Annual Revenue up 13 Percent Year-over-Year
San Francisco, CA, Thursday, February 1, 2005 - Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2004.
Total revenue for the fourth quarter of 2004 was $42.5 million, compared with $38.6 million in the third quarter of 2004, and $36.9 million in the same quarter last year. Total revenue for the year ended December 31, 2004 was $154.9 million, compared with $137.2 million for the year ended December 31, 2003.
Total expenses, including cost of revenues, for the fourth quarter of 2004 were $44.9 million, compared with $43.2 million in the third quarter of 2004, and $42.2 million in the same quarter last year. Expenses in the fourth quarter included $5.1 million for amortization and impairment of intangibles, and a credit of $726,000 relating to updated estimates for prior restructuring charges. Total expenses, including cost of revenues, for the year ended December 31, 2004 were $171.9 million, compared with $176.8 million for the year ended December 31, 2003.
Net loss for the fourth quarter of 2004 was $398,000 or $0.01 per share, compared with a net loss for the third quarter of 2004 of $5.2 million or $0.16 per share. The same quarter last year recorded a net loss of $75.0 million, or $2.29 per share, and included a tax provision of $70.5 million, to record a full valuation allowance against deferred tax assets. Net loss for the year ended December 31, 2004 was $15.1 million, or $0.46 per share, compared to a net loss of $97.5 million, or $3.00 per share, in 2003.
Cash, cash equivalents and short-term investments totaled $165.5 million as of December 31, 2004. This compares to $158.0 million at September 30, 2004, and $160.1 million at December 31, 2003. Operating cash flow for the quarter was $6.8 million.
"With the addition of our strong fourth quarter to the full year, we are proud of our financial results for 2004. Revenues for the full year increased 13% over 2003 and operating cash flow for the year was $25 million. As the leading provider of software and services to investment management firms worldwide, we believe Advent is well positioned as we enter 2005," said Stephanie DiMarco, Chief Executive Officer of Advent.
Advent issued the following guidance:
â¢ Q1 2005 revenues are projected to be in the range of $38 million to $40 million;
â¢ Full year 2005 revenues are projected to be in the range of $162 million to $167 million. The revenue estimates assume that between 20% and 30% of license revenue will be derived from term license agreements. A significant increase in sales of term licenses will cause more license contract revenue to be deferred into 2006 and beyond;
â¢ Q1 2005 expenses, including cost of revenues, are projected to be in the range of $40 million to $41 million;
â¢ Full year 2005 expenses are projected to be in the range of $160 million and $165 million, including amortization of intangibles;
â¢ Amortization of intangibles included in cost of revenues will be approximately $600,000 in Q1 2005 and total $2.4 million for full year 2005, and that related to other intangibles will be approximately $1.1 million in Q1 2005 and total $4.3 million for full year 2005;
â¢ Weighted average shares outstanding will increase by roughly 1 percent in the first quarter from the fourth quarter comparative of 32.6 million shares; and
â¢ The guidance does not include an estimate for the costs of expensing options in the second half of 2005.
Advent will host its fourth quarter results conference call at 5:00 p.m. Eastern time today, Tuesday, February 1, 2005. To participate via phone, please dial 888-812-3873 and request conference ID number 3685718. If you are unable to listen to the call at this time, a replay will be available through February 8, 2005 by calling 800-642-1687, conference ID number 3685718.
The conference call will also be web-cast live at www.advent.com/about/presentations.asp, and will be archived at the same location.