Windsor, CT, February 5, 2002 - SS&C Technologies, Inc. (NASDAQ: SSNC) today announced results for the quarter and full-year ended December 31, 2001. Total revenue for the fourth quarter 2001 was $14.5 million, and for full-year 2001 was $55.7 million, as compared with $14.2 million for the fourth quarter 2000, and $60.0 million for the full-year 2000. Net income for the fourth quarter 2001 was $1.2 million, or $0.08 diluted earnings per share, and $4.0 million for full-year 2001, or $0.27 diluted earnings per share. This compares with earnings of $0.9 million, or $0.06 diluted earnings per share for the fourth quarter 2000, and $2.2 million, or $0.14 diluted earnings per share, for full-year 2000. Excluding the previously announced restructuring cost of $840 thousand and a capital loss of $442 thousand, fourth quarter 2001 earnings were $0.13 per diluted share.
This represents an increase of 225% versus fourth quarter 2000, excluding the
fourth-quarter 2000 acquisition payment and capital gain. "We are pleased, once again, to report these positive results for the fourth quarter and full-year 2001, highlighted by 225% and 79% increases in pro forma EPS for the quarter and year, respectively. Our continued focus on managing expenses, building revenues, particularly our recurring revenues, and generating cash from operations, are the keys to success," stated William C. Stone, SS&C's resident, CEO, and Chairman of the Board. Cashflow and Operating Earnings Up Strongly "Operating earnings were $1.8 million in Q4, up from $1.2 million in Q3
2001, and up from a loss of $1.1 million in Q4 2000. Excluding the $840
thousand charge in relation to our restructuring in November of 2001, Q4
operating earnings were $2.6 million," continued Stone.
SS&C continues to generate cash from operating activities, with year-end cash and marketable securities of $59.5 million, or $3.92 per share. Excluding stock repurchases of $2.3 million, and the acquisition of DVI for $1.5 million, SS&C generated $6.8 million, or $0.45 per share, in 2001; $2.7 million of the $6.8 million was generated in the fourth quarter.
Acquisition Augments Recurring Revenues and Adds Strategic Alliance Partners
"The fourth quarter was an exciting one for SS&C as we announced the acquisition of DVI, a leading provider of Internet-based bond accounting, portfolio analytics, and asset-liability management services to community
banks and credit unions. DVI delivers these services through a network of 47
strategic partners," Stone continued. "In addition to these benefits, the
DVI acquisition, coupled with the January, 2002 acquisition of Real-Time
USA, Inc., positions us as the sole owner of the Lightning(tm) product, a
system designed to provide capital markets fixed income trading, analytics,
and portfolio management.
"We expect the DVI and Real-Time acquisitions, including sales of the Lightning system, to boost our recurring revenues. Given the momentum of these acquisitions, we believe we can achieve 45 to 50 cents a share in 2002 earnings, and increase revenue to between $65 and $70 million for 2002,"
Sales Focus on Recurring Revenue Model and Incremental Sales Commenting on fourth quarter progress, SS&C Executive Vice President and Chief Operating Officer, Normand A. Boulanger said, "As we have stated, the DVI and Real-Time acquisitions further strengthen SS&C's recurring revenue model. We continue to focus on growth in recurring revenues with our outsourcing business, as well as tightening our sales process to maximize our license opportunities. We believe our steady attention to our sales process will result in significant revenue growth."
"The fourth quarter was highlighted by solid revenue from our real estate
business from the LMS(tm) and SKYLINE II® products; extending our outsourcing relationship with Merrill Lynch Quantitative Advisors to encompass the front, middle and back-office; adding Hong Leong Assurance in Malaysia to our CAMRA(tm) and Antares(tm) software client base; and CAMRA client ING licensing our Debt & Derivatives system. We are particularly encouraged by Paramount Capital Asset Management, Inc., Bay Harbour Management, L.C., and Tiger Management L.L.C., licensing our AdvisorWare® hedge fund system," stated Boulanger.
Research & Development During the fourth quarter, SS&C released Antares version 2002 software, SS&C Debt & Derivatives(tm) version 2002 software, which includes a new Equity Swaps module and Schedule DB reporting for derivatives, Finesse(tm) version 2002 software, and a CAMRA system regulatory release. Other development efforts focused on the LMS version 4.0 and AdvisorWare version 2002
software, expected to be released in the first quarter 2002.
"Tantamount to our development effort in all of 2001 has been increasing
system connectivity and integration of cross-enterprise information access
through XE(tm), among all of SS&C's systems," stated Boulanger. "One key
component of our recent Antares product release was support of the Omgeo and
FIX interfaces with an eye to T+1. As we move into 2002, SS&C intends to
maintain and further cement our technology leadership-specifically, we will
provide superior functionality with enabling technologies, which can be
deployed globally and integrated via Web services."
Marketing Efforts Continue to Focus on Vertical Lines:
SS&C's sales and marketing efforts have continued to focus on the Company's
five vertical lines. Bi-weekly, SS&C distributes software "e.briefings" to
more than 175,000 industry professionals across the Company's five vertical
markets that feature topical articles about the latest technology and
business issues. These e.briefings continue to generate significant web hits
and sales leads.
SS&C's Q4 2001 earnings call will take place at 5:00 p.m. EST today,
February 5, 2002. Interested parties may dial 800-450-0785 (US) or
612-332-0418 (international), and request the "SS&C Fourth Quarter Call." A
replay will be available from 8:00 p.m. February 5, until midnight February
12, 2002; dial 800-475-6701 (US), or 320-365-3844 (international), access