        453,585
  Accumulated deficit                               (146,271)      (154,261)
  Accumulated other comprehensive income               6,354         10,030
                                               -------------  -------------
    Total stockholders' (deficit) equity            (114,813)       309,859
                                               -------------  -------------

    Total liabilities and stockholders'
     (deficit) equity                          $     824,570  $     658,453
                                               =============  =============



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

                          Three Months Ended June
                                    30             Six Months Ended June 30
                         ------------------------  ------------------------
                             2013         2012         2013         2012
                         -----------  -----------  -----------  -----------
Net revenues:
Recurring revenues       $    88,263  $    80,942  $   172,746  $   159,662
Non-recurring revenues         7,860        8,782       15,867       16,966
                         -----------  -----------  -----------  -----------

  Total net revenues          96,123       89,724      188,613      176,628

Cost of revenues (1):
Recurring revenues            17,979       17,820       34,391       34,746
Non-recurring revenues        10,019       10,936       19,587       20,604
Amortization of
 developed technology          2,398        2,573        4,897        5,114
                         -----------  -----------  -----------  -----------

  Total cost of revenues      30,396       31,329       58,875       60,464
                         -----------  -----------  -----------  -----------

  Gross margin                65,727       58,395      129,738      116,164

Operating expenses (1):
Sales and marketing           23,217       19,711       40,421       38,157
Product development           17,923       16,501       34,885       33,300
General and
 administrative               22,641        9,198       33,001       18,867
Amortization of other
 intangibles                     953          956        1,910        1,912
Recapitalization costs         6,041            -        6,041            -
Restructuring charges            801          (34)       3,116           70
                         -----------  -----------  -----------  -----------

  Total operating
   expenses                   71,576       46,332      119,374       92,306
                         -----------  -----------  -----------  -----------

(Loss) income from
 continuing operations        (5,849)      12,063       10,364       23,858
Interest and other
 income (expense), net        (1,330)        (803)      (1,633)        (975)
                         -----------  -----------  -----------  -----------

(Loss) income from
 continuing operations
 before income taxes          (7,179)      11,260        8,731       22,883
(Benefit) provision for
 income taxes                 (3,024)       4,063          829        8,369
                         -----------  -----------  -----------  -----------

  Net (loss) income from
   continuing operations $    (4,155) $     7,197  $     7,902  $    14,514

Discontinued operation:
  Net income from
   discontinued
   operation (net of
   applicable taxes of
   $76, $162, $61 and
   $147, respectively)           110          245           88          222

                         -----------  -----------  -----------  -----------
Net (loss) income        $    (4,045) $     7,442  $     7,990  $    14,736
                         ===========  ===========  ===========  ===========

Basic net (loss) income
 per share (2):
  Continuing operations  $     (0.08) $      0.14  $      0.15  $      0.29
  Discontinued operation        0.00         0.00         0.00         0.00
                         -----------  -----------  -----------  -----------
    Total operations     $     (0.08) $      0.15  $      0.16  $      0.29
                         ===========  ===========  ===========  ===========

Diluted net (loss)
 income per share (2):
  Continuing operations  $     (0.08) $      0.14  $      0.15  $      0.27
  Discontinued operation        0.00         0.00         0.00         0.00
                         -----------  -----------  -----------  -----------
    Total operations     $     (0.08) $      0.14  $      0.15  $      0.28
                         ===========  ===========  ===========  ===========

Weighted average shares
 used to compute net
 (loss) income per
 share:
  Basic                       51,639       50,754       51,101       50,887
  Diluted                     51,639       52,977       52,243       53,117

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

  Cost of recurring
   revenues              $     1,306  $       610  $     1,794  $     1,195
  Cost of non-recurring
   revenues                    1,730          264        2,112          595
                         -----------  -----------  -----------  -----------
    Total cost of
     revenues                  3,036          874        3,906        1,790

  Sales and marketing          6,523        1,729        8,046        3,386
  Product development          3,532        1,438        4,858        2,898
  General and
   administrative             14,098        1,043       15,396        1,899
                         -----------  -----------  -----------  -----------
    Total operating
     expenses                 24,153        4,210       28,300        8,183
                         -----------  -----------  -----------  -----------

