Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ADVENT SOFTWARE INC /DE/ | a12-17233_18k.htm |
| EX-99.2 - EX-99.2 - ADVENT SOFTWARE INC /DE/ | a12-17233_1ex99d2.htm |
Advent Software Reports Second Quarter 2012 Results
Company Achieves Record Quarterly Revenue of $90 Million and
Record Second Quarter Bookings of Over $7 Million
SAN FRANCISCO — July 30, 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 second quarter ended June 30, 2012.
“I am pleased to report Advent’s second quarter financial results and am honored to lead Advent as we embark on an exciting phase in our evolution. Despite the challenging market environment, we achieved record quarterly revenues, record second quarter bookings and 22% non-GAAP operating margin,” said Pete Hess, Chief Executive Officer of Advent. “Our strong performance was the result of continued demand for our market-leading solutions as we help transform our clients’ businesses by eliminating boundaries between systems, information and people.”
SECOND QUARTER 2012 RESULTS
GAAP Results for Continuing Operations
The Company reported quarterly revenue of $89.7 million for the second quarter of 2012, compared to $80.1 million in the second quarter of 2011, a 12% increase.
Operating income for the second quarter of 2012 was $12.1 million, or 13% of revenue, compared to $10.4 million or 13% of revenue for the second quarter of 2011.
Net income for the second quarter of 2012 was $7.2 million compared to $7.1 million in the second quarter of 2011.
On a fully diluted basis, earnings per share in the second quarter of 2012 were $0.14, up $0.01 when compared to the second quarter of 2011.
Operating cash flow in the second quarter of 2012 was $14.9 million, compared with $20.2 million in the second quarter of 2011. Cash, cash equivalents and marketable securities totaled $134.8 million as of June 30, 2012, compared to $136.4 million as of December 31, 2011.
The Company repurchased approximately 745,000 shares of its common stock in the second quarter of 2012 for a total cash outlay of $19.3 million and at an average price of $25.96 per share.
Total deferred revenue as of June 30, 2012 was $163.6 million, compared to $174.9 million as of December 31, 2011.
Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the second quarter of 2012 was $20.0 million, or 22% of revenue. This represents a 14% increase compared to $17.5 million from continuing operations, or 22% of revenue, in the second quarter of 2011. On a fully diluted basis, non-GAAP earnings per share were $0.24 in the second quarter of 2012 and represent a 14% increase from non-GAAP diluted earnings per share of $0.21 in the second quarter of 2011.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
SECOND QUARTER HIGHLIGHTS
· Record Second Quarter Bookings: The Annual Contract Value (ACV) of our new contract bookings in the second quarter of 2012 will contribute $7.2 million in annual revenue once the contracts are fully implemented.
· Continued Momentum: New clients represented a broad cross-section of the investment management industry across all our platforms, from hedge funds and asset managers to family offices, fund administrators and the growing advisory market. New clients included Potamus Trading LLC, CI Investments, SeaStone Capital Management, Johns Hopkins University, Kylin Management LLC, HD Vest, Good Harbor Financial, LLC, Karpus Investment Management, and Madison Asset Management. In the second quarter, Advent also expanded into Brazil and signed Vinci Partners, a Brazilian investment management firm, who have chosen Geneva and Geneva World Investor to support management of their offshore investment strategies.
· Industry Recognition and Award-Winning Solutions: Advent’s technology continued to receive industry awards and win honors around the world. Recent awards include: FTF News’s Most Innovative Mobile Technology award; HFM European Hedge Fund Services Awards named Advent as Best Technology for Start-Up Funds; and the Company was named Best Technology Provider in the 2012 Citywealth Magic Circle Awards.
