EX-99.1 2 a12-4286_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Advent Software Achieves Record Quarterly Revenue of $86 Million and Record Annual Revenue of $326 Million for 2011

Company Reports Record ACV of $34 Million for the Year

 

SAN FRANCISCO — February 6, 2012 — Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the fourth quarter ended December 31, 2011.

 

“I am very proud of Advent’s 2011 performance and strong fourth quarter finish. We achieved record revenue and record annual contract value, while simultaneously expanding non-GAAP operating margin to 22 percent for the year,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent.  “In addition to the Company’s strong financial performance, we successfully executed on our core strategies to strengthen our portfolio of products and services and expand our global footprint and addressable market.  As a result, we head into 2012 with great momentum for Advent’s next phase of growth.”

 

FOURTH QUARTER 2011 RESULTS

 

GAAP Results for Continuing Operations

 

The Company reported quarterly revenue from continuing operations of $86.3 million for the fourth quarter of 2011, up from $75.6 million in the fourth quarter of 2010, a 14% increase.  Total annual revenues from continuing operations for the year ended December 31, 2011 were $326.2 million, compared to $283.5 million recorded in 2010, a 15% increase.

 

Operating income from continuing operations for the fourth quarter of 2011 was $10.1 million, or 12% of revenue, compared to $11.7 million or 16% of revenue for the fourth quarter of 2010.  Operating income from continuing operations for the year ended December 31, 2011 was $42.6 million, or 13% of revenue, compared to $36.3 million, or 13% of revenue, for 2010.

 

Net income from continuing operations for the fourth quarter of 2011 was $6.5 million compared to $9.2 million in the fourth quarter of 2010, a 29% decrease.   Net income from continuing operations for the year ended December 31, 2011 was $28.3 million compared to $24.3 million for 2010, a 16% increase.

 

On a fully diluted basis, earnings per share from continuing operations in the fourth quarter of 2011 were $0.12, compared to diluted earnings per share of $0.17 in the fourth quarter of 2010. On a fully diluted basis, earnings per share from continuing operations for the year ended December 31, 2011 were $0.52, compared to $0.45 per share for 2010.

 

Operating cash flow from continuing operations in the fourth quarter of 2011 was $27.6 million, compared with $24.4 million in the fourth quarter of 2010, a 13% increase. Operating cash flow from continuing operations for the year ended December 31, 2011 was $83.2 million, compared with $76.2 million for 2010, a 9% increase.  Cash, cash equivalents and short and long-term marketable securities totaled $136.3 million as of December 31, 2011, compared to $152.0 million as of December 31, 2010.

 

Total deferred revenues were $174.9 million as of December 31, 2011, compared to $154.2 million from continuing operations as of December 31, 2010, a 13% increase.

 



 

Non-GAAP Results for Continuing Operations

 

Non-GAAP operating income from continuing operations for the fourth quarter of 2011 was $18.5 million, or 21% of revenue. This compares to $17.9 million from continuing operations, or 24% of revenue, in the fourth quarter of 2010.  Non-GAAP operating income from continuing operations for the year ended December 31, 2011 was $72.2 million, or 22% of revenue.  This represents a 20% increase compared to non-GAAP operating income of $60.2 million, or 21% of revenue for 2010.

 

On a fully diluted basis, non-GAAP earnings per share from continuing operations were $0.22 in the fourth quarter of 2011 and represent a 5% increase from non-GAAP diluted earnings per share of $0.21 in the fourth quarter of 2010.  On a fully diluted basis, non-GAAP earnings per share from continuing operations were $0.86 for the year ended December 31, 2011, a 21% increase compared to $0.71 per share for 2010.

 

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

 

FOURTH QUARTER HIGHLIGHTS

 

·                  Strong Fundamental Business Metrics:  The Annual Contract Value (ACV) of our new contract bookings in the fourth quarter of 2011 will contribute $13.7 million in annual revenue once the contracts are fully implemented.  New clients represent a broad cross-section of the investment management industry, from hedge funds and asset managers to family offices, fund administrators and the growing advisory market. The renewal rate was 93% for the third quarter of 2011, a 2 point improvement over the same period last year.