  Total stock-based
   employee compensation
   expense               $    27,189  $     5,084  $    32,206  $     9,973
                         ===========  ===========  ===========  ===========

(2) Net income 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)

                                                   Six Months Ended June 30
                                                   ------------------------
                                                       2013         2012
                                                   -----------  -----------
Cash flows from operating activities:
  Net income                                       $     7,990  $    14,736
  Adjustment to net income for discontinued
   operation net income                                    (88)        (222)
                                                   -----------  -----------
  Net income from continuing operations                  7,902       14,514

  Adjustments to reconcile net income to net cash
   provided by operating activities from
   continuing operations:
    Stock-based compensation                            32,206        9,973
    Excess tax benefit from stock-based
     compensation                                       (2,783)      (3,118)
    Depreciation and amortization                       12,673       12,851
    Amortization of debt issuance costs                    239          190
    Gain on disposal of fixed assets                         -          (16)
    Provision for doubtful accounts                        411          200
    Provision for (reduction of) sales reserves           (150)         735
    Deferred income taxes                                1,791        2,588
    Other                                                 (148)        (144)
                                                   -----------  -----------
        Effect of statement of operations
         adjustments                                    44,239       23,259
    Changes in operating assets and liabilities:
      Accounts receivable                                5,282        5,109
      Prepaid and other assets                          (4,643)         277
      Accounts payable                                   3,582          532
      Accrued liabilities                               (3,472)      (7,020)
      Deferred revenues                                 (8,634)     (12,000)
      Income taxes payable                              (5,190)       3,847
                                                   -----------  -----------
        Effect of changes in operating assets and
         liabilities                                   (13,075)      (9,255)
                                                   -----------  -----------

Net cash provided by operating activities from
 continuing operations                                  39,066       28,518

Cash flows from investing activities:
  Cash used in acquisition                                   -         (700)
  Purchases of property and equipment                   (1,611)      (3,720)
  Capitalized software development costs                (1,916)      (1,700)
  Purchases of marketable securities                   (57,863)     (72,270)
  Sales and maturities of marketable securities        213,444       60,344
                                                   -----------  -----------

Net cash provided by (used in) investing
 activities from continuing operations                 152,054      (18,046)

Cash flows from financing activities:
  Proceeds from common stock issued from exercises
   of stock options                                     16,212        3,269
  Proceeds from common stock issued under the
   employee stock purchase plan                          3,211        3,448
  Excess tax benefits from stock-based
   compensation                                          2,783        3,118
  Withholding taxes related to equity award net
   share settlement                                     (6,509)      (4,610)
  Proceeds from debt                                   225,000            -
  Repayment of debt                                    (95,000)      (2,500)
  Debt issuance costs                                   (5,725)           -
  Repurchase of common stock                                 -      (26,125)
                                                   -----------  -----------

Net cash provided by (used in) financing
 activities from continuing operations                 139,972      (23,400)

Net cash transferred to discontinued operation            (208)        (337)

Effect of exchange rate changes on cash and cash
 equivalents                                              (358)         (10)
                                                   -----------  -----------

Net change in cash and cash equivalents from
 continuing operations                                 330,526      (13,275)
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                                  $   388,743  $    52,250
                                                   ===========  ===========


                                                   Six Months Ended June 30
                                                   ------------------------
                                                       2013         2012
                                                   -----------  -----------
Supplemental disclosure of cash flow information
Cash flows from discontinued operation:
  Net cash used in operating activities            $      (208) $      (337)
  Net cash provided by investing activities                  -            -
  Net cash transferred from continuing operations          208          337
                                                   -----------  -----------
  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.
         CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
                               (In thousands)
                             (GAAP, Unaudited)


                                                    Accumulated   Total
                                Addition-             Other       Stock-
                   Common Stock    al      Accumu-    Compre-     holder's
                  -------------  Paid-In    lated     hensive     Equity
                  Shares Amount  Capital   Deficit    Income     (Deficit)
                  ------ ------ --------- --------- ----------- -----------

Balances,
 December 31,
 2011             50,997 $  510 $ 429,734 $(154,053)$     6,870 $   283,061