FINANCIAL GUIDANCE
Advent updates the following financial guidance for the third quarter and fiscal year 2012:
|
Guidance |
|
Q3 2012 |
|
FY 2012 |
|
|
Total Revenue ($M) |
|
$89-$91 |
|
$358-$362 |
|
|
YoY Revenue Growth |
|
5% - 8% |
|
10% - 11% |
|
|
GAAP Operating Margin |
|
n/a |
|
14.0% - 14.5% |
|
|
Amortization of Intangibles (% of revenue) |
|
n/a |
|
3% |
|
|
Stock Compensation Expense (% of revenue) |
|
n/a |
|
6% |
|
|
Non-GAAP Operating Margin |
|
n/a |
|
23.0% - 23.5% |
|
|
Operating Cash Flow ($M) |
|
n/a |
|
$83-$86 |
|
|
Capital Expenditures ($M) |
|
n/a |
|
$11-$13 |
|
|
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 Q2 2012 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q2 2012 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) 259-0251
and request conference ID #74347526. Telephone replay will be available through midnight August 8, 2012. The replay number for domestic callers is (888) 286-8010, and for international callers is (617) 801-6888, with the conference ID of #97737359.
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 market opportunities, and any 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®, 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 Ltd 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 2011 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 Syncova is a mark of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.
CONTACT
Media Contact:
Amanda Diamondstein-Cieplinska
Advent Software, Inc.
(415) 645-1668
adiamond@advent.com
Investor Relations Contact:
Meg Pardo
Advent Software, Inc.
(415) 645-1584
mpardo@advent.com
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(GAAP, Unaudited)
|
|
|
June 30 |
|
December 31 |
| ||
|
|
|
2012 |
|
2011 |
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
52,250 |
|
$ |
65,525 |
|
|
Short-term marketable securities |
|
78,472 |
|
69,908 |
| ||
|
Accounts receivable, net |
|
56,732 |
|
62,125 |
| ||
|
Deferred taxes, current |
|
16,304 |
|
16,294 |
| ||
|
Prepaid expenses and other |
|
25,728 |
|
23,660 |
| ||
|
Total current assets |
|
229,486 |
|
237,512 |
| ||
|
Property and equipment, net |
|
40,316 |
|
42,301 |
| ||
|
Goodwill |
|
204,084 |
|
204,621 |
| ||
|
Other intangibles, net |
|
44,383 |
|
49,521 |
| ||
|
Long-term marketable securities |
|
4,056 |
|
917 |
| ||
|
Deferred taxes, long-term |
|
27,906 |
|
30,751 |
| ||
|
Other assets |
|
13,723 |
|
15,927 |
| ||
|
Noncurrent assets of discontinued operation |
|
2,006 |
|
2,006 |
| ||
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
565,960 |
|
$ |
583,556 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
11,090 |
|
$ |
10,558 |
|
|
Accrued liabilities |
|
32,021 |
|
40,029 |
| ||
|
Deferred revenues |
|
155,343 |
|
166,945 |
| ||
|
Income taxes payable |
|
3,701 |
|
2,972 |
| ||
|
Short-term debt |
|
5,000 |
|
5,000 |
| ||
|
Current liabilities of discontinued operation |
|
748 |
|
488 |
| ||
|
Total current liabilities |
|
207,903 |
|
225,992 |
| ||
|
Deferred revenues, long-term |
|
8,262 |
|
7,926 |
| ||
|
Long-term debt |
|
42,500 |
|
45,000 |
| ||
|
Other long-term liabilities |
|
16,975 |
|
16,944 |
| ||
|
Noncurrent liabilities of discontinued operation |
|
3,814 |
|
4,633 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities |
|
279,454 |
|
300,495 |
| ||
|
|
|
|
|
|
| ||
|
Stockholders’ equity: |
|
|
|
|
| ||
|
Common stock |
|
507 |
|
510 |
| ||
|
Additional paid-in capital |
|
438,598 |
|
429,734 |
| ||
|
Accumulated deficit |
|
(158,916 |
) |
(154,053 |
) | ||
|
Accumulated other comprehensive income |
|
6,317 |
|
6,870 |
| ||
|
Total stockholders’ equity |
|
286,506 |
|
283,061 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