 

·                  Global Expansion and Execution:  The fourth quarter saw strong demand for Advent’s leading solutions outside of North America.  Advent signed new contracts with firms in Europe, the Middle East, Africa, and Asia.  Revenue from international operations accounted for 18% of total revenue in the fourth quarter and 18% for the full year 2011.

 

·                  Launch of Advent Portfolio Exchange® (APX) 4.0 and Tradex® 4.0:  Advent launched its most extensive update of APX to date.  With this release, Advent introduced customizable dashboard capabilities to offer greater flexibility and control over report content and format — delivering instant access to more information and with greater clarity.  Tradex®, an easy to use web-based system, allows firms that distribute funds to replace labor-intensive manual procedures for fund share order processing with a highly automated work flow and can be tailored to a specific client and market needs. With these releases, Advent continues to set a new standard in comprehensive portfolio management for both asset managers and wealth managers around the globe.

 

Advent’s Board of Directors appointed Advent’s President Peter Hess to the position of Chief Executive Officer (CEO) and President, effective June 30, 2012. Stephanie DiMarco, Advent’s founder and CEO, will step down as CEO at the end of June 2012. Ms. DiMarco continues to serve as a Director on Advent’s Board and will be transitioning to an advisory role for the company’s senior management.

 



 

FINANCIAL GUIDANCE

 

Advent provides the following financial guidance for the first quarter and fiscal year 2012:

 

Guidance

 

Q1 2012

 

FY 2012

Total Revenue ($M)

 

$86-$88

 

$361-$368

YoY Revenue Growth

 

14% - 17%

 

11% - 13%

GAAP Operating Margin

 

n/a

 

14.0% - 14.5%

Amortization of Intangibles (% of revenue)

 

n/a

 

3%

Stock Compensation Expense (% of revenue)

 

n/a

 

6%

Non-GAAP Operating Margin

 

n/a

 

23.0% - 23.5%

Operating Cash Flow ($M)

 

n/a

 

$90-$96

Capital Expenditures ($M)

 

n/a

 

$13-$15

Growth of Weighted Average Shares Outstanding, excluding any share repurchases

 

n/a

 

0.25%-0.75% per quarter

Effective Tax Rate (GAAP)

 

n/a

 

35% - 40%

Effective Tax Rate (non-GAAP)

 

n/a

 

35%

 

INVESTOR CALL

 

Advent Software, Inc. will host its Q4 2011 quarterly earnings conference call at 5:00 p.m. Eastern time today.  The Q4 2011 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at http://investor.advent.com.  To participate via phone, please dial (866) 356-3095 and request conference ID #51691155.  A replay will be available through midnight, February 13, 2012.  The replay number for domestic callers is (888) 286-8010, and for international callers is (617) 801-6888, with the conference ID of #68833003.  The conference call will also be webcast live and then archived on http://investor.advent.com.

 

ABOUT ADVENT

 

Advent Software, Inc. (www.advent.com), a global firm, has provided trusted solutions to the world’s leading financial professionals since 1983.  Firms in more than 60 countries use Advent technology.  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 on Advent products visit http://www.advent.com/about/resources/demos/pr.

 

ABOUT NON-GAAP FINANCIAL INFORMATION

 

This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the accompanying tables entitled “Reconciliation of Selected Continuing Operations’ GAAP Measures to Non-GAAP Measures.”

 

FORWARD-LOOKING STATEMENTS

 

The financial projections under Financial Guidance, and statements regarding our momentum and other forward-looking statements included in this presentation reflect management’s best judgment based on factors currently known and involve risks and uncertainties; our actual

 



 

results may differ materially from those discussed here.  These risks and uncertainties include: potential fluctuations in new contract bookings, renewal rates, operating results and future growth rates; continued market acceptance of our Advent Portfolio Exchange®, Geneva®, Tradex®, and Moxy® products; the successful development, release and market acceptance of new products and product enhancements; uncertainties and fluctuations in the financial markets; the Company’s ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Syncova Solutions Limited and Black Diamond Performance Reporting LLC, and achieving expected synergies and results; and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2010 annual report on Form 10-K.  The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

 

Advent, the Advent logo, Advent Software, Advent Portfolio Exchange, Geneva and Moxy are registered trademarks of Advent Software, Inc, and Tradex is a registered mark in Norway and the European Union of Advent Norway AS.  All other company names or marks mentioned herein are those of their respective owners.

