Attached files
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8-K - 8-K - ADVENT SOFTWARE INC /DE/ | a10-2715_18k.htm |
EX-99.2 - EX-99.2 - ADVENT SOFTWARE INC /DE/ | a10-2715_1ex99d2.htm |
Exhibit 99.1
Media Contact: |
|
Investor Relations Contact: |
Jessica Miller |
|
Heidi Flaherty |
Advent Software, Inc. |
|
Advent Software, Inc. |
(415) 645-1668 |
|
(415) 645-1145 |
jmiller@advent.com |
|
flaherty@advent.com |
Advent Software Reports Fourth Quarter and Fiscal Year 2009 Results
Quarterly Revenue of $66 Million and Annual Contract Value of $9 Million
SAN FRANCISCO February 1, 2010 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 and full year ended December 31, 2009.
Im extremely proud of our fourth quarter and 2009 financial results. Despite a very challenging environment in 2009, the strength of our business model enabled us to grow annual revenues, profits and operating cash flow, said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. The breadth of our product portfolio and our customer focus had us well positioned for the renewed demand we experienced in the fourth quarter.
FOURTH QUARTER AND FISCAL YEAR 2009 RESULTS
On October 1, 2009, the Company completed the sale of its New York-based subsidiary MicroEdge, Inc. to Vista Equity Partners. All past and future reported results of the MicroEdge business are now reported as discontinued operations of the Company.
GAAP Results for Continuing Operations
The Company reported quarterly revenue from continuing operations of $66.3 million for the fourth quarter of 2009, compared to $66.5 million in the fourth quarter of 2008. Total annual revenues from continuing operations for the year ended December 31, 2009 were $259.5 million, a 9% increase over the $237.9 million recorded in 2008.
Operating income from continuing operations for the fourth quarter of 2009 was $6.4 million, or 10% of revenue, up from $6.2 million or 9% of revenue for the fourth quarter of 2008. Operating income from continuing operations for the year ended December 31, 2009 was $27.9 million, or 11% of revenue, which represented an increase of 55% compared to $18.0 million, or 8% of revenue, for 2008.
Net income from continuing operations for the fourth quarter of 2009 was $4.3 million compared to $5.6 million from continuing operations in the fourth quarter of 2008. Net income from continuing operations for the year ended December 31, 2009 was $20.8 million compared to $17.3 million for 2008, a 20% increase.
On a fully diluted basis, earnings per share from continuing operations in the fourth quarter of 2009 were $0.16 and represent a 23% decrease from $0.21 from continuing operations in the
fourth quarter of 2008. On a fully diluted basis, earnings per share from continuing operations for the year ended December 31, 2009 were $0.79 and represent a 26% increase compared to $0.62 per share for 2008.
Operating cash flow from continuing operations in the fourth quarter of 2009 was $20.8 million, compared with $20.2 million in the fourth quarter of 2008, a 3% increase. Operating cash flow from continuing operations for the year ended December 31, 2009 was $72.4 million, compared with $70.3 million for 2008, a 3% increase. Cash, cash equivalents and short and long-term marketable securities totaled $117.6 million as of December 31, 2009, compared to $45.1 million as of December 31, 2008.
Total deferred revenues from continuing operations were $146.1 million as of December 31, 2009, compared to $141.3 million from continuing operations as of December 31, 2008, a 3% increase.
Non-GAAP Results for Continuing Operations
Non-GAAP operating income from continuing operations for the fourth quarter of 2009 was $11.8 million, or 18% of revenue. This represents a 3% decrease compared to $12.2 million from continuing operations, or 18% of revenue, in the fourth quarter of 2008. Non-GAAP operating income from continuing operations for the year ended December 31, 2009 was $51.0 million, or 20% of revenue. This represents a 39% increase compared to non-GAAP operating income from continuing operations of $36.7 million, or 15% of revenue for 2008.
Non-GAAP diluted earnings per share from continuing operations were $0.28 in the fourth quarter of 2009 compared to $0.28 in the fourth quarter of 2008. On a non-GAAP basis, diluted earnings per share from continuing operations were $1.23 for the year ended December 31, 2009, a 45% increase compared to $0.85 per share for 2008.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
GAAP Results for Discontinued Operations
Net income from discontinued operations for the fourth quarter of 2009 was $13.6 million compared to $0.6 million from discontinued operations in the fourth quarter of 2008. Net income from discontinued operations for the year ended December 31, 2009 was $16.1 million, compared to $1.6 million from discontinued operations for 2008. Net income from discontinued operations for the fourth quarter and fiscal 2009 included a post-tax gain of $13.6 million from the disposition of MicroEdge.