565,960 |
|
$ |
583,556 |
|
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(GAAP, Unaudited)
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net revenues: |
|
|
|
|
|
|
|
|
| ||||
|
Recurring revenues |
|
$ |
80,942 |
|
$ |
71,448 |
|
$ |
159,662 |
|
$ |
138,775 |
|
|
Non-recurring revenues |
|
8,782 |
|
8,623 |
|
16,966 |
|
16,622 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total net revenues |
|
89,724 |
|
80,071 |
|
176,628 |
|
155,397 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Cost of revenues (1): |
|
|
|
|
|
|
|
|
| ||||
|
Recurring revenues |
|
17,820 |
|
15,103 |
|
34,746 |
|
29,891 |
| ||||
|
Non-recurring revenues |
|
10,936 |
|
9,911 |
|
20,604 |
|
17,150 |
| ||||
|
Amortization of developed technology |
|
2,573 |
|
2,161 |
|
5,114 |
|
3,677 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total cost of revenues |
|
31,329 |
|
27,175 |
|
60,464 |
|
50,718 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Gross margin |
|
58,395 |
|
52,896 |
|
116,164 |
|
104,679 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Operating expenses (1): |
|
|
|
|
|
|
|
|
| ||||
|
Sales and marketing |
|
19,711 |
|
18,683 |
|
38,157 |
|
36,867 |
| ||||
|
Product development |
|
16,501 |
|
14,467 |
|
33,300 |
|
27,109 |
| ||||
|
General and administrative |
|
9,198 |
|
8,745 |
|
18,867 |
|
17,829 |
| ||||
|
Amortization of other intangibles |
|
956 |
|
571 |
|
1,912 |
|
891 |
| ||||
|
Restructuring (benefit) charges |
|
(34 |
) |
48 |
|
70 |
|
74 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total operating expenses |
|
46,332 |
|
42,514 |
|
92,306 |
|
82,770 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
12,063 |
|
10,382 |
|
23,858 |
|
21,909 |
| ||||
|
Interest and other income (expense), net |
|
(803 |
) |
(53 |
) |
(975 |
) |
(22 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations before income taxes |
|
11,260 |
|
10,329 |
|
22,883 |
|
21,887 |
| ||||
|
Provision for income taxes |
|
4,063 |
|
3,259 |
|
8,369 |
|
6,913 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net income from continuing operations |
|
$ |
7,197 |
|
$ |
7,070 |
|
$ |
14,514 |
|
$ |
14,974 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Discontinued operation: |
|
|
|
|
|
|
|
|
| ||||
|
Net income (loss) from discontinued operation (net of applicable taxes of $162, $(16), $147, and $1,328, respectively) |
|
245 |
|
(24 |
) |
222 |
|
1,800 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net income |
|
$ |
7,442 |
|
$ |
7,046 |
|
$ |
14,736 |
|
$ |
16,774 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic net income per share (2): |
|
|
|
|
|
|
|
|
| ||||
|
Continuing operations |
|
$ |
0.14 |
|
$ |
0.13 |
|
$ |
0.29 |
|
$ |
0.29 |
|
|
Discontinued operation |
|
0.00 |
|
0.00 |
|
0.00 |
|
0.03 |
| ||||
|
Total operations |
|
$ |
0.15 |
|
$ |
0.13 |
|
$ |
0.29 |
|
$ |
0.32 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted net income per share (2): |
|
|
|
|
|
|
|
|
| ||||
|
Continuing operations |
|
$ |
0.14 |
|
$ |
0.13 |
|
$ |
0.27 |
|
$ |
0.27 |
|
|
Discontinued operation |
|
0.00 |
|
0.00 |
|
0.00 |
|
0.03 |
| ||||
|
Total operations |
|
$ |
0.14 |
|
$ |
0.13 |
|
$ |
0.28 |
|
$ |
0.30 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted average shares used to compute net income per share: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
50,754 |
|
52,490 |
|
50,887 |
|
52,345 |
| ||||
|
Diluted |
|
52,977 |
|
55,111 |
|
53,117 |
|
55,492 |
| ||||
|
(1) Includes stock-based employee compensation expense as follows: |
|
Cost of recurring revenues |
|
$ |
610 |
|
$ |
504 |
|
$ |
1,195 |
|
$ |
1,007 |
|
|
Cost of non-recurring revenues |
|
264 |
|
345 |
|
595 |
|
592 |
| ||||
