Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the second quarter ended June 30, 2008.
âWe are delighted to report that Advent had another outstanding quarter that included record revenue, as well as strong operating cash flow, term license contract value and other bookings,â said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. âWe are seeing tremendous growth internationally and continued demand in the U.S. We are in the midst of another terrific year and believe we are well positioned for future growth and profitability.â
The Company reported record revenue of $64.0 million for the second quarter of 2008, compared to $52.4 million in the second quarter of 2007, a 22% increase.
Income from operations for the second quarter of 2008 was $5.1 million, or 8% of revenue, which represented an increase of 67% compared with $3.0 million, or 6% of revenue, in the second quarter of 2007.
Net income for the second quarter of 2008 was $7.4 million compared to net income of $5.1 million in the second quarter of 2007, a 44% increase.
On a fully diluted basis, earnings per share in the second quarter of 2008 were $0.26 and represent a 43% increase from diluted earnings per share of $0.18 in the second quarter of 2007.
Cash flow from operations in the second quarter of 2008 was $25.8 million, compared with $12.0 million in the second quarter of 2007. Cash and cash equivalents totaled $82.4 million as of June 30, 2008, compared to $58.0 million as of March 31, 2008.
Deferred revenues as of June 30, 2008 were $130.6 million, compared to $122.9 million as of March 31, 2008.
Non-GAAP income from operations for the second quarter of 2008 was $9.4 million, resulting in non-GAAP operating margin of 15%. This represents a 27% increase compared to non-GAAP income from operations of $7.4 million and non-GAAP operating margin of 14% in the second quarter of 2007.
On a non-GAAP basis, net income for the second quarter of 2008 was $6.2 million, or $0.22 per diluted share, which represented an increase of 26% compared with $4.9 million, or $0.18 per diluted share, for the second quarter of 2007.
The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.
SECOND QUARTER HIGHLIGHTS
* Operating Cash Flow: Adventâs operating cash flow was $25.8 million for the second quarter of 2008. The four quarter trailing growth rate was 40%. Days sales outstanding (DSO) were 59 days in the second quarter of 2008 versus 67 days during the same period last year.
* TIAA-CREF: Advent was selected by TIAA-CREF, the leading provider of retirement services in the academic, medical and cultural fields, to build an innovative service to address new regulatory challenges faced by 403(b) retirement plan administrators. The service will leverage Adventâs custodial data infrastructure (ACD) to aggregate data from multiple vendors to help prevent non-compliant transactions before they occur and enable plan providers to verify compliance.
* Term License Growth: Adventâs term license contract value (TCV), including migrations, was $21.2 million for the second quarter of 2008. With an average term of 3.1 years, the corresponding annual contract value (ACV) was approximately $6.9 million, an increase of 9% over the same period last year. When fully implemented, the term license contracts signed in the second quarter will add an additional $6.9 million to annual term license revenue. The four quarter trailing growth rates for TCV and ACV were 55% and 47%, respectively. It should be noted the TIAA-CREF contract is for data services, rather than a term license, and as such is not included in term license contract value, however, after meeting certain milestones and acceptance, the expected total value of that contract exceeds the term license contract value reported for the second quarter of 2008.
* Customer Momentum for APX and GenevaÂ®: Advent saw continued momentum in customer wins for its award-winning portfolio accounting platforms. The Company sold a second quarter record of 25 Advent Portfolio ExchangeÂ® (âAPXâ) contracts, bringing the total number of APX contracts sold to 237 worldwide. Advent also sold 12 new GenevaÂ® contracts, bringing the total number of GenevaÂ® contracts sold to 176 worldwide.
Advent has also announced that its Chief Financial Officer, Craig Collins, has left the Company. Mr. Collins will spend more time with family and pursue other opportunities. Mr. Collins has made himself available as required to help in any transition. In the interim, Chief Executive Officer Stephanie DiMarco will be responsible for the operations of Adventâs finance department. Jim Cox, Adventâs Vice President and Corporate Controller, has been named Adventâs Principal Accounting Officer.