Advent Software Achieves A 22 Percent Increase In Quarterly Revenue Over Prior Year

Advent Software, Inc, a provider of software and services to the investment management industry, announces that its financial results for the second quarter ended 30 June 2008. "We are delighted to report that Advent had another outstanding quarter that included

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Advent Software, Inc, a provider of software and services to the investment management industry, announces that its financial results for the second quarter ended 30 June 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,” says Stephanie DiMarco, founder and chief executive officer of Advent. “We are seeing tremendous growth internationally and continued demand in the US. 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 30 June 2008, compared to $58.0 million as of 31 March 2008. Deferred revenues as of 30 June 2008 were $130.6 million, compared to $122.9 million as of 31 March 2008.

Non-GAAP income from operations for the second quarter of 2008 was $9.4 million, resulting in non-GAAP operating margin of 15%. This represents a 27% increase compared to non-GAAP income from operations of $7.4 million and non-GAAP operating margin of 14% in the second quarter of 2007.

On a non-GAAP basis, net income for the second quarter of 2008 was $6.2 million, or $0.22 per diluted share, which represented an increase of 26% compared with $4.9 million, or $0.18 per diluted share, for the second quarter of 2007. 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.

Advent was selected by TIAA-CREF, the 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.

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.

Advent has also announced that its Chief Financial Officer, Craig Collins, has left the Company. Collins will spend more time with family and pursue other opportunities. 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.

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