|
Total cost of revenues |
|
874 |
|
849 |
|
1,790 |
|
1,599 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Sales and marketing |
|
1,729 |
|
1,469 |
|
3,386 |
|
2,969 |
| ||||
|
Product development |
|
1,438 |
|
1,246 |
|
2,898 |
|
2,421 |
| ||||
|
General and administrative |
|
1,043 |
|
1,079 |
|
1,899 |
|
2,113 |
| ||||
|
Total operating expenses |
|
4,210 |
|
3,794 |
|
8,183 |
|
7,503 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total stock-based employee compensation expense |
|
$ |
5,084 |
|
$ |
4,643 |
|
$ |
9,973 |
|
$ |
9,102 |
|
|
(2) Net income per share is based on actual calculated values and totals may not sum due to rounding. |
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(GAAP, Unaudited)
|
|
|
Six Months Ended June 30 |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
Cash flows from operating activities: |
|
|
|
|
| ||
|
Net income |
|
$ |
14,736 |
|
$ |
16,774 |
|
|
Adjustment to net income for discontinued operation |
|
(222 |
) |
(1,800 |
) | ||
|
Net income from continuing operations |
|
$ |
14,514 |
|
$ |
14,974 |
|
|
|
|
|
|
|
| ||
|
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: |
|
|
|
|
| ||
|
Stock-based compensation |
|
9,973 |
|
9,102 |
| ||
|
Excess tax benefit from stock-based compensation |
|
(3,118 |
) |
(2,775 |
) | ||
|
Depreciation and amortization |
|
12,851 |
|
9,826 |
| ||
|
Amortization of debt issuance costs |
|
190 |
|
— |
| ||
|
Gain on disposal of fixed assets |
|
(16 |
) |
— |
| ||
|
Provision for doubtful accounts |
|
200 |
|
94 |
| ||
|
Provision for (reduction of) sales returns |
|
735 |
|
(235 |
) | ||
|
Deferred income taxes |
|
2,588 |
|
(183 |
) | ||
|
Other |
|
(144 |
) |
136 |
| ||
|
Effect of statement of operations adjustments |
|
23,259 |
|
15,965 |
| ||
|
Changes in operating assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
5,109 |
|
(4,665 |
) | ||
|
Prepaid and other assets |
|
277 |
|
(1,923 |
) | ||
|
Accounts payable |
|
532 |
|
2,363 |
| ||
|
Accrued liabilities |
|
(7,020 |
) |
(3,929 |
) | ||
|
Deferred revenues |
|
(12,000 |
) |
3,031 |
| ||
|
Income taxes payable |
|
3,847 |
|
5,998 |
| ||
|
Effect of changes in operating assets and liabilities |
|
(9,255 |
) |
875 |
| ||
|
|
|
|
|
|
| ||
|
Net cash provided by operating activities from continuing operations |
|
28,518 |
|
31,814 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from investing activities: |
|
|
|
|
| ||
|
Cash used in acquisitions, net of cash acquired |
|
(700 |
) |
(97,092 |
) | ||
|
Purchases of property and equipment |
|
(3,720 |
) |
(4,471 |
) | ||
|
Capitalized software development costs |
|
(1,700 |
) |
(1,887 |
) | ||
|
Purchases of marketable securities |
|
(72,270 |
) |
(28,604 |
) | ||
|
Sales and maturities of marketable securities |
|
60,344 |
|
60,933 |
| ||
|
|
|
|
|
|
| ||
|
Net cash used in investing activities from continuing operations |
|
(18,046 |
) |
(71,121 |
) | ||
|
|
|
|
|
|
| ||
|
Cash flows from financing activities: |
|
|
|
|
| ||
|
Proceeds from common stock issued from exercises of stock options |
|
3,269 |
|
4,580 |
| ||
|
Withholding taxes related to equity award net share settlement |
|
(4,610 |
) |
(4,761 |
) | ||
|
Proceeds from common stock issued under the employee stock purchase plan |
|
3,448 |
|
3,146 |
| ||
|
Repurchase of common stock |
|
(26,125 |
) |
(10,163 |
) | ||
|
Repayment of loan borrowing |
|
(2,500 |
) |
— |
| ||
|
Excess tax benefits from stock-based compensation |
|
3,118 |
|
2,775 |
| ||
|
|
|
|
|
|
| ||
|
Net cash used in financing activities from continuing operations |
|
(23,400 |
) |
(4,423 |
) | ||
|
|
|
|
|
|
| ||
|
Net cash transferred from (to) discontinued operation |
|
(337 |
) |
2,978 |
| ||
