SS&C Technologies' net income slides

Reported revenue on a GAAP basis for the second quarter of 2006 was $50.7 million. Included in reported revenue for the second quarter is a $1.5 million reduction in revenue caused by purchase accounting adjustments to reflect November 23, 2005 deferred revenue at its estimated fair value. Excluding the purchase accounting adjustment, adjusted revenue (a non-GAAP financial measure defined in note 3 to the attached Consolidated Condensed Financial Information) for the second quarter of 2006 was $52.2 million, a 28% increase from the second quarter of 2005. Net profit, on a GAAP basis, for the second quarter of 2006, was $1.8 million.

Adjusted operating income (a non-GAAP financial measure defined in note 1 to the attached Consolidated Condensed Financial Information) was $18.4 million for the three months ended June 30, 2006, compared to $12.6 million in the second quarter of the prior year. The adjusted operating income increase is 47%. GAAP operating income in the second quarter of 2006 was $11.3 million and includes amortization of $5.7 million and deferred revenue adjustment and other purchase accounting items of $1.4 million. GAAP operating income in the second quarter of 2005 was $10.7 million and includes amortization of $1.8 million.

Consolidated EBITDA (a non-GAAP financial measure defined in note 2 of the Consolidated Condensed Financial Information) for the second quarter of 2006 was $21.0 million, compared to $17.1 million in the second quarter of 2005.