 

CONTACT
Media Contact:
Smita Topolski
Advent Software, Inc.
(415) 645-1668
stopolsk@advent.com

 

Investor Relations Contact:
Heidi Flaherty
Advent Software, Inc.
(415) 645-1145
flaherty@advent.com

 



 

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(GAAP, Unaudited)

 

 

 

December 31

 

 

 

2011

 

2010

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

65,525

 

$

81,948

 

Short-term marketable securities

 

69,908

 

70,075

 

Accounts receivable, net

 

62,125

 

49,960

 

Deferred taxes, current

 

16,294

 

16,358

 

Prepaid expenses and other

 

23,660

 

17,864

 

Total current assets

 

237,512

 

236,205

 

Property and equipment, net

 

42,301

 

41,524

 

Goodwill

 

204,621

 

145,580

 

Other intangibles, net

 

49,521

 

19,772

 

Long-term marketable securities

 

917

 

 

Deferred taxes, long-term

 

30,751

 

33,591

 

Other assets

 

15,927

 

12,059

 

Noncurrent assets of discontinued operation

 

2,006

 

2,095

 

 

 

 

 

 

 

Total assets

 

$

583,556

 

$

490,826

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

10,558

 

$

6,737

 

Accrued liabilities

 

40,029

 

34,080

 

Deferred revenues

 

166,945

 

147,896

 

Income taxes payable

 

2,972

 

1,691

 

Short-term debt

 

5,000

 

 

Current liabilities of discontinued operation

 

488

 

165

 

Total current liabilities

 

225,992

 

190,569

 

Deferred revenues, long-term

 

7,926

 

6,337

 

Long-term debt

 

45,000

 

 

Other long-term liabilities

 

16,944

 

14,844

 

Noncurrent liabilities of discontinued operation

 

4,633

 

5,228

 

 

 

 

 

 

 

Total liabilities

 

300,495

 

216,978

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock

 

510

 

520

 

Additional paid-in capital

 

429,734

 

411,600

 

Accumulated deficit

 

(154,053

)

(146,887

)

Accumulated other comprehensive income

 

6,870

 

8,615

 

Total stockholders’ equity

 

283,061

 

273,848

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

583,556

 

$

490,826

 

 



 

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(GAAP, Unaudited)

 

 

 

Three Months Ended December 31

 

Twelve Months Ended December 31

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

Net revenues:

 

 

 

 

 

 

 

 

 

Recurring revenues

 

$

77,760

 

$

66,715

 

$

291,486

 

$

252,054

 

Non-recurring revenues

 

8,525

 

8,839

 

34,762

 

31,447

 

 

 

 

 

 

 

 

 

 

 

Total net revenues

 

86,285

 

75,554

 

326,248

 

283,501

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues (1):

 

 

 

 

 

 

 

 

 

Recurring revenues

 

16,711

 

13,395

 

62,329

 

51,261

 

Non-recurring revenues

 

9,953

 

7,353

 

39,623

 

29,175

 

Amortization of developed technology

 

2,555

 

1,503

 

8,820

 

6,374

 

 

 

 

 

 

 

 

 

 

 

Total cost of revenues

 

29,219

 

22,251

 

110,772

 

86,810

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

57,066

 

53,303

 

215,476

 

196,691

 

 

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

 

 

Sales and marketing

 

19,496

 

18,480

 

74,807

 

69,151

 

Product development

 

16,065

 

13,179

 

57,561

 

51,416

 

General and administrative

 

9,904

 

9,391

 

37,040

 

37,707

 

Amortization of other intangibles

 

956

 

295

 

2,807

 

1,272

 

Restructuring charges

 

565

 

230

 

696

 

840

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

46,986

 

41,575

 

172,911

 

160,386

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

10,080

 

11,728

 

42,565

 

36,305

 

Interest income and other income (expense), net

 

(406

)

(123

)

(1,243

)

(895

)

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes

 

9,674

 

11,605

 

41,322

 

35,410

 

Provision for income taxes

 

3,143

 

2,357

 

