"We are very pleased with Advent's third quarter performance. We achieved strong results in our key financial metrics and saw increased demand across all areas of our business," said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. "Our broad portfolio of products, diverse customer base, financial and competitive strength, and long-term strategy position us well for the future."

THIRD QUARTER RESULTS

In July 2009, the Company entered into a definitive agreement for the sale of its New York-based subsidiary MicroEdge, Inc. to Vista Equity Partners, which was completed on October 1, 2009. All past and future reported results of the MicroEdge business are now reported as discontinued operations of the Company.

GAAP Results for Continuing Operations

The Company reported revenue from continuing operations of $63.8 million for the third quarter of 2009, compared to $58.2 million from continuing operations in the third quarter of 2008, a 10% increase.

Operating income from continuing operations for the third quarter of 2009 was $5.8 million, or 9% of revenue, and represents an increase of 83% compared to $3.2 million from continuing operations, or 5% of revenue, in the third quarter of 2008.

Net income from continuing operations for the third quarter of 2009 was $3.9 million compared to $1.8 million from continuing operations in the third quarter of 2008, a 114% increase.

On a fully diluted basis, earnings per share from continuing operations in the third quarter of 2009 were $0.15 and represent a 127% increase from $0.06 from continuing operations in the third quarter of 2008.

Operating cash flow from continuing operations in the third quarter of 2009 was $19.8 million, compared with $17.5 million from continuing operations in the third quarter of 2008, a 13% increase. Cash and cash equivalents of continuing operations totaled $69.2 million as of September 30, 2009.

Total deferred revenues from continuing operations were $132.7 million as of September 30, 2009, compared to $127.1 million from continuing operations as of September 30, 2008, a 4% increase.

Non-GAAP Results for Continuing Operations

Non-GAAP operating income from continuing operations for the third quarter of 2009 was $12.3 million, or 19% of revenue. This represents a 49% increase compared to $8.3 million from continuing operations, or 14% of revenue, in the third quarter of 2008.

Non-GAAP diluted earnings per share from continuing operations were $0.30 in the third quarter of 2009 and represent a 58% increase from $0.19 from continuing operations in the third quarter of 2008.

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

GAAP Results for Discontinued Operations

Net income from discontinued operations for the third quarter of 2009 was $0.8 million, compared to $0.9 million from discontinued operations in the third quarter of 2008.

On a fully diluted basis, earnings per share from discontinued operations in the third quarter of 2009 were $0.03, consistent with the third quarter of 2008.

THIRD QUARTER HIGHLIGHTS

• Customer Momentum: Advent saw continued momentum in customer wins for Advent Portfolio Exchange (APX), Geneva and Tamale RMS. The Company signed 19 APX contracts in the third quarter, which, combined with the third quarter APX outsourcing contracts, brings the total number of global APX contracts signed to more than 500. Advent signed 10 Geneva contracts in the third quarter. The Company also added one of the largest university endowments to Tamale's list of clients in the third quarter.
  
• New and Incremental Bookings: The term license contracts signed in the third quarter of 2009 will contribute approximately $6 million in annual revenue ("annual term license contract value" or "ACV") once they are fully implemented.
  
• Launch of Advent Revenue Center 3.0: Advent unveiled significant new features to Advent Revenue Center, its comprehensive billing and revenue management solution. Advent Revenue Center 3.0 includes revenue forecasting and revenue sharing to help firms maximize revenues, increase efficiency and mitigate operational risk.
  
• Appointment of Chief Financial Officer: Advent promoted James Cox, previously Vice President and Principal Accounting Officer of Advent, to the position of Senior Vice President and Chief Financial Officer.

FINANCIAL GUIDANCE   
Advent announces the following financial guidance for Q4 and FY 2009: