ADVENT SOFTWARE REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

San Francisco, CA, Tuesday, January 31, 2006 - Advent Software, Inc. (NASDAQ: ADVS) today announced its financial results for the fourth quarter and fiscal year ended December 31, 2005.

RESULTS

Net revenues for the fourth quarter of 2005 were $45.1 million, compared with $43.0 million in the third quarter of 2005, and $41.0 million in the same quarter last year. Total revenues for the year ended December 31, 2005 were $169.0 million, compared with $150.0 million for the year ended December 31, 2004.

Expenses, including cost of revenues, for the fourth quarter of 2005 were $43.1 million, compared with $38.0 million in the third quarter, and $44.1 million in the same quarter last year. Expenses in the fourth quarter of 2005 included $1.7 million in amortization of intangibles. Total expenses, including cost of revenues, for the year ended December 31, 2005 were $162.6 million, compared with $168.1 million for the year ended December 31, 2004.

Interest income and other, net was $1.6 million for fourth quarter of 2005, compared with $977,000 in the third quarter of 2005 and $1.3 million in the fourth quarter of 2004.

Net income for the fourth quarter of 2005 was $3.9 million or $0.12 per diluted share, compared with a net income for the third quarter of $6.2 million or $0.19 per diluted share. The same quarter last year recorded a net loss of $717,000, or $0.02 per diluted share. Net income for the year ended December 31, 2005 was $14.2 million, or $0.44 per diluted share, compared to a net loss of $16.2 million, or $0.49 per diluted share, in 2004.

Cash, cash equivalents and short-term investments totaled $163.4 million as of December 31, 2005. This compares to $146.5 million as of September 30, 2005, and $165.5 million at December 31, 2004. Operating cash flow for the quarter was $12.3 million and $36.7 million for the full year.

PERSPECTIVE

“2005 was an impressive year for Advent, with the introduction of Advent Portfolio Exchange®, the release of new versions of Axys®, Moxy®, Geneva® and Advent Partner®, and the addition of 350 new clients across all our core product areas,” said Stephanie DiMarco, Chief Executive Officer of Advent. “We saw tremendous improvement in the company’s financial performance. We also made significant progress in transitioning our business model to term pricing, signing a total of $22.8 million in new term license contracts during 2005. We see this transition accelerating in 2006 and believe it to be extremely important for the long term.”

GUIDANCE
Advent issued the following guidance:
• Q1 2006 revenues are projected to be in the range of $39 million to $41 million;
• Full year 2006 revenues are projected to be in the range of $175 million to $180 million.
• Q1 2006 expenses, including cost of revenues, are projected to be in the range of $43 million to $45 million;
• Full year 2006 expenses are projected to be in the range of $177 million and $181 million, including amortization of developed technology and intangibles and stock-based compensation;
• Amortization of developed technology included in cost of revenues will be approximately $400,000 in Q1 2006 and total $1 million for full year 2006, and that related to other intangibles will be approximately $1.1 million in Q1 2006 and total $3.7 million for full year 2006;
• Stock-based compensation expenses will be approximately $3 million in Q1 2006 and $14 million for full year 2006;
• Interest income will be approximately $1.2 million per quarter in 2006; and
• Common shares outstanding will increase by roughly 1 percent in the first quarter from the fourth quarter ending share count of 31.1 million shares, excluding the possible effect of any stock repurchases.

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