On a fully diluted basis, earnings per share from discontinued operations in the fourth quarter of 2009 were $0.50 compared to $0.02 from discontinued operations in the fourth quarter of 2008. On a fully diluted basis, earnings per share from discontinued operations for the year ended December 31, 2009 were $0.61, compared to $0.06 from discontinued operations for 2008.
FOURTH QUARTER HIGHLIGHTS
· Stronger Bookings: The term license contracts signed in the fourth quarter of 2009 will contribute $8.9 million in annual contract value once they are fully implemented.
· Customer Momentum: Advent saw continued momentum in customer wins for Advent Portfolio Exchange® (APX) and Geneva®. The Company signed 35 locally installed APX contracts in the fourth quarter, which, combined with the fourth quarter APX outsourcing
contracts, brings the total number of global APX contracts signed to nearly 600. Additionally, Advent signed 11 Geneva® contracts in the fourth quarter.
· Further Expansion into Asia Pacific: In the fourth quarter, Advent opened a new office in Beijing, China. The office is staffed with more than 50 employees who were previously part of the Companys contract workforce. It is Advents largest office outside of North America.
· Received Buy-Side Technology Award: For the third consecutive year, Buy-Side Technology magazine named Geneva® Best Buy-Side Portfolio Accounting Product.
FINANCIAL GUIDANCE
Advent announces the following financial guidance for the first quarter and fiscal year 2010:
Guidance |
|
Q1 2010 Continuing |
|
FY 2010 Continuing |
|
Total Revenue ($M) |
|
$65-$67 |
|
$272-$280 |
|
GAAP Operating Margin |
|
n/a |
|
11%-12% |
|
Amortization of Intangibles (% of revenue) |
|
n/a |
|
1%-2% |
|
Stock Compensation Expense (% of revenue) |
|
n/a |
|
7%-8% |
|
Non-GAAP Operating Margin |
|
n/a |
|
20%-21% |
|
Operating Cash Flow ($M) |
|
n/a |
|
$77-$82 |
|
Capital Expenditures ($M) |
|
n/a |
|
$18-$22 |
|
INVESTOR CALL
Advent Software, Inc. will host its Q4 2009 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q4 2009 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 800-510-0219 and request conference ID #42966359. A replay will be available through midnight, February 8, 2010, by calling 888-286-8010 and referencing conference ID #35959304. 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 worlds leading financial professionals since 1983. Firms in more than 60 countries use Advent technology. Advents 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 GAAP Measures to Non-GAAP Measures.
FORWARD-LOOKING STATEMENTS
The financial projections under Financial Guidance, our revenue growth, market acceptance and demand for our products and new product releases, our competitive position, market conditions and their impact on our business, international expansion, and the momentum of the business, and other forward-looking statements included in this presentation reflect managements 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® and Moxy® products; the successful development, release and market acceptance of new products and product enhancements; continued uncertainties and fluctuations in the financial markets; the Companys ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Tamale Software, 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 2008 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. All other company names or marks mentioned herein are those of their respective owners.