12,991

 

11,091

 

 

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

6,531

 

$

9,248

 

$

28,331

 

$

24,319

 

 

 

 

 

 

 

 

 

 

 

Discontinued operation:

 

 

 

 

 

 

 

 

 

Net income (loss) from discontinued operation (net of applicable taxes of $(114), $23, $1,197 and $(46), respectively)

 

66

 

(68

)

1,839

 

(166

)

 

 

 

 

 

 

 

 

 

 

Net income

 

$

6,597

 

$

9,180

 

$

30,170

 

$

24,153

 

 

 

 

 

 

 

 

 

 

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.13

 

$

0.18

 

$

0.55

 

$

0.47

 

Discontinued operation

 

 

 

0.04

 

 

Total operations

 

$

0.13

 

$

0.18

 

$

0.58

 

$

0.47

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share:

 

 

 

 

 

 

 

 

 

Continuing operations

 

$

0.12

 

$

0.17

 

$

0.52

 

$

0.45

 

Discontinued operation

 

 

 

0.03

 

 

Total operations

 

$

0.12

 

$

0.17

 

$

0.56

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used to compute net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

50,848

 

51,706

 

51,797

 

51,535

 

Diluted

 

53,051

 

54,823

 

54,085

 

54,476

 

 


(1) Includes stock-based employee compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

Cost of recurring revenues

 

$

619

 

$

466

 

$

2,154

 

$

1,775

 

Cost of non-recurring revenues

 

341

 

295

 

1,314

 

1,140

 

Total cost of revenues

 

960

 

761

 

3,468

 

2,915

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

1,579

 

1,578

 

6,305

 

5,866

 

Product development

 

1,340

 

1,318

 

5,138

 

5,200

 

General and administrative

 

1,092

 

1,135

 

4,227

 

4,449

 

Total operating expenses

 

4,011

 

4,031

 

15,670

 

15,515

 

 

 

 

 

 

 

 

 

 

 

Total stock-based employee compensation expense

 

$

4,971

 

$

4,792

 

$

19,138

 

$

18,430

 

 



 

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Twelve Months Ended December 31

 

 

 

2011

 

2010

 

Cash flows from operating activities:

 

 

 

 

 

Net income

 

$

30,170

 

$

24,153

 

Adjustment to net income for discontinued operation

 

(1,839

)

166

 

Net income from continuing operations

 

$

28,331

 

$

24,319

 

 

 

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:

 

 

 

 

 

Stock-based compensation

 

19,138

 

18,430

 

Depreciation and amortization

 

22,632

 

17,610

 

Loss on dispositions of fixed assets

 

2

 

22

 

Provision for doubtful accounts

 

230

 

188

 

Reduction of sales return reserves

 

(187

)

(616

)

Non-cash impairment loss

 

500

 

 

Deferred income taxes

 

4,700

 

8,423

 

Other

 

101

 

241

 

Effect of statement of operations adjustments

 

47,116

 

44,298

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

(10,198

)

(5,619

)

Prepaid and other assets

 

(6,977

)

2,393

 

Accounts payable

 

3,734

 

1,997

 

Accrued liabilities

 

3,069

 

3,053

 

Deferred revenues

 

18,560

 

8,519

 

Income taxes payable

 

(451

)

(2,742

)

Effect of changes in operating assets and liabilities

 

7,737

 

7,601

 

 

 

 

 

 

 

Net cash provided by operating activities from continuing operations

 

83,184

 

76,218

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Cash used in acquisitions, net of cash acquired

 

(97,092

)

(4,719

)

Purchases of property and equipment

 

(11,252

)

(17,418

)

Capitalized software development costs

 

(2,358

)

(2,144

)

Purchases of marketable securities

 

(89,236

)

(46,496

)

Sales and maturities of marketable securities

 

87,428

 

36,496

 

 

 

 

 

 

 

Net cash used in investing activities from continuing operations

 

(112,510

)

(34,281

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Proceeds from common stock issued from exercises of stock options

 

7,189

 

14,020

 

Withholding taxes related to equity award net share settlement

 

(5,775

)

(5,467

)

Proceeds from common stock issued under the employee stock purchase plan

 

6,158

 

5,793

 