Stock-based award
 activity            556      5    (1,333)        -           -      (1,328)
Common stock
 repurchased and
 retired          (1,012)   (10)   (6,515)  (19,599)          -     (26,124)
Common stock
 issued under
 employee stock
purchase plan        155      2     3,446         -           -       3,448
Stock-based
 compensation          -      -    10,148         -           -      10,148
Tax benefit from
 exercise of
 stock options         -      -     3,118         -           -       3,118
Net income             -      -         -    14,736           -      14,736
Unrealized loss
 on marketable
 securities            -      -         -         -         (16)        (16)
Foreign currency
 translation
 adjustments           -      -         -         -        (537)       (537)
                  ------ ------ --------- --------- ----------- -----------
Balances, June
 30, 2012         50,696 $  507 $ 438,598 $(158,916)$     6,317 $   286,506
                  ====== ====== ========= ========= =========== ===========

Balances,
 December 31,
 2012             50,457 $  505 $ 453,585 $(154,261)$    10,030 $   309,859

Stock-based award
 activity          1,606     15     9,691         -           -       9,706
Common stock
 issued under
 employee stock
purchase plan        174      2     3,209         -           -       3,211
Stock-based
 compensation          -      -    26,621         -           -      26,621
Tax shortfall
 from exercise of
 stock options         -      -    (1,174)        -           -      (1,174)
Tax benefit from
 exercise of
 stock options         -      -     2,783         -           -       2,783
Cash dividends
 declared on
 common stock          -      -  (470,133)        -           -    (470,133)
Net income             -      -         -     7,990           -       7,990
Unrealized loss
 on marketable
 securities            -      -         -         -         (26)        (26)
Foreign currency
 translation
 adjustments           -      -         -         -      (3,650)     (3,650)
                  ------ ------ --------- --------- ----------- -----------
Balances, June
 30, 2013         52,237 $  522 $  24,582 $(146,271)$     6,354 $  (114,813)
                  ====== ====== ========= ========= =========== ===========



                            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 June 30
                                  -----------------------------------------
                                          2013                  2012
                                  -------------------   -------------------
                                             % of Net              % of Net
                                    Amount   Revenues     Amount   Revenues
                                  ---------  --------   ---------  --------

GAAP gross margin                 $  65,727      68.4%  $  58,395      65.1%
  Amortization of acquired
   intangibles                        1,883                 1,901
  Stock-based compensation            3,036                   874
                                  ---------             ---------
Non-GAAP gross margin             $  70,646      73.5%  $  61,170      68.2%
                                  =========             =========

GAAP operating (loss) income      $  (5,849)     (6.1)% $  12,063      13.4%
  Amortization of acquired
   intangibles                        2,836                 2,857
  Stock-based compensation           27,189                 5,084
  Restructuring charges (benefit)       801                   (34)
  Recapitalization costs              6,041                     -
                                  ---------             ---------
Non-GAAP operating income         $  31,018      32.3%  $  19,970      22.3%
                                  =========             =========

GAAP net (loss) income            $  (4,155)            $   7,197
  Amortization of acquired
   intangibles                        2,836                 2,857
  Stock-based compensation           27,189                 5,084
  Restructuring charges (benefit)       801                   (34)
  Recapitalization costs              6,692                     -
  Income tax adjustment (1)         (13,642)               (2,645)
                                  ---------             ---------
Non-GAAP net income               $  19,721             $  12,459
                                  =========             =========

GAAP net (loss) income            $  (4,155)            $   7,197
  Net interest                        1,351                   457
  (Benefit) provision for income
   taxes                             (3,024)                4,063
  Depreciation expense                2,920                 2,943
  Amortization expense                3,352                 3,529
  Stock-based compensation           27,189                 5,084
                                  ---------             ---------
Adjusted EBITDA                   $  27,633             $  23,273
                                  =========             =========

Diluted net income (loss) per
 share
  GAAP                            $   (0.08)            $    0.14
  Non-GAAP                        $    0.37             $    0.24

Shares used to compute GAAP
 diluted net (loss) income per
 share                               51,639                52,977
Shares used to compute Non-GAAP
 diluted net income per share        53,772                52,977


(1)   The estimated non-GAAP effective tax rate was 35% for the three months
      ended June 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                                     10.0%      to     10.5%
                                                 ===========================

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

                                                 ---------------------------
Projected non-GAAP                                 28.5%      to     29.0%
                                                 ===========================


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

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