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(GAAP, Unaudited)
|
|
December 31 |
|
December 31 |
|
||
|
|
2009 |
|
2008 |
|
||
ASSETS |
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
57,877 |
|
$ |
45,098 |
|
Short-term investments |
|
31,273 |
|
|
|
||
Accounts receivable, net |
|
44,246 |
|
46,564 |
|
||
Deferred taxes, current |
|
15,081 |
|
12,458 |
|
||
Prepaid expenses and other |
|
22,350 |
|
19,732 |
|
||
Current assets of discontinued operation |
|
494 |
|
9,443 |
|
||
|
|
|
|
|
|
||
Total current assets |
|
171,321 |
|
133,295 |
|
||
Property and equipment, net |
|
33,945 |
|
39,150 |
|
||
Goodwill |
|
144,827 |
|
143,044 |
|
||
Other intangibles, net |
|
22,965 |
|
27,217 |
|
||
Long-term investments |
|
28,995 |
|
500 |
|
||
Deferred taxes, long-term |
|
40,502 |
|
54,166 |
|
||
Other assets |
|
9,642 |
|
10,919 |
|
||
Noncurrent assets of discontinued operation |
|
2,095 |
|
11,303 |
|
||
|
|
|
|
|
|
||
Total assets |
|
$ |
454,292 |
|
$ |
419,594 |
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable |
|
$ |
4,708 |
|
$ |
5,312 |
|
Accrued liabilities |
|
31,066 |
|
25,781 |
|
||
Deferred revenues |
|
140,186 |
|
135,217 |
|
||
Income taxes payable |
|
1,616 |
|
978 |
|
||
Current liabilities of discontinued operation |
|
719 |
|
13,953 |
|
||
|
|
|
|
|
|
||
Total current liabilities |
|
178,295 |
|
181,241 |
|
||
Long-term debt |
|
|
|
25,000 |
|
||
Deferred revenues, long-term |
|
5,879 |
|
6,083 |
|
||
Other long-term liabilities |
|
12,969 |
|
10,072 |
|
||
Noncurrent liabilities of discontinued operation |
|
5,115 |
|
1,375 |
|
||
|
|
|
|
|
|
||
Total liabilities |
|
202,258 |
|
223,771 |
|
||
|
|
|
|
|
|
||
Stockholders equity: |
|
|
|
|
|
||
Common stock |
|
259 |
|
257 |
|
||
Additional paid-in capital |
|
386,623 |
|
365,351 |
|
||
Accumulated deficit |
|
(145,584 |
) |
(176,484 |
) |
||
Accumulated other comprehensive income |
|
10,736 |
|
6,699 |
|
||
|
|
|
|
|
|
||
Total stockholders equity |
|
252,034 |
|
195,823 |
|
||
|
|
|
|
|
|
||
Total liabilities and stockholders equity |
|
$ |
454,292 |
|
$ |
419,594 |
|
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 |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Net revenues: |
|
|
|
|
|
|
|
|
|
||||
Term license, maintenance and other recurring |
|
$ |
56,343 |
|
$ |
53,111 |
|
$ |
222,759 |
|
$ |
191,444 |
|
Perpetual license fees |
|
3,642 |
|
5,323 |
|
11,275 |
|
16,808 |
|
||||
Professional services and other |
|
6,348 |
|
8,055 |
|
25,474 |
|
29,632 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Total net revenues |
|
66,333 |
|
66,489 |
|
259,508 |
|
237,884 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenues (1): |
|
|
|
|
|
|
|
|
|
||||
Term license, maintenance and other recurring |
|
12,094 |
|
12,217 |
|
46,823 |
|
43,798 |
|
||||
Perpetual license fees |
|
72 |
|
120 |
|
327 |
|
488 |
|
||||
Professional services and other |
|
6,587 |
|
8,819 |
|
29,777 |
|
34,158 |
|
||||
Amortization of developed technology |
|
1,473 |
|
1,380 |
|
5,618 |
|
3,061 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Total cost of revenues |
|
20,226 |
|
22,536 |
|
82,545 |
|
81,505 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Gross margin |
|
46,107 |
|
43,953 |
|
176,963 |
|
156,379 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses (1): |
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
16,200 |
|
15,648 |
|
62,738 |
|
57,939 |
|
||||
Product development |
|
12,915 |
|
11,580 |
|
48,443 |
|
42,897 |
|
||||
General and administrative |
|
10,175 |
|
9,671 |
|
36,107 |
|
35,887 |
|
||||
Amortization of other intangibles |
|
351 |
|
439 |
|
1,666 |
|
1,160 |
|
||||
Acquired in-process technology |
|
|
|
400 |
|
|
|
400 |
|
||||
Restructuring charges |
|
38 |
|
5 |
|
130 |
|
101 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Total operating expenses |
|
39,679 |
|
37,743 |
|
149,084 |
|
138,384 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations |
|
6,428 |
|
6,210 |
|
27,879 |
|
17,995 |
|
||||
