Advent Software (NASDAQ:ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the first quarter ended March 31, 2007.
"We are very pleased to report another strong quarter for Advent, reflecting the ongoing momentum of Advent's core business," said Stephanie DiMarco, Founder and Chief Executive Officer. "The continued demand for our industry-leading solutions has allowed us to invest in and expand our product suite, making 2007 a year of innovation as Advent builds on our leadership in the market."
The Company reported total net revenues of $48.0 million for the first quarter of 2007, compared with $43.7 million in the first quarter of 2006.
Total expenses for the first quarter of 2007, including cost of revenues, were $48.0 million, compared with $42.6 million in the first quarter of 2006.
Net income for the first quarter of 2007 was $439,000, compared with net income of $3.4 million for the first quarter of 2006.
Diluted earnings per share in the first quarter of 2007 was $0.02, which compares to diluted earnings per share of $0.11 in the first quarter of 2006.
Cash, cash equivalents and short-term investments totaled $43.0 million as of March 31, 2007, which compares to $55.1 million as of December 31, 2006. Advent repurchased 837,000 shares of the Company's common stock in the first quarter, for a total cash outlay of $30.1 million.
Cash flow from operations in the first quarter of 2007 was approximately $13.8 million, compared with $9.3 million in the first quarter of 2006 - an increase of 49%.
First Quarter Highlights
- Strong Term Contract Bookings: Advent signed new term contract bookings totaling $9.8 million with an average term of 3.4 years, which compares with $7.9 million and an average term of 2.5 years in the first quarter of 2006.
- Customer Momentum: Advent saw continued demand for its products, signing 64 new customer agreements. The Company added 15 new customers for Advent Portfolio Exchange (APX), 5 new customers for Geneva, and achieved a new milestone for Moxy, Advent's industry-leading trade order management system, rereporting more than 750 total customers.
- Product Investment and Innovation: Advent launched Advent Revenue Center for billing and revenue management in the first quarter. The product, which integrates with both APX and Axys(R), has several customers already implemented. The Company is currently engaged in validation and beta cycles for major new releases of several key products, including APX, Geneva and Moxy, as well as its new trading compliance product.
- Updated Revenue and Cost of Revenue Classifications: Advent changed its revenue and cost of revenue classifications in the first quarter to better align with the term license business model. All term license revenue is now included in a new line item, "Term license, maintenance and other recurring revenue," which represents 79% of the Company's revenues. "Perpetual license fees" are now shown separately and "Professional services and other" revenue as a line item is unchanged.
Advent issued the following guidance for the second quarter of 2007:
- Revenues in the second quarter are projected to be in the range of $49 million to $51 million;
- Expenses in the second quarter are projected to be in the range of $49 million to $50 million; included in expenses are amortization of developed technology and other intangibles, and stock-based compensation, which are projected to be approximately $4.5 million for the second quarter; and,
- Diluted weighted average shares outstanding will increase by roughly 0.5% per quarter from the first quarter of 2007 level of 28.8 million shares, excluding the impact of any share repurchases.