Advent Software (NASDAQ:ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the first quarter ended March 31, 2010.
"I'm extremely proud of Advent's first quarter financial performance. We achieved very positive results across our business and robust growth in bookings," said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. "We believe our investment in product development and geographic expansion will continue to drive top line growth around the world. We remain very confident about the market opportunity ahead of us."
FIRST QUARTER 2010 RESULTS
GAAP Results for Continuing Operations
The Company reported revenue from continuing operations of $66.7 million for the first quarter of 2010, compared to $66.3 million in the first quarter of 2009, a 1% increase.
Operating income from continuing operations for the first quarter of 2010 was $7.3 million, or 11% of revenue, which represented a decrease of 13% compared with $8.4 million, or 13% of revenue, in the first quarter of 2009. This decrease is reflective of increased sales and marketing efforts and increased facilities costs during the quarter.
Net income from continuing operations for the first quarter of 2010 was $4.2 million compared to net income of $5.4 million in the first quarter of 2009, a 21% decrease.
On a fully diluted basis, earnings per share from continuing operations in the first quarter of 2010 were $0.16 and represent a 25% decrease from diluted earnings per share of $0.21 in the first quarter of 2009.
Operating cash flow from continuing operations in the first quarter of 2010 was $12.5 million, compared with $10.8 million in the first quarter of 2009, a 16% increase. Cash, cash equivalents and marketable securities of continuing operations totaled $112.0 million as of March 31, 2010, compared to $34.2 million as of March 31, 2009, a 228% increase.
The Company repurchased 249,000 shares in the first quarter of 2010 at an average price of $42.41 per share.
Total deferred revenues from continuing operations as os as of March 31, 2010 were $142.2 million, compared to $146.1 million as of December 31, 2009, a decrease of 3%.
Non-GAAP Results for Continuing Operations
Non-GAAP operating income from continuing operations for the first quarter of 2010 was $12.7 million, or 19% of revenue. This represents a 6% decrease compared to $13.5 million from continuing operations, or 20% of revenue, in the first quarter of 2009. Non-GAAP earnings per share from continuing operations were $0.29 in the first quarter of 2010 and represent a 13% decrease from non-GAAP diluted earnings per share of $0.33 in the first quarter of 2009.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
FIRST QUARTER HIGHLIGHTS
-- Strong First Quarter Bookings: The term license and Advent OnDemand(SM) contracts signed in the first quarter of 2010 will contribute $7.3 million in annual revenue once they are fully implemented.
-- Launch of Advent Portfolio Exchange® (APX) 3.0: Advent launched its most extensive release of APX to date. With this release, Advent continues to set a new standard in comprehensive portfolio management for both asset managers and wealth managers around the globe.
-- Launch of Axys 3.8: Advent released Axys® 3.8, an important update to Advent's turnkey portfolio accounting and reporting solution. The latest release of Axys® marks Advent's continued commitment to keeping the platform current as technology and regulatory changes impact its client base.
-- Building Momentum in Asia Pacific (APAC): Advent signed several important deals in Asia in the first quarter. Advent is committed to the APAC region and continues to expand its presence there as part of its international growth strategy.
-- Acquisition of Goya AS: In the first quarter, Advent acquired Goya, a privately held Norwegian software provider. Through the acquisition, Advent now offers Goya's product, Tradex, a software solution for fund managers and fund distributors in Europe and the
Middle East. By combining Tradex with its other solutions, Advent will have the most competitive solution for the international fund management and distribution market.
-- Ongoing Commitment to Delivering World-Class Service and Support: Advent's Client Support and Professional Services organizations achieved certification under the prestigious Service Capability & Performance (SCP) Standards. Advent is the only financial services
software firm to achieve certification in both Client Support and Professional Services.
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