Interest income and other income (expense), net |
|
(345 |
) |
(455 |
) |
1,240 |
|
3,178 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Income from continuing operations before income taxes |
|
6,083 |
|
5,755 |
|
29,119 |
|
21,173 |
|
||||
Provision for income taxes |
|
1,733 |
|
119 |
|
8,345 |
|
3,857 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Net income from continuing operations |
|
$ |
4,350 |
|
$ |
5,636 |
|
$ |
20,774 |
|
$ |
17,316 |
|
|
|
|
|
|
|
|
|
|
|
||||
Discontinued operation: |
|
|
|
|
|
|
|
|
|
||||
Net income from discontinued operation (net of applicable taxes of $4,230, $402, $5,639 and $1,097, respectively) |
|
13,610 |
|
557 |
|
16,109 |
|
1,579 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
17,960 |
|
$ |
6,193 |
|
$ |
36,883 |
|
$ |
18,895 |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic net income per share: |
|
|
|
|
|
|
|
|
|
||||
Continuing operations |
|
$ |
0.17 |
|
$ |
0.21 |
|
$ |
0.82 |
|
$ |
0.65 |
|
Discontinued operation |
|
0.53 |
|
0.02 |
|
0.63 |
|
0.06 |
|
||||
Total operations |
|
$ |
0.70 |
|
$ |
0.23 |
|
$ |
1.45 |
|
$ |
0.71 |
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net income per share: |
|
|
|
|
|
|
|
|
|
||||
Continuing operations |
|
$ |
0.16 |
|
$ |
0.21 |
|
$ |
0.79 |
|
$ |
0.62 |
|
Discontinued operation |
|
0.50 |
|
0.02 |
|
0.61 |
|
0.06 |
|
||||
Total operations |
|
$ |
0.67 |
|
$ |
0.23 |
|
$ |
1.39 |
|
$ |
0.68 |
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares used to compute net income per share: |
|
|
|
|
|
|
|
|
|
||||
Basic |
|
25,736 |
|
26,478 |
|
25,450 |
|
26,640 |
|
||||
Diluted |
|
26,974 |
|
26,781 |
|
26,454 |
|
27,893 |
|
(1) Includes stock-based employee compensation expense as follows:
Cost of term license, maintenance and other recurring revenues |
|
$ |
364 |
|
$ |
376 |
|
$ |
1,697 |
|
$ |
1,283 |
|
Cost of professional services and other revenues |
|
302 |
|
347 |
|
1,269 |
|
1,086 |
|
||||
Total cost of revenues |
|
666 |
|
723 |
|
2,966 |
|
2,369 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
1,125 |
|
1,390 |
|
5,390 |
|
4,706 |
|
||||
Product development |
|
1,216 |
|
1,032 |
|
4,857 |
|
3,815 |
|
||||
General and administrative |
|
1,180 |
|
1,180 |
|
4,949 |
|
5,218 |
|
||||
Total operating expenses |
|
3,521 |
|
3,602 |
|
15,196 |
|
13,739 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Total stock-based employee compensation expense |
|
$ |
4,187 |
|
$ |
4,325 |
|
$ |
18,162 |
|
$ |
16,108 |
|
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
Twelve Months Ended December 31 |
|
||||
|
|
2009 |
|
2008 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
||
Net income |
|
$ |
36,883 |
|
$ |
18,895 |
|
Adjustment to net income for discontinued operation |
|
(16,109 |
) |
(1,579 |
) |
||
Net income from continuing operations |
|
20,774 |
|
17,316 |
|
||
|
|
|
|
|
|
||
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: |
|
|
|
|
|
||
Stock-based compensation |
|
18,162 |
|
16,108 |
|
||
Depreciation and amortization |
|
16,692 |
|
12,657 |
|
||
Acquired in-process research and development |
|
|
|
400 |
|
||
Loss on dispositions of fixed assets |
|
94 |
|
6 |
|
||
Provision for doubtful accounts |
|
215 |
|
611 |
|
||
Provision for sales returns |
|
315 |
|
219 |
|
||
Gain on investments |
|
(2,056 |
) |
(3,393 |
) |
||
Deferred income taxes |
|
8,129 |
|
3,060 |
|
||
Other |
|
199 |
|
(126 |
) |
||
Effect of statement of operations adjustments |
|
41,750 |
|
29,542 |
|
||
Changes in operating assets and liabilities: |
|
|
|
|
|
||
Accounts receivable |
|
2,094 |
|
(2,658 |
) |
||
Prepaid and other assets |
|
(1,906 |
) |
(588 |
) |
||
Accounts payable |
|
(262 |
) |
1,147 |
|
||
Accrued liabilities |
|
7,829 |
|
(3,489 |
) |
||
Deferred revenues |
|
4,450 |
|
29,409 |
|
||
Income taxes payable |
|
(2,301 |
) |
(342 |
) |
||
Effect of changes in operating assets and liabilities |
|
9,904 |
|
23,479 |
|
||
|
|
|
|
|
|
||
Net cash provided by operating activities from continuing operations |
|
72,427 |
|
70,337 |
|
||
