Attached files
| file | filename |
|---|---|
| 8-K - 8-K - ADVENT SOFTWARE INC /DE/ | a13-4297_18k.htm |
| EX-99.2 - EX-99.2 - ADVENT SOFTWARE INC /DE/ | a13-4297_1ex99d2.htm |
Exhibit 99.1
Advent Software Reports Fourth Quarter and Full Year 2012 Results
Company Achieves Record Quarterly Revenue of $92 Million and
Fourth Quarter Non-GAAP Operating Profit of $25 Million
SAN FRANCISCO — February 4, 2013 — 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, 2012.
“I am pleased to report that Advent delivered a strong fourth quarter and there is great momentum in the business,” said Pete Hess, Chief Executive Officer of Advent. “We continued to execute our strategy and increased our footprint both in the US and around the globe. This coming year marks our 30th anniversary and our business has never been stronger and we are excited to continue to partner with our clients to transform the investment management industry for the next 30 years.”
FOURTH QUARTER AND FULL YEAR 2012 RESULTS
GAAP Results for Continuing Operations
The company reported quarterly revenue of $92.0 million for the fourth quarter of 2012, compared to $86.3 million in the fourth quarter of 2011, a 7% increase. Total annual revenues for the year ended December 31, 2012 were $358.8 million, compared to $326.2 million recorded in 2011, a 10% increase.
Operating income for the fourth quarter of 2012 was $12.7 million, or 14% of revenue, compared to $10.1 million, or 12% of revenue, for the fourth quarter of 2011. The fourth quarter of 2012 results included a $3.6 million restructuring charge related to the company’s reorganization. Operating income for the year ended December 31, 2012 was $49.2 million, or 14% of revenue, compared to $42.6 million, or 13% of revenue, for 2011.
Net income for the fourth quarter of 2012 was $8.0 million compared to $6.5 million in the fourth quarter of 2011. Net income for the year ended December 31, 2012 was $30.2 million compared to $28.3 million for 2011, a 7% increase.
On a fully diluted basis, earnings per share in the fourth quarter of 2012 was $0.16 compared to $0.12 in the fourth quarter of 2011. On a fully diluted basis, earnings per share for the year ended December 31, 2012 was $0.58, compared to $0.52 for 2011.
Operating cash flows in the fourth quarter of 2012 totaled $32.8 million, compared with $27.6 million in the fourth quarter of 2011. Operating cash flows for the year ended December 31, 2012 totaled $86.6 million, compared with $83.2 million for 2011, a 4% increase.
Cash, cash equivalents and marketable securities totaled $231 million as of December 31, 2012, compared to $136 million as of December 31, 2011. Total outstanding debt as of December 31, 2012 was $95 million compared to $50 million as of December 31, 2011. Total deferred revenue was $183 million as of December 31, 2012, compared to $175 million as of December 31, 2011, a 5% increase.
Non-GAAP Results for Continuing Operations
Non-GAAP operating income for the fourth quarter of 2012 was $24.6 million, or 26.7% of revenue. This represents a 33% increase compared to $18.5 million of non-GAAP operating income, or 21.4% of revenue, in the fourth quarter of 2011. Non-GAAP operating income for the year ended December 31, 2012 was $85.0 million, or 23.7% of revenue. This represents an
18% increase compared to $72.2 million of non-GAAP operating income, or 22.1% of revenue, for 2011.
On a fully diluted basis, non-GAAP earnings per share was $0.30 in the fourth quarter of 2012 and represents a 37% increase from non-GAAP diluted net income per share of $0.22 in the fourth quarter of 2011. On a fully diluted basis, non-GAAP net income per share was $1.03 for the year ended December 31, 2012, a 21% increase compared to $0.86 per share for 2011.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
FOURTH QUARTER HIGHLIGHTS
· Fourth Quarter Bookings: The annual contract value of our new contract bookings in the fourth quarter of 2012 will contribute $11.1 million in incremental annual revenue once the contracts are fully implemented. New clients represented all types of investment managers around the world including Moneta Group, Wedgewood Partners, QV Investors Inc., Courtiers Investment Services Limited, and Gjensidige Investeringsradgivning AS, amongst others.
