SS&C Technologies Q1 profit jumps 58%

SS&C Technologies Q1 profit jumps 58%

US investment management software vendor SS&C Technologies is reporting a 58% jump in net income for the quarter ending 31 March 2005, while group revenue increased 43% compared to a year ago.

SS&C has posted first quarter net income of $6m, compared to $3.8m in Q1 2004, while revenue was up to $27.4m, versus $19.2m a year ago. Operating income for the period was $9.2m, 52% higher than $6m for the first quarter of last year.

In a statement the vendor says Q1 recurring revenues, which include both maintenance and outsourcing revenues, hit a new high at $20.3m, an increase of 54% over the $13.2m in Q1 2004, and representing 74% of total revenues. The firm also recorded a 100% rise in outsourcing revenues which hit $10.5 million, although the increase was mainly due to acquisitions.

The firm acquired two new businesses in the period - Eisnerfast, provider of back office accounting and administration services, and Achievement Technologies, a provider of facilities maintenance and work order processing systems. The firm also finalised its $160 million takeover of Canada's Financial Models Company (FMC) on Tuesday.

Commenting on the takeover of FMC, Bill Stone, SS&C's chairman and CEO, says: "The acquisition of FMC met three key aspects of our acquisition strategy: focus on recurring revenues, expand our market reach and strengthen our existing product offerings."

Looking ahead, Stone says the firm is "focusing on closely managing our expenses, and we are seeing economies of scale as we integrate our acquisitions".

SS&C expects Q2 2005 revenues to be in the range of $39.5m to $42.5m, while for 2005 as whole the company expects revenues of $157m to $165m.

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