|
|
|
|
|
|
| ||
|
Effect of exchange rate changes on cash and cash equivalents |
|
(10 |
) |
261 |
| ||
|
|
|
|
|
|
| ||
|
Net change in cash and cash equivalents from continuing operations |
|
(13,275 |
) |
(40,491 |
) | ||
|
Cash and cash equivalents of continuing operations at beginning of period |
|
65,525 |
|
81,948 |
| ||
|
|
|
|
|
|
| ||
|
Cash and cash equivalents of continuing operations at end of period |
|
$ |
52,250 |
|
$ |
41,457 |
|
|
|
|
Six Months Ended June 30 |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
Supplemental disclosure of cash flow information |
|
|
|
|
| ||
|
Cash flow from discontiued operation: |
|
|
|
|
| ||
|
Net cash used in operating activities |
|
$ |
(337 |
) |
$ |
(26 |
) |
|
Net cash provided by investing activities |
|
— |
|
3,004 |
| ||
|
Net cash transferred from (to) continuing operations |
|
337 |
|
(2,978 |
) | ||
|
Effect of exchange rates on cash and cash equivalents |
|
— |
|
— |
| ||
|
Net change in cash and cash equivalents from discontinued operations |
|
— |
|
— |
| ||
|
Cash and cash equivalents of discontinued operation at beginning of period |
|
— |
|
— |
| ||
|
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 June 30, 2012 for Continuing Operations |
| |||||||||||
|
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
| |||
|
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
$ |
58,395 |
|
65% |
|
$ |
12,063 |
|
13% |
|
$ |
7,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Amortization of acquired developed technology |
|
1,901 |
|
|
|
1,901 |
|
|
|
1,901 |
| |||
|
Amortization of other acquired intangibles |
|
— |
|
|
|
956 |
|
|
|
956 |
| |||
|
Stock-based compensation - cost of revenues |
|
874 |
|
|
|
874 |
|
|
|
874 |
| |||
|
Stock-based compensation - operating expenses |
|
— |
|
|
|
4,210 |
|
|
|
4,210 |
| |||
|
Restructuring benefit |
|
— |
|
|
|
(34 |
) |
|
|
(34 |
) | |||
|
Income tax adjustment for non-GAAP (1) |
|
— |
|
|
|
— |
|
|
|
(2,645 |
) | |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Non-GAAP |
|
$ |
61,170 |
|
68% |
|
$ |
19,970 |
|
22% |
|
$ |
12,459 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.14 |
| ||
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.24 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
52,977 |
| |||
|
|
|
Three Months Ended June 30, 2011 for Continuing Operations |
| |||||||||||
|
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
| |||
|
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
$ |
52,896 |
|
66% |
|
$ |
10,382 |
|
13% |
|
$ |
7,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Amortization of acquired developed technology |
|
1,384 |
|
|
|
1,384 |
|
|
|
1,384 |
| |||
|
Amortization of other acquired intangibles |
|
— |
|
|
|
571 |
|
|
|
571 |
| |||
|
Stock-based compensation - cost of revenues |
|
849 |
|
|
|
849 |
|
|
|
849 |
| |||
|
Stock-based compensation - operating expenses |
|
— |
|
|
|
3,794 |
|
|
|
3,794 |
| |||
|
Acquisition related expenses |
|
— |
|
|
|
486 |
|
|
|
486 |
| |||
|
Restructuring charges |
|
— |
|
|
|
48 |
|
|
|
48 |
| |||
|
Income tax adjustment for non-GAAP (1) |
|
— |
|
|
|
— |
|
|
|
(2,852 |
) | |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Non-GAAP |
|
$ |
55,129 |
|
69% |
|
$ |
17,514 |
|
22% |
|
$ |
11,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.13 |
| ||
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.21 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
55,111 |
| |||
(1) The estimated non-GAAP effective tax rate was 35% for the three months ended June 30, 2012 and 2011, 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 |
| ||||
|
|
|
|
|
|
|
|
|
|
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% |
|