Repurchase of common stock

 

(51,582

)

(35,881

)

Proceeds from debt

 

50,000

 

 

Debt issuance costs

 

(1,901

)

 

Excess tax benefits from stock-based compensation

 

7,055

 

3,878

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities from continuing operations

 

11,144

 

(17,657

)

 

 

 

 

 

 

Net cash transferred from (to) discontinued operation

 

1,655

 

(112

)

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

104

 

(97

)

 

 

 

 

 

 

Net change in cash and cash equivalents from continuing operations

 

(16,423

)

24,071

 

Cash and cash equivalents of continuing operations at beginning of period

 

81,948

 

57,877

 

 

 

 

 

 

 

Cash and cash equivalents of continuing operations at end of period

 

$

65,525

 

$

81,948

 

 

 

 

Twelve Months Ended December 31

 

 

 

2011

 

2010

 

Supplemental disclosure of cash flow information

 

 

 

 

 

Cash flow from discontiued operation:

 

 

 

 

 

Net cash used in operating activities

 

$

(1,349

)

$

(377

)

Net cash provided by investing activities

 

3,004

 

 

Net cash transferred from (to) continuing operations

 

(1,655

)

112

 

Effect of exchange rates on cash and cash equivalents

 

 

(1

)

Net change in cash and cash equivalents from discontinued operations

 

 

(266

)

Cash and cash equivalents of discontinued operation at beginning of period

 

 

266

 

Cash and cash equivalents of discontinued operation at end of period

 

$

 

$

 

 



 

ADVENT SOFTWARE, INC.

RECONCILIATION OF SELECTED CONTINUING OPERATIONS’ GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except per share data)

(Unaudited)

 

To supplement our condensed consolidated financial statements presented on a GAAP basis, Advent uses non-GAAP measures of continuing operations’ operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advent’s underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States of America. 

 

 

 

Three Months Ended December 31, 2011 for Continuing Operations

 

 

 

Gross

 

Gross

 

Operating

 

Operating

 

Net

 

 

 

Margin

 

Margin %

 

Income

 

Income %

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

57,066

 

66%

 

$

10,080

 

12%

 

$

6,531

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired developed technology

 

1,899

 

 

 

1,899

 

 

 

1,899

 

Amortization of other acquired intangibles

 

 

 

 

956

 

 

 

956

 

Stock-based compensation - cost of revenues

 

960

 

 

 

960

 

 

 

960

 

Stock-based compensation - operating expenses

 

 

 

 

4,011

 

 

 

4,011

 

Restructuring charges

 

 

 

 

565

 

 

 

565

 

Income tax adjustment for non-GAAP (1)

 

 

 

 

 

 

 

(3,180

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

$

59,925

 

69%

 

$

18,471

 

21%

 

$

11,742

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

$

0.12

 

Non-GAAP

 

 

 

 

 

 

 

 

 

$

0.22

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute diluted net income per share

 

 

 

 

 

 

 

 

 

53,051

 

 

 

 

Three Months Ended December 31, 2010 for Continuing Operations

 

 

 

Gross

 

Gross

 

Operating

 

Operating

 

Net

 

 

 

Margin

 

Margin %

 

Income

 

Income %

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

53,303

 

71%

 

$

11,728

 

16%

 

$

9,248

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired developed technology

 

831

 

 

 

831

 

 

 

831

 

Amortization of other acquired intangibles

 

 

 

 

295

 

 

 

295

 

Stock-based compensation - cost of revenues

 

761

 

 

 

761

 

 

 

761

 

Stock-based compensation - operating expenses

 

 

 

 

4,031

 

 

 

4,031

 

Restructuring charges

 

 

 

 

230

 

 

 

230

 

Income tax adjustment for non-GAAP (1)

 

 

 

 

 

 

 

(3,857

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

$

54,895

 

73%

 

$

17,876

 

24%

 

$

11,539

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

$

0.17

 

Non-GAAP

 

 

 

 

 

 

 

 

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute diluted net income per share

 

 

 

 

 

 

 

 

 

54,823

 

 


(1)          The estimated non-GAAP effective tax rate was 35% for the three months ended December 31, 2011 and 2010, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes.

