Advent Software (NASDAQ:ADVS), a leading provider of software and services to the global investment management industry, announced today financial results for the third quarter ended September 30, 2010.
"I am extremely pleased with our third quarter financial results. Once again, we performed well across all areas of our business," said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. "There is a strong need for our products as firms increasingly look to more effectively manage risk and drive greater operational efficiency. Our domestic competitive position remains very strong, and I am excited to report that we are seeing excellent international growth."
THIRD QUARTER 2010 RESULTS
GAAP Results from Continuing Operations
The Company reported revenue from continuing operations of $72.0 million for the third quarter of 2010, compared to $63.8 million in the third quarter of 2009, a 13% increase.
Operating income from continuing operations for the third quarter of 2010 was $9.7 million, or 14% of revenue, which represented an increase of 67% compared with $5.8 million, or 9% of revenue, in the third quarter of 2009.
Net income from continuing operations for the third quarter of 2010 was $6.0 million compared to net income of $3.9 million in the third quarter of 2009, a 53% increase.
On a fully diluted basis, earnings per share from continuing operations in the third quarter of 2010 were $0.22 and represent a 47% increase from diluted earnings per share of $0.15 in the third quarter of 2009.
Operating cash flow from continuing operations in the third quarter of 2010 was $21.6 million, compared to $19.8 million in the third quarter of 2009, a 9% increase. Cash, cash equivalents and marketable securities of continuing operations totaled $122.0 million as of September 30, 2010.
The Company repurchased approximately 32,000 of its shares in the third quarter of 2010 at an average price of $45.89 per share.
Non-GAAP Results from Continuing Operations
Non-GAAP operating income from continuing operations for the third quarter of 2010 was $15.7 million, or 22% of revenue. ue. This represents a 28% increase compared to $12.3 million from continuing operations, or 19% of revenue, in the third quarter of 2009. On a fully diluted basis, Non-GAAP earnings per share from continuing operations were $0.38 and represent a 27% increase from Non-GAAP diluted earnings per share of $0.30 in the third quarter of 2009.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
THIRD QUARTER HIGHLIGHTS
* Healthy Trends in Fundamental Business Metrics: New term license and Advent OnDemand contracts signed in the third quarter of 2010 are expected to contribute $7.6 million in annual revenue once they are fully implemented, a 12% increase over the third quarter of 2009. The renewal rate improved to a 91% initial renewal rate for the second quarter of 2010, a 4 point improvement over the same period last year.
* Continued International Growth: Signaling continued international momentum in Asia, Europe and the Middle East, Advent signed new customers in Singapore, Bahrain, Sweden, Switzerland and the U.K. in the third quarter. New customers included one of the largest multi-strategy hedge funds in Asia and a major global bank with operations in both Europe and Asia.
* Launch of Moxy 7.0: Advent released the latest version of Moxy, its industry leading trade order management solution. The new features and functionality included in Moxy 7.0 help meet the demands of a more complex and faster-paced investment marketplace. It is designed to support the growing trend towards model-driven portfolio construction and management, combined with increased concerns about compliance.
* Waters Magazine Award: For the second consecutive year, Advent was named 'Best Portfolio Management System Provider' by Waters Magazine in the publication's annual readers' choice rankings.
* Client Conference: With more than 1,100 attendees, Advent hosted a very successful client conference the week of September 21st in Las Vegas.