· Enhanced Functionality for Solutions: In the fourth quarter, we launched coordinated releases of Advent Portfolio Exchange® (APX), Moxy®, and their associated products, providing clients with expanded instrument coverage, enhanced data presentation and improved reconciliation processes.
· Award-Winning Solutions: APX was named “Best Buy-Side CRM Product” by Buy-Side Technology magazine. The annual award honors the accomplishments and innovations of products and services designed for buy-side investment professionals. In addition, Moxy® won “Best-in-Class” for Enterprise Support in the key industry analyst - CEB TowerGroup’s OMS Technology Analysis report.
FINANCIAL GUIDANCE
Advent provides the following financial guidance for the first quarter and fiscal year 2013:
|
Guidance |
|
Q1 2013 |
|
FY 2013 |
|
|
Total Revenue ($M) |
|
$91-$93 |
|
$373-$379 |
|
|
GAAP Operating Margin |
|
n/a |
|
17.5-18.0% |
|
|
Amortization of Intangibles (% of revenue) |
|
n/a |
|
3% |
|
|
Stock Compensation Expense |
|
n/a |
|
6% |
|
|
Restructuring Charge |
|
1% |
|
0.5% |
|
|
Non-GAAP Operating Margin |
|
n/a |
|
27.0-27.5% |
|
|
GAAP Effective Tax Rate |
|
20%* |
|
30%-35% |
|
|
Non-GAAP Effective Tax Rate |
|
n/a |
|
35% |
|
|
Operating Cash Flow ($M) |
|
n/a |
|
$93-$97 |
|
|
Capital Expenditures ($M) |
|
n/a |
|
$10-$12 |
|
*Q1 2013 GAAP Effective Tax Rate reflects the impact of the 2012 federal research and development tax credit enacted in January, 2013.
INVESTOR CALL
Advent Software, Inc. will host its fourth quarter 2012 earnings conference call at 5:00 p.m. Eastern time today. The fourth quarter 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) 510-9834 and request conference ID #35271995. Telephone replay will be available through midnight February 11, 2013. The replay number for domestic callers is (888) 286-8010, and for international callers is (617) 801-6888, with the conference ID of #60805668.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 financial professionals since 1983. Advent’s proven solutions can increase operational efficiency, reduce risk, and eliminate the boundaries between systems, information and people so you can focus on what you do best. With more than 4,500 client firms in over 60 countries, Advent has established itself as a leading provider of mission-critical solutions to meet the demands of investment management operations around the world. Advent is the only financial services software company to be awarded the Service Capability and Performance certification for being a world-class support and services 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” and “Reconciliation of Projected Continuing Operations’ GAAP Operating Income % to Non-GAAP Operating Income %”.
FORWARD-LOOKING STATEMENTS
The financial projections under Financial Guidance, and statements regarding the business momentum, strength of the business, 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, services and enhancements; uncertainties and fluctuations in the financial markets; the Company’s ability to satisfy contractual performance requirements; difficulties in achieving organizational objectives 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, and Moxy are registered trademarks of Advent Software, Inc. All other company names of 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:
Heidi Flaherty
Advent Software, Inc.
