Advent Software (NASDAQ: ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the second quarter ended June 30, 2007.
"We are extremely pleased with the results achieved in the second quarter of this year," said Stephanie DiMarco, Founder and Chief Executive Officer. "Comparing this quarter to the second quarter of 2006, the growth is exceptional: bookings are up 32% and revenues are up 18%. Operating profitability has improved significantly as we're starting to see the leverage of the term license model flowing into our income statement. These results demonstrate the great momentum we're seeing across our product suite as well as our focused commitment to execution, which we believe will continue to yield strong Company performance and improved financial results over the long term," added DiMarco.
- The Company reported total net revenues of $52.4 million for the second quarter of 2007, compared with $44.4 million in the second quarter of 2006.
- Total expenses for the second quarter of 2007, including cost of revenues, were $49.3 million, compared with $43.9 million in the second quarter of 2006.
- Income from operations for the second quarter of 2007 was $3.0 million, or 6% of revenue, compared with $0.5 million in the second quarter of 2006.
- During the second quarter of 2007, the Company recognized interest income and other income, net of $3.9 million, primarily as a result of a gain on the sale of two equity investments.
- Net income for the second quarter of 2007 was $5.1 million, compared with net income of $1.6 million for the second quarter of 2006.
- Diluted earnings per share in the second quarter of 2007 were $0.18, which compares to diluted earnings per share of $0.05 in the second quarter of 2006. Cash, cash equivalents and short-term investments totaled $34.1 million as of June 30, 2007, which compares to $97.2 million as of June 30, 2006.
- Cash flow from operations in the second quarter of 2007 was approximately $12.0 million, compared with $12.1 million in the second quarter of 2006.
SECOND QUARTER HIGHLIGHTS
- Strong Term Coontract Bookings: Advent signed new term contract bookings totaling $17.0 million with an average term of 3.0 years, which compares with $12.9 million and an average term of 3.1 years in the second quarter of 2006. Since the start of the transition three years ago, Advent has sold more than $100 million in term contract value.
- Customer Momentum: Advent saw continued demand for its products, adding a record 15 new customers for Geneva, as well as 21 customers for Advent Portfolio Exchange® (APX) and more than 20 new customers for Moxy.
- Product Investment and Innovation: Advent launched Moxy 6.0, the industry's most widely used order management system. Moxy 6.0 can better meet the needs of even the largest institutional asset management firms and high-net-worth asset managers, with features that include enhanced trading workflow, consolidated group trading, commission management functionality, and a new multi-tiered architecture. The Company is currently preparing for major new releases of its flagship portfolio accounting products, APX and Geneva, as well as the release of a new trading compliance product.
- Completion of the Stock Repurchase Program: Advent completed the repurchase of shares under the Stock Repurchase Program authorized by the Company's Board of Directors on February 9, 2007. Advent repurchased 1.7 million shares of the Company's common stock in the second quarter, for a total cash outlay of $61.0 million. The Company drew down $25 million of its $75 million revolving credit facility to help fund the repurchase of shares.
Advent issued the following guidance for the third quarter of 2007:
- Revenues are projected to be in the range of $52 million to $54 million;
- Expenses are projected to be in the range of $51 million to $52 million. Included in expenses are approximately $1 million of expenses associated with the Advent Conference, and approximately $4.6 million of amortization of developed technology and other intangibles, and stock-based compensation; and
- Diluted weighted average shares outstanding will increase by roughly 0.5% from the second quarter of 2007 level of 27.8 million shares to approximately 27.9 million shares, excluding the impact of any share repurchases.
Advent reiterates guidance for the full year 2007 as follows:
- Revenues are projected to be in the range of $206 million to $211 million;
- Term contract bookings are projected to be in the range of $54 million to $59 million;
- Operating cash flow is projected to be in the range of $54 million to $57 million; and
- Effective tax rate projected to be in the range of 30% to 35%.
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