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
||
Net cash used in acquisitions |
|
(200 |
) |
(27,775 |
) |
||
Purchases of property and equipment |
|
(4,575 |
) |
(21,851 |
) |
||
Capitalized software development costs |
|
(2,893 |
) |
(2,307 |
) |
||
Purchases of marketable securities |
|
(60,000 |
) |
|
|
||
Proceeds from sale of private equity investments |
|
2,056 |
|
3,393 |
|
||
Proceeds from disposition of fixed assets |
|
37 |
|
|
|
||
Change in restricted cash |
|
611 |
|
(248 |
) |
||
|
|
|
|
|
|
||
Net cash used in investing activities from continuing operations |
|
(64,964 |
) |
(48,788 |
) |
||
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
||
Proceeds from common stock issued from exercises of stock options |
|
8,637 |
|
6,095 |
|
||
Withholding taxes related to equity award net share settlement |
|
(2,196 |
) |
(2,078 |
) |
||
Proceeds from common stock issued under the employee stock purchase plan |
|
5,621 |
|
5,018 |
|
||
Repurchase of common stock |
|
(14,578 |
) |
(61,572 |
) |
||
Proceeds from long term borrowing |
|
|
|
25,000 |
|
||
Repayment of long-term borrowing |
|
(25,000 |
) |
|
|
||
Excess tax benefits from stock-based compensation |
|
499 |
|
263 |
|
||
|
|
|
|
|
|
||
Net cash used in financing activities from continuing operations |
|
(27,017 |
) |
(27,274 |
) |
||
|
|
|
|
|
|
||
Net cash transferred from discontinued operation |
|
31,959 |
|
2,707 |
|
||
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
374 |
|
(693 |
) |
||
|
|
|
|
|
|
||
Net change in cash and cash equivalents from continuing operations |
|
12,779 |
|
(3,711 |
) |
||
Cash and cash equivalents of continuing operations at beginning of period |
|
45,098 |
|
48,809 |
|
||
|
|
|
|
|
|
||
Cash and cash equivalents of continuing operations at end of period |
|
$ |
57,877 |
|
$ |
45,098 |
|
|
|
Twelve Months Ended December 31 |
|
||||
|
|
2009 |
|
2008 |
|
||
Supplemental disclosure of cash flow information |
|
|
|
|
|
||
Cash flow from discontiued operation: |
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
2,621 |
|
$ |
6,650 |
|
Net cash provided by (used in) investing activities |
|
26,358 |
|
(1,417 |
) |
||
Net cash transferred to continuing operations |
|
(31,959 |
) |
(2,708 |
) |
||
Effect of exchange rates on cash and cash equivalents |
|
(7 |
) |
(52 |
) |
||
Net change in cash and cash equivalents from discontinued operations |
|
(2,987 |
) |
2,473 |
|
||
Cash and cash equivalents of discontinued operation at beginning of period |
|
3,253 |
|
780 |
|
||
Cash and cash equivalents of discontinued operation at end of period |
|
$ |
266 |
|
$ |
3,253 |
|
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 Advents 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, 2009 for Continuing Operations |
|
|||||||||||
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
|
|||
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
$ |
46,107 |
|
70% |
|
$ |
6,428 |
|
10% |
|
$ |
4,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of acquired developed technology |
|
782 |
|
|
|
782 |
|
|
|
782 |
|
|||
Amortization of other acquired intangibles |
|
|
|
|
|
351 |
|
|
|
351 |
|
|||
Stock-based compensation - cost of revenues |
|
666 |
|
|
|
666 |
|
|
|
666 |
|
|||
Stock-based compensation - operating expenses |
|
|
|
|
|
3,521 |
|
|
|
3,521 |
|
|||
Restructuring charges |
|
|
|
|
|
38 |
|
|
|
38 |
|
|||
Income tax adjustment for non-GAAP (1) |
|
|
|
|
|
|
|
|
|
(2,271 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-GAAP |
|
$ |
47,555 |
|
72% |
|
$ |
11,786 |
|
18% |
|
$ |
7,437 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.16 |
|
||
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.28 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
26,974 |
|
|
|
Three Months Ended December 31, 2008 for Continuing Operations |
|
|||||||||||
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
|
|||
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
$ |
43,953 |
|
66% |
|
$ |
6,210 |
|
9% |
|
$ |