(415) 645-1145
flaherty@advent.com
ADVENT SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(GAAP, Unaudited)
|
|
|
December 31 |
|
December 31 |
| ||
|
|
|
2012 |
|
2011 |
| ||
|
ASSETS |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
58,217 |
|
$ |
65,525 |
|
|
Short-term marketable securities |
|
111,192 |
|
69,908 |
| ||
|
Accounts receivable, net |
|
61,069 |
|
62,125 |
| ||
|
Deferred taxes, current |
|
18,934 |
|
16,294 |
| ||
|
Prepaid expenses and other |
|
25,868 |
|
23,660 |
| ||
|
Current assets of discontinued operation |
|
88 |
|
— |
| ||
|
Total current assets |
|
275,368 |
|
237,512 |
| ||
|
Property and equipment, net |
|
37,269 |
|
42,301 |
| ||
|
Goodwill |
|
206,932 |
|
204,621 |
| ||
|
Other intangibles, net |
|
38,205 |
|
49,521 |
| ||
|
Long-term marketable securities |
|
61,552 |
|
917 |
| ||
|
Deferred taxes, long-term |
|
24,524 |
|
30,751 |
| ||
|
Other assets |
|
12,994 |
|
15,927 |
| ||
|
Noncurrent assets of discontinued operation |
|
1,609 |
|
2,006 |
| ||
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
658,453 |
|
$ |
583,556 |
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
5,190 |
|
$ |
10,558 |
|
|
Accrued liabilities |
|
37,096 |
|
40,029 |
| ||
|
Deferred revenues |
|
174,388 |
|
166,945 |
| ||
|
Income taxes payable |
|
5,593 |
|
2,972 |
| ||
|
Current portion of long-term debt |
|
10,000 |
|
5,000 |
| ||
|
Current liabilities of discontinued operation |
|
262 |
|
488 |
| ||
|
Total current liabilities |
|
232,529 |
|
225,992 |
| ||
|
Deferred revenues, long-term |
|
8,787 |
|
7,926 |
| ||
|
Long-term income taxes payable |
|
5,335 |
|
3,196 |
| ||
|
Long-term debt |
|
85,000 |
|
45,000 |
| ||
|
Other long-term liabilities |
|
13,139 |
|
13,748 |
| ||
|
Noncurrent liabilities of discontinued operation |
|
3,804 |
|
4,633 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities |
|
348,594 |
|
300,495 |
| ||
|
|
|
|
|
|
| ||
|
Stockholders’ equity: |
|
|
|
|
| ||
|
Common stock |
|
505 |
|
510 |
| ||
|
Additional paid-in capital |
|
453,585 |
|
429,734 |
| ||
|
Accumulated deficit |
|
(154,261 |
) |
(154,053 |
) | ||
|
Accumulated other comprehensive income |
|
10,030 |
|
6,870 |
| ||
|
Total stockholders’ equity |
|
309,859 |
|
283,061 |
| ||
|
|
|
|
|
|
| ||
|
Total liabilities and stockholders’ equity |
|
$ |
658,453 |
|
$ |
583,556 |
|
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 |
| ||||||||
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net revenues: |
|
|
|
|
|
|
|
|
| ||||
|
Recurring revenues |
|
$ |
83,875 |
|
$ |
77,760 |
|
$ |
324,627 |
|
$ |
291,486 |
|
|
Non-recurring revenues |
|
8,142 |
|
8,525 |
|
34,192 |
|
34,762 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total net revenues |
|
92,017 |
|
86,285 |
|
358,819 |
|
326,248 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Cost of revenues (1): |
|
|
|
|
|
|
|
|
| ||||
|
Recurring revenues |
|
16,991 |
|
16,711 |
|
68,953 |
|
62,329 |
| ||||
|
Non-recurring revenues |
|
9,890 |
|
9,953 |
|
43,505 |
|
39,623 |
| ||||
|
Amortization of developed technology |
|
2,558 |
|
2,555 |
|
10,258 |
|
8,820 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total cost of revenues |
|
29,439 |
|
29,219 |
|
122,716 |
|
110,772 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Gross margin |
|
62,578 |
|
57,066 |
|
236,103 |
|
215,476 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Operating expenses (1): |
|
|
|
|
|
|
|
|
| ||||
|
Sales and marketing |
|
18,566 |
|
19,496 |
|
74,688 |
|
74,807 |
| ||||
|
Product development |
|
16,637 |
|
16,065 |
|
67,014 |
|
57,561 |
| ||||
|
General and administrative |