 



 

ADVENT SOFTWARE, INC.

RECONCILIATION OF SELECTED CONTINUING OPERATIONS’ GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except per share data)

(Unaudited)

 

To supplement our condensed consolidated financial statements presented on a GAAP basis, Advent uses non-GAAP measures of continuing operations’ operating income, net income and net income per share, which are adjusted to exclude certain costs, expenses, gains and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Advent’s underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP results are among the information management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States of America. 

 

 

 

Twelve Months Ended December 31, 2011 for Continuing Operations

 

 

 

Gross

 

Gross

 

Operating

 

Operating

 

Net

 

 

 

Margin

 

Margin %

 

Income

 

Income %

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

215,476

 

66%

 

$

42,565

 

13%

 

$

28,331

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired developed technology

 

6,019

 

 

 

6,019

 

 

 

6,019

 

Amortization of other acquired intangibles

 

 

 

 

2,807

 

 

 

2,807

 

Stock-based compensation - cost of revenues

 

3,468

 

 

 

3,468

 

 

 

3,468

 

Stock-based compensation - operating expenses

 

 

 

 

15,670

 

 

 

15,670

 

Acquisition related

 

 

 

 

936

 

 

 

936

 

Investment loss

 

 

 

 

 

 

 

500

 

Restructuring charges

 

 

 

 

696

 

 

 

696

 

Income tax adjustment for non-GAAP (1)

 

 

 

 

 

 

 

(12,005

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

$

224,963

 

69%

 

$

72,161

 

22%

 

$

46,422

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

$

0.52

 

Non-GAAP

 

 

 

 

 

 

 

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute diluted net income per share

 

 

 

 

 

 

 

 

 

54,085

 

 

 

 

Twelve Months Ended December 31, 2010 for Continuing Operations

 

 

 

Gross

 

Gross

 

Operating

 

Operating

 

Net

 

 

 

Margin

 

Margin %

 

Income

 

Income %

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

$

196,691

 

69%

 

$

36,305

 

13%

 

$

24,319

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired developed technology

 

3,325

 

 

 

3,325

 

 

 

3,325

 

Amortization of other acquired intangibles

 

 

 

 

1,272

 

 

 

1,272

 

Stock-based compensation - cost of revenues

 

2,915

 

 

 

2,915

 

 

 

2,915

 

Stock-based compensation - operating expenses

 

 

 

 

15,515

 

 

 

15,515

 

Restructuring charges

 

 

 

 

840

 

 

 

840

 

Income tax adjustment for non-GAAP (1)

 

 

 

 

 

 

 

(9,656

)

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP

 

$

202,931

 

72%

 

$

60,172

 

21%

 

$

38,530

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

 

 

 

 

 

 

 

$

0.45

 

Non-GAAP

 

 

 

 

 

 

 

 

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used to compute diluted net income per share

 

 

 

 

 

 

 

 

 

54,476

 

 


(1)          The estimated non-GAAP effective tax rate was 35% for the twelve months ended December 31, 2011 and 2010, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes.

 



 

Advent Software, Inc.

Reconciliation of Projected Continuing Operations’ GAAP Operating Income %

to Non-GAAP Operating Income %

(Preliminary and unaudited)

 

Advent provides projections of non-GAAP measures of its continuing operations’ operating income, which exclude certain costs, expenses, gains and losses which it believes is appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our projected continuing operations’ GAAP results are made with the intent of providing management and investors a more complete understanding continuing operations’ underlying operational results and trends and our marketplace performance. In addition, these adjusted non-GAAP projections are among the information management uses as a basis for planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with generally accepted accounting principles in the United States of America.

 

 

 

Twelve Months Ended December 31, 2012

 

 

 

Continuing Operations

 

 

 

Operating Income %

 

 

 

 

 

 

 

 

 

Projected GAAP

 

14.0%

 

to

 

14.5%

 

 

 

 

 

 

 

 

 

Projected amortization of acquired developed technology and other acquired intangible asset adjustment

 

 

 

3%

 

 

 

Projected stock-based compensation adjustment

 

 

 

6%

 

 

 

 

 

 

 

 

 

 

 

Projected non-GAAP

 

23.0%

 

to

 

23.5%