5,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of acquired developed technology |
|
782 |
|
|
|
782 |
|
|
|
782 |
|
|||
Amortization of other acquired intangibles |
|
|
|
|
|
439 |
|
|
|
439 |
|
|||
Stock-based compensation - cost of revenues |
|
723 |
|
|
|
723 |
|
|
|
723 |
|
|||
Stock-based compensation - operating expenses |
|
|
|
|
|
3,602 |
|
|
|
3,602 |
|
|||
Restructuring charges |
|
|
|
|
|
5 |
|
|
|
5 |
|
|||
Acquired in-process research and development |
|
|
|
|
|
400 |
|
|
|
400 |
|
|||
Income tax adjustment for non-GAAP (1) |
|
|
|
|
|
|
|
|
|
(3,978 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-GAAP |
|
$ |
45,458 |
|
68% |
|
$ |
12,161 |
|
18% |
|
$ |
7,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.21 |
|
||
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.28 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
26,781 |
|
(1) The estimated non-GAAP effective tax rate was 35% for the three months ended December 31, 2009 and 2008, 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 Advents 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, 2009 for Continuing Operations |
|
|||||||||||
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
|
|||
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
$ |
176,963 |
|
68% |
|
$ |
27,879 |
|
11% |
|
$ |
20,774 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of acquired developed technology |
|
3,128 |
|
|
|
3,128 |
|
|
|
3,128 |
|
|||
Amortization of other acquired intangibles |
|
|
|
|
|
1,666 |
|
|
|
1,666 |
|
|||
Stock-based compensation - cost of revenues |
|
2,966 |
|
|
|
2,966 |
|
|
|
2,966 |
|
|||
Stock-based compensation - operating expenses |
|
|
|
|
|
15,196 |
|
|
|
15,196 |
|
|||
Restructuring charges |
|
|
|
|
|
130 |
|
|
|
130 |
|
|||
Investment gain |
|
|
|
|
|
|
|
|
|
(2,056 |
) |
|||
Income tax adjustment for non-GAAP (1) |
|
|
|
|
|
|
|
|
|
(9,207 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-GAAP |
|
$ |
183,057 |
|
71% |
|
$ |
50,965 |
|
20% |
|
$ |
32,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.79 |
|
||
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
1.23 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
26,454 |
|
|
|
Twelve Months Ended December 31, 2008 for Continuing Operations |
|
|||||||||||
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
|
|||
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
$ |
156,379 |
|
66% |
|
$ |
17,995 |
|
8% |
|
$ |
17,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Amortization of acquired developed technology |
|
938 |
|
|
|
938 |
|
|
|
938 |
|
|||
Amortization of other acquired intangibles |
|
|
|
|
|
1,160 |
|
|
|
1,160 |
|
|||
Stock-based compensation - cost of revenues |
|
2,369 |
|
|
|
2,369 |
|
|
|
2,369 |
|
|||
Stock-based compensation - operating expenses |
|
|
|
|
|
13,739 |
|
|
|
13,739 |
|
|||
Restructuring charges |
|
|
|
|
|
101 |
|
|
|
101 |
|
|||
Acquired in-process research and development |
|
|
|
|
|
400 |
|
|
|
400 |
|
|||
Investment gain |
|
|
|
|
|
|
|
|
|
(3,393 |
) |
|||
Income tax adjustment for non-GAAP (1) |
|
|
|
|
|
|
|
|
|
(8,913 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-GAAP |
|
$ |
159,686 |
|
67% |
|
$ |
36,702 |
|
15% |
|
$ |
23,717 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
|
|||
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.62 |
|
||
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.85 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
27,893 |
|
(1) The estimated non-GAAP effective tax rate was 35% for the twelve months ended December 31, 2009 and 2008, 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, 2010 |
|
||||
|
|
Continuing Operations |
|
||||
|
|
Operating Income % |
|
||||
|
|
|
|
|
|
|
|
Projected GAAP |
|
11% |
|
to |
|
12% |
|
|
|
|
|
|
|
|
|
Projected amortization of acquired developed technology and other acquired intangible asset adjustment |
|
1% |
|
to |
|
2% |
|
Projected stock based compensation adjustment |
|
7% |
|
to |
|
8% |
|
|
|
|
|
|
|
|
|
Projected non-GAAP |
|
20% |
|
to |
|
21% |
|