|
10,144 |
|
9,904 |
|
37,763 |
|
37,040 |
| ||||
|
Amortization of other intangibles |
|
958 |
|
956 |
|
3,825 |
|
2,807 |
| ||||
|
Restructuring charges |
|
3,581 |
|
565 |
|
3,634 |
|
696 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total operating expenses |
|
49,886 |
|
46,986 |
|
186,924 |
|
172,911 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
12,692 |
|
10,080 |
|
49,179 |
|
42,565 |
| ||||
|
Interest and other income (expense), net |
|
(515 |
) |
(406 |
) |
(1,620 |
) |
(1,243 |
) | ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations before income taxes |
|
12,177 |
|
9,674 |
|
47,559 |
|
41,322 |
| ||||
|
Provision for income taxes |
|
4,147 |
|
3,143 |
|
17,328 |
|
12,991 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net income from continuing operations |
|
$ |
8,030 |
|
$ |
6,531 |
|
$ |
30,231 |
|
$ |
28,331 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Discontinued operation: |
|
|
|
|
|
|
|
|
| ||||
|
Net (loss) income from discontinued operation (net of applicable taxes of $(8), $(114), $126, and $1,197, respectively) |
|
(49 |
) |
66 |
|
184 |
|
1,839 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net income |
|
$ |
7,981 |
|
$ |
6,597 |
|
$ |
30,415 |
|
$ |
30,170 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic net income per share (2): |
|
|
|
|
|
|
|
|
| ||||
|
Continuing operations |
|
$ |
0.16 |
|
$ |
0.13 |
|
$ |
0.60 |
|
$ |
0.55 |
|
|
Discontinued operation |
|
0.00 |
|
0.00 |
|
0.00 |
|
0.04 |
| ||||
|
Total operations |
|
$ |
0.16 |
|
$ |
0.13 |
|
$ |
0.60 |
|
$ |
0.58 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted net income per share (2): |
|
|
|
|
|
|
|
|
| ||||
|
Continuing operations |
|
$ |
0.16 |
|
$ |
0.12 |
|
$ |
0.58 |
|
$ |
0.52 |
|
|
Discontinued operation |
|
0.00 |
|
0.00 |
|
0.00 |
|
0.03 |
| ||||
|
Total operations |
|
$ |
0.15 |
|
$ |
0.12 |
|
$ |
0.58 |
|
$ |
0.56 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted average shares used to compute net income per share: |
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
50,276 |
|
50,848 |
|
50,614 |
|
51,797 |
| ||||
|
Diluted |
|
51,802 |
|
53,051 |
|
52,425 |
|
54,085 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
| | |||||||||||||
|
(1) Includes stock-based employee compensation expense as follows: |
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Cost of recurring revenues |
|
$ |
595 |
|
$ |
619 |
|
$ |
2,405 |
|
$ |
2,154 |
|
|
Cost of non-recurring revenues |
|
310 |
|
341 |
|
1,236 |
|
1,314 |
| ||||
|
Total cost of revenues |
|
905 |
|
960 |
|
3,641 |
|
3,468 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Sales and marketing |
|
1,902 |
|
1,579 |
|
7,165 |
|
6,305 |
| ||||
|
Product development |
|
1,483 |
|
1,340 |
|
5,821 |
|
5,138 |
| ||||
|
General and administrative |
|
1,167 |
|
1,092 |
|
4,174 |
|
4,227 |
| ||||
|
Total operating expenses |
|
4,552 |
|
4,011 |
|
17,160 |
|
15,670 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total stock-based employee compensation expense |
|
$ |
5,457 |
|
$ |
4,971 |
|
$ |
20,801 |
|
$ |
19,138 |
|
(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)
|
|
|
Twelve Months Ended December 31 |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
Cash flows from operating activities: |
|
|
|
|
| ||
|
Net income |
|
$ |
30,415 |
|
$ |
30,170 |
|
|
Adjustment to net income for discontinued operation |
|
(184 |
) |
(1,839 |
) | ||
|
Net income from continuing operations |
|
$ |
30,231 |
|
$ |
28,331 |
|
|
|
|
|
|
|
| ||
|
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: |
|
|
|
|
| ||
|
Stock-based compensation |
