WINDSOR, CT - July 28, 2005 - SS&C Technologies, Inc. (NASDAQ: SSNC) today announced record results for the quarter ended June 30, 2005. Q2 revenues were $40.7 million, an increase of 66% from the $24.5 million for Q2 2004. Net income and operating income for Q2 were $6.6 million and $10.7 million, respectively, increases of 49% and 50% from the $4.4 million and $7.2 million for the second quarter of last year. Diluted earnings per share for Q2 were $0.27, 29% higher than the $0.21 diluted earnings per share for the same period in 2004.
Bill Stone, SS&C's Chairman and CEO, said, "We are pleased with our second quarter results. Revenues reached a record high, with solid contributions from all revenue streams. In Q2, license revenues were $5.8 million; 39% over Q2 last year. Recurring revenues, which includes both maintenance and outsourcing revenues, surpassed previous records; and in Q2 grew to $31.6 million, an increase of 80% over the $17.6 million in Q2 2004. Recurring revenues represented 78% of our total revenues for Q2 2005. Outsourcing continues to be a winning strategy for us, and in Q2 outsourcing revenues reached a record high of $19.6 million, a 136% increase over Q2 2004, and an 88% increase over Q1 2005."
Stone continued, "We continue to manage expenses, and to implement efficiencies as we integrate our acquisitions. As a result, our Q2 net income increased to $6.6 million, a 49% increase over the $4.4 million in Q2 last year; and Q2 operating income rose by 50% over Q2 2004 to $10.7 million."
"We currently expect Q3 2005 revenues to be in the range of $45.0 to $46.5 million and net income to be between $0.29 and $0.31 per diluted share," stated Stone. "For 2005, our expectation is for revenues to be between $159.0 to $165.0 million and diluted earnings per share to be between $1.11 and $1.16."
"SS&C completed the acquisition of Financial Interactive, Inc. (FI) on June 3, 2005," said Stone. "Based in San Francisco and New York City, Financial Interactive provides a comprehensive investor relationship management and fund profiling infrastructure to alternative fund managers, fund of funds managers and fund administrators. FI's FundRunnerÂ® product offers contact management, reporting, performance analytics, compliance and account management as a license or web-based solution. FundRunner adds a powerful dimension to our existing suite of hedge fund solutions."
Stone commented on the progress of integrating recent acquisitions. "Integration of our acquisitions is well underway, and has already begun to yield results. Our numbers reflect the positive impact our acquisitions have had on the overall financial performance of the company. The combined, global sales force is embracing our expanded offerings, and cross-sell opportunities are extremely active. We have seeded a new operation for fund services in Toronto. In Q2, we completed a comprehensive restructuring of FMC to align the organization with the SS&C model. This resulted in a reduction in force of approximately 80 people worldwide."
"In connection with our integration efforts, we remain diligent about maintaining high standards for day-to-day activities in each of our business units," continued Stone. "And, we are using multiple venues to proactively communicate with clients about changes and new value-added services available."
"On July 15th, SS&C launched its new corporate website," said Stone. "We are excited about our new entry way. The site reflects who we are today, and offers visitors in-depth information on the company, our markets and our entire portfolio of products and services. The design incorporates easy navigation, streamlined access to information and convenient search and sort routines."