Net revenues for the third quarter of 2005 were $43.0 million, compared with $41.2 million in the second quarter, and $37.3 million in the same quarter last year.
Expenses, including cost of revenues, for the third quarter of 2005 were $38.0 million, compared with $41.8 million in the second quarter, and $41.9 million in the same quarter last year. Expenses in the third quarter of 2005 included $1.6 million in amortization of intangibles.
Net income for the third quarter of 2005 was $6.2 million or $0.19 per diluted share, compared with a net income for the second quarter of $3.3 million or $0.10 per diluted share. The same quarter last year recorded a net loss of $5.1 million, or $0.16 per diluted share.
Cash, cash equivalents and short-term investments totaled $146.5 million as of September 30, 2005. This compares to $133.8 million as of June 30, 2005. During the third quarter, Advent repurchased 155,500 shares of its common stock at a cost of $3.8 million. Operating cash flow for the quarter was $11.0 million.
"Iâm pleased to report on another successful quarter, where we saw continued revenue growth, our third consecutive quarter of positive earnings per share, an outstanding quarter of $11 million in operating cash flow, progress on the term pricing transition, and important new client wins. It was also a very significant quarter for us in terms of product launches, as we introduced our newest platform to the market, Advent Portfolio Exchangeâ¢, and announced upgrades to AxysÂ®," said Stephanie DiMarco, Chief Executive Officer of Advent.
GUIDANCE Advent issued the following guidance:
â¢ Q4 2005 revenues are projected to be in the range of $41 million to $43 million;
â¢ Full year 2005 revenues are projected to be in the range of $165 million to $167 million;
â¢ Q4 2005 expenses, including cost of revenues, are projected to be in the range of $39 million to $40 million;
â¢ Full year 2005 expenses are projected to be in the range of $158.5 million to $159.5 million, including amortization of intangibles;
â¢ Q4 2005 amortization of intangibles included in cost of revenues will be approximately $600,000, and that related to other intangibles will be approximately $1.0 million;
â¢ Common shares outstanding will increase by roughly 1 percent from the third quarter ending share count of 30.7 million, excluding the possible effect of any stock repurchases; and
â¢ Assuming the price of our common stock remains unchanged during Q4 2005, weighted average common shares outstanding on a diluted basis for Q4 2005 will be approximately 1.9 million shares higher than on a basic basis.