|
20,801 |
|
19,138 |
| ||
|
Excess tax benefit from stock-based compensation |
|
(7,785 |
) |
(7,055 |
) | ||
|
Depreciation and amortization |
|
25,879 |
|
22,632 |
| ||
|
Amortization of debt issuance costs |
|
381 |
|
— |
| ||
|
Provision for doubtful accounts |
|
403 |
|
230 |
| ||
|
Provision for (reduction of) sales returns |
|
1,154 |
|
(187 |
) | ||
|
Non-cash impairment loss |
|
— |
|
500 |
| ||
|
Deferred income taxes |
|
5,230 |
|
4,700 |
| ||
|
Other |
|
(252 |
) |
103 |
| ||
|
Effect of statement of operations adjustments |
|
45,811 |
|
40,061 |
| ||
|
Changes in operating assets and liabilities: |
|
|
|
|
| ||
|
Accounts receivable |
|
575 |
|
(10,198 |
) | ||
|
Prepaid and other assets |
|
822 |
|
(6,977 |
) | ||
|
Accounts payable |
|
(5,368 |
) |
3,734 |
| ||
|
Accrued liabilities |
|
(2,055 |
) |
3,069 |
| ||
|
Deferred revenues |
|
7,151 |
|
18,560 |
| ||
|
Income taxes payable |
|
9,453 |
|
6,604 |
| ||
|
Effect of changes in operating assets and liabilities |
|
10,578 |
|
14,792 |
| ||
|
|
|
|
|
|
| ||
|
Net cash provided by operating activities from continuing operations |
|
86,620 |
|
83,184 |
| ||
|
|
|
|
|
|
| ||
|
Cash flows from investing activities: |
|
|
|
|
| ||
|
Cash used in acquisitions, net of cash acquired |
|
(700 |
) |
(97,092 |
) | ||
|
Purchases of property and equipment |
|
(6,369 |
) |
(11,252 |
) | ||
|
Capitalized software development costs |
|
(2,137 |
) |
(2,358 |
) | ||
|
Purchases of marketable securities |
|
(220,994 |
) |
(89,236 |
) | ||
|
Sales and maturities of marketable securities |
|
118,588 |
|
87,428 |
| ||
|
Change in restricted cash |
|
95 |
|
— |
| ||
|
|
|
|
|
|
| ||
|
Net cash provided by investing activities from continuing operations |
|
(111,517 |
) |
(112,510 |
) | ||
|
|
|
|
|
|
| ||
|
Cash flows from financing activities: |
|
|
|
|
| ||
|
Proceeds from common stock issued from exercises of stock options |
|
5,173 |
|
7,189 |
| ||
|
Withholding taxes related to equity award net share settlement |
|
(5,496 |
) |
(5,775 |
) | ||
|
Proceeds from common stock issued under the employee stock purchase plan |
|
6,661 |
|
6,158 |
| ||
|
Repurchase of common stock |
|
(41,275 |
) |
(51,582 |
) | ||
|
Proceeds from debt |
|
50,000 |
|
50,000 |
| ||
|
Repayment of debt |
|
(5,000 |
) |
— |
| ||
|
Debt issuance costs |
|
— |
|
(1,901 |
) | ||
|
Excess tax benefits from stock-based compensation |
|
7,785 |
|
7,055 |
| ||
|
|
|
|
|
|
| ||
|
Net cash used in financing activities from continuing operations |
|
17,848 |
|
11,144 |
| ||
|
|
|
|
|
|
| ||
|
Net cash transferred (to) from discontinued operation |
|
(561 |
) |
1,655 |
| ||
|
|
|
|
|
|
| ||
|
Effect of exchange rate changes on cash and cash equivalents |
|
302 |
|
104 |
| ||
|
|
|
|
|
|
| ||
|
Net change in cash and cash equivalents from continuing operations |
|
(7,308 |
) |
(16,423 |
) | ||
|
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 |
|
$ |
58,217 |
|
$ |
65,525 |
|
|
|
|
|
|
|
| ||
|
|
|
Twelve Months Ended December 31 |
| ||||
|
|
|
2012 |
|
2011 |
| ||
|
Supplemental disclosure of cash flow information |
|
|
|
|
| ||
|
Cash flow from discontiued operation: |
|
|
|
|
| ||
|
Net cash used in operating activities |
|
$ |
(561 |
) |
$ |
(1,349 |
) |
|
Net cash provided by investing activities |
|
— |
|
3,004 |
| ||
|
Net cash transferred from (to) continuing operations |
|
561 |
|
(1,655 |
) | ||
|
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 |
|
$ |
— |
|
$ |
— |
|
The cash flows from the discontinued operation, as presented in the condensed consolidated statement of cash flows, relate to the operations of MicroEdge.
