Advent Software achieves record quarterly revenue of $64.0 Million, a 22% increase over prior year
Advent Software, Inc, a provider of software and services to the investment management industry, has announced its financial results for the second quarter ended June 30, 2008.
“We are delighted to report that Advent had another outstanding quarter that included record revenue, as well as strong operating cash flow, term license contract value and other bookings,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. “We are seeing tremendous growth internationally and continued demand in the U.S. We are in the midst of another terrific year and believe we are well positioned for future growth and profitability.”
The Company reported record revenue of $64.0 million for the second quarter of 2008, compared to $52.4 million in the second quarter of 2007, a 22% increase.
Income from operations for the second quarter of 2008 was $5.1 million, or 8% of revenue, which represented an increase of 67% compared with $3.0 million, or 6% of revenue, in the second quarter of 2007.
Net income for the second quarter of 2008 was $7.4 million compared to net income of $5.1 million in the second quarter of 2007, a 44% increase.
On a fully diluted basis, earnings per share in the second quarter of 2008 were $0.26 and represent a 43% increase from diluted earnings per share of $0.18 in the second quarter of 2007.
Cash flow from operations in the second quarter of 2008 was $25.8 million, compared with $12.0 million in the second quarter of 2007. Cash and cash equivalents totaled $82.4 million as of June 30, 2008, compared to $58.0 million as of March 31, 2008.
Deferred revenues as of June 30, 2008 were $130.6 million, compared to $122.9 million as of March 31, 2008.
SECOND QUARTER HIGHLIGHTS
* Operating Cash Flow: Advent’s operating cash flow was $25.8 million for the second quarter of 2008. The four quarter trailing growth rate was 40%. Days sales outstanding (DSO) were 59 days in the second quarter of 2008 versus 67 days during the same period last year.
* TIAA-CREF: Advent was selected by TIAA-CREF, the leading provider of retirement services in the academic, medical and cultural fields, to build an innovative service to address new regulatory challenges faced by 403(b) retirement plan administrators. The service will leverage Advent’s custodial data infrastructure (ACD) to aggregate data from multiple vendors to help prevent non-compliant transactions before they occur and enable plan providers to verify compliance.
* Term License Growth: Advent’s term license contract value (TCV), including migrations, was $21.2 million for the second quarter of 2008. With an average term of 3.1 years, the corresponding annual contract value (ACV) was approximately $6.9 million, an increase of 9% over the same period last year. When fully implemented, the term license contracts signed in the second quarter will add an additional $6.9 million to annual term license revenue. The four quarter trailing growth rates for TCV and ACV were 55% and 47%, respectively. It should be noted the TIAA-CREF contract is for data services, rather than a term license, and as such is not included in term license contract value, however, after meeting certain milestones and acceptance, the expected total value of that contract exceeds the term license contract value reported for the second quarter of 2008.
* Customer Momentum for APX and Geneva®: Advent saw continued momentum in customer wins for its award-winning portfolio accounting platforms. The Company sold a second quarter record of 25 Advent Portfolio Exchange® (“APX”) contracts, bringing the total number of APX contracts sold to 237 worldwide. Advent also sold 12 new Geneva® contracts, bringing the total number of Geneva® contracts sold to 176 worldwide.
Advent has also announced that its Chief Financial Officer, Craig Collins, has left the Company. Mr. Collins will spend more time with family and pursue other opportunities. Mr. Collins has made himself available as required to help in any transition. In the interim, Chief Executive Officer Stephanie DiMarco will be responsible for the operations of Advent’s finance department. Jim Cox, Advent’s Vice President and Corporate Controller, has been named Advent’s Principal Accounting Officer.
Advent Software, Inc. (www.advent.com <http://www.advent.com/>), a global firm, has provided trusted solutions to the world’s leading financial professionals since 1983. Firms in 60 countries use Advent technology and manage investments totaling nearly US $18 trillion. Advent’s quality software, data, services and tools enable financial professionals to improve service and communication to their clients, allowing them to grow their business while controlling costs. Advent is the only financial services software company to be awarded the Service Capability and Performance certification for being a world-class support organization. For more information, click here <http://www.advent.com/about/resources/demos/pr>.