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, 2012 for Continuing Operations |
| |||||||||||
|
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
| |||
|
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
$ |
62,578 |
|
68 |
% |
$ |
12,692 |
|
14 |
% |
$ |
8,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Amortization of acquired developed technology |
|
1,908 |
|
|
|
1,908 |
|
|
|
1,908 |
| |||
|
Amortization of other acquired intangibles |
|
— |
|
|
|
958 |
|
|
|
958 |
| |||
|
Stock-based compensation - cost of revenues |
|
905 |
|
|
|
905 |
|
|
|
905 |
| |||
|
Stock-based compensation - operating expenses |
|
— |
|
|
|
4,552 |
|
|
|
4,552 |
| |||
|
Restructuring charges |
|
— |
|
|
|
3,581 |
|
|
|
3,581 |
| |||
|
Income tax adjustment for non-GAAP (1) |
|
— |
|
|
|
— |
|
|
|
(4,281 |
) | |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Non-GAAP |
|
$ |
65,391 |
|
71 |
% |
$ |
24,596 |
|
27 |
% |
$ |
15,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.16 |
| ||
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.30 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
51,802 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
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 |
| |||
(1) The estimated non-GAAP effective tax rate was 35% for the three months ended December 31, 2012 and 2011, 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, 2012 for Continuing Operations |
| |||||||||||
|
|
|
Gross |
|
Gross |
|
Operating |
|
Operating |
|
Net |
| |||
|
|
|
Margin |
|
Margin % |
|
Income |
|
Income % |
|
Income |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
$ |
236,103 |
|
66 |
% |
$ |
49,179 |
|
14 |
% |
$ |
30,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Amortization of acquired developed technology |
|
7,599 |
|
|
|
7,599 |
|
|
|
7,599 |
| |||
|
Amortization of other acquired intangibles |
|
— |
|
|
|
3,825 |
|
|
|
3,825 |
| |||
|
Stock-based compensation - cost of revenues |
|
3,641 |
|
|
|
3,641 |
|
|
|
3,641 |
| |||
|
Stock-based compensation - operating expenses |
|
— |
|
|
|
17,160 |
|
|
|
17,160 |
| |||
|
Restructuring charges |
|
— |
|
|
|
3,634 |
|
|
|
3,634 |
| |||
|
Income tax adjustment for non-GAAP (1) |
|
— |
|
|
|
— |
|
|
|
(11,868 |
) | |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Non-GAAP |
|
$ |
247,343 |
|
69 |
% |
$ |
85,038 |
|
24 |
% |
$ |
54,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Diluted net income per share |
|
|
|
|
|
|
|
|
|
|
| |||
|
GAAP |
|
|
|
|
|
|
|
|
|
$ |
0.58 |
| ||
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
$ |
1.03 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Shares used to compute diluted net income per share |
|
|
|
|
|
|
|
|
|
52,425 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
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 |
| |||
(1) The estimated non-GAAP effective tax rate was 35% for the twelve months ended December 31, 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. These non-GAAP measures 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 of Advent’s 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 Ending December 31, 2013 |
|
|
|
|
Continuing Operations |
|
|
|
|
Operating Income % |
|
|
|
|
|
|
|
Projected GAAP |
|
17.5% to 18.0% |
|
|
|
|
|
|
|
Projected amortization of acquired developed technology and other acquired intangible asset adjustment |
|
3.0% |
|
|
Projected stock-based compensation adjustment |
|
6.0% |
|
|
Projected restructuring charge adjustment |
|
0.5% |
|
|
|
|
|
|
|
Projected non-GAAP |
|
27.0% to 27.5% |
|