SOURCE: Advent Software, Inc.

Advent Software, Inc.

February 01, 2010 16:15 ET

Advent Software Reports Fourth Quarter and Fiscal Year 2009 Results

Quarterly Revenue of $66 Million and Annual Contract Value of $9 Million

SAN FRANCISCO, CA--(Marketwire - February 1, 2010) - Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the global investment management industry, announced today its financial results for the fourth quarter and full year ended December 31, 2009.

"I'm extremely proud of our fourth quarter and 2009 financial results. Despite a very challenging environment in 2009, the strength of our business model enabled us to grow annual revenues, profits and operating cash flow," said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. "The breadth of our product portfolio and our customer focus had us well positioned for the renewed demand we experienced in the fourth quarter."

FOURTH QUARTER AND FISCAL YEAR 2009 RESULTS

On October 1, 2009, the Company completed the sale of its New York-based subsidiary MicroEdge, Inc. to Vista Equity Partners. All past and future reported results of the MicroEdge business are now reported as discontinued operations of the Company.

GAAP Results for Continuing Operations

The Company reported quarterly revenue from continuing operations of $66.3 million for the fourth quarter of 2009, compared to $66.5 million in the fourth quarter of 2008. Total annual revenues from continuing operations for the year ended December 31, 2009 were $259.5 million, a 9% increase over the $237.9 million recorded in 2008.

Operating income from continuing operations for the fourth quarter of 2009 was $6.4 million, or 10% of revenue, up from $6.2 million or 9% of revenue for the fourth quarter of 2008. Operating income from continuing operations for the year ended December 31, 2009 was $27.9 million, or 11% of revenue, which represented an increase of 55% compared to $18.0 million, or 8% of revenue, for 2008.

Net income from continuing operations for the fourth quarter of 2009 was $4.3 million compared to $5.6 million from continuing operations in the fourth quarter of 2008. Net income from continuing operations for the year ended December 31, 2009 was $20.8 million compared to $17.3 million for 2008, a 20% increase.

On a fully diluted basis, earnings per share from continuing operations in the fourth quarter of 2009 were $0.16 and represent a 23% decrease from $0.21 from continuing operations in the fourth quarter of 2008. On a fully diluted basis, earnings per share from continuing operations for the year ended December 31, 2009 were $0.79 and represent a 26% increase compared to $0.62 per share for 2008.

Operating cash flow from continuing operations in the fourth quarter of 2009 was $20.8 million, compared with $20.2 million in the fourth quarter of 2008, a 3% increase. Operating cash flow from continuing operations for the year ended December 31, 2009 was $72.4 million, compared with $70.3 million for 2008, a 3% increase. Cash, cash equivalents and short and long-term marketable securities totaled $117.6 million as of December 31, 2009, compared to $45.1 million as of December 31, 2008.

Total deferred revenues from continuing operations were $146.1 million as of December 31, 2009, compared to $141.3 million from continuing operations as of December 31, 2008, a 3% increase.

Non-GAAP Results for Continuing Operations

Non-GAAP operating income from continuing operations for the fourth quarter of 2009 was $11.8 million, or 18% of revenue. This represents a 3% decrease compared to $12.2 million from continuing operations, or 18% of revenue, in the fourth quarter of 2008. Non-GAAP operating income from continuing operations for the year ended December 31, 2009 was $51.0 million, or 20% of revenue. This represents a 39% increase compared to non-GAAP operating income from continuing operations of $36.7 million, or 15% of revenue for 2008.

Non-GAAP diluted earnings per share from continuing operations were $0.28 in the fourth quarter of 2009 compared to $0.28 in the fourth quarter of 2008. On a non-GAAP basis, diluted earnings per share from continuing operations were $1.23 for the year ended December 31, 2009, a 45% increase compared to $0.85 per share for 2008.

The reconciliation between GAAP and non-GAAP financial measures is provided at the end of this press release.

GAAP Results for Discontinued Operations

Net income from discontinued operations for the fourth quarter of 2009 was $13.6 million compared to $0.6 million from discontinued operations in the fourth quarter of 2008. Net income from discontinued operations for the year ended December 31, 2009 was $16.1 million, compared to $1.6 million from discontinued operations for 2008. Net income from discontinued operations for the fourth quarter and fiscal 2009 included a post-tax gain of $13.6 million from the disposition of MicroEdge.

On a fully diluted basis, earnings per share from discontinued operations in the fourth quarter of 2009 were $0.50 compared to $0.02 from discontinued operations in the fourth quarter of 2008. On a fully diluted basis, earnings per share from discontinued operations for the year ended December 31, 2009 were $0.61, compared to $0.06 from discontinued operations for 2008.

FOURTH QUARTER HIGHLIGHTS

-- Stronger Bookings: The term license contracts signed in the fourth
   quarter of 2009 will contribute $8.9 million in annual contract value
   once they are fully implemented.
-- Customer Momentum: Advent saw continued momentum in customer wins for
   Advent Portfolio Exchange® (APX) and Geneva®.  The Company signed 35
   locally installed APX contracts in the fourth quarter, which, combined
   with the fourth quarter APX outsourcing contracts, brings the total
   number of global APX contracts signed to nearly 600.  Additionally,
   Advent signed 11 Geneva® contracts in the fourth quarter.
-- Further Expansion into Asia Pacific: In the fourth quarter, Advent
   opened a new office in Beijing, China.  The office is staffed with more
   than 50 employees who were previously part of the Company's contract
   workforce.  It is Advent's largest office outside of North America.
-- Received Buy-Side Technology Award: For the third consecutive year,
   Buy-Side Technology magazine named Geneva® 'Best Buy-Side Portfolio
   Accounting Product.'

FINANCIAL GUIDANCE

Advent announces the following financial guidance for the first quarter and fiscal year 2010:

                                              Q1 2010      FY 2010
                                            Continuing   Continuing
Guidance                                    Operations   Operations
                                            ------------ -----------
Total Revenue ($M)                            $65-$67     $272-$280
                                            ------------ -----------
GAAP Operating Margin                            n/a       11%-12%
                                            ------------ -----------
Amortization of Intangibles
 (% of revenue)                                  n/a        1%-2%
                                            ------------ -----------
Stock Compensation Expense (% of revenue)        n/a        7%-8%
                                            ------------ -----------
Non-GAAP Operating Margin                        n/a       20%-21%
                                            ------------ -----------
Operating Cash Flow ($M)                         n/a       $77-$82
                                            ------------ -----------
Capital Expenditures ($M)                        n/a       $18-$22
                                            ------------ -----------

INVESTOR CALL

Advent Software, Inc. will host its Q4 2009 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q4 2009 earnings presentation and trended disclosures file, which include highlights and detailed financial information, are currently available at http://investor.advent.com. To participate via phone, please dial 800-510-0219 and request conference ID #42966359. A replay will be available through midnight, February 8, 2010, by calling 888-286-8010 and referencing conference ID #35959304. The conference call will also be webcast live and then archived on http://investor.advent.com.

ABOUT ADVENT

Advent Software, Inc. (www.advent.com), a global firm, has provided trusted solutions to the world's leading financial professionals since 1983. Firms in more than 60 countries use Advent technology. Advent's quality software, data, services and tools enable financial professionals to improve service and communication to their clients, allowing them to grow their business while controlling costs. Advent is the only financial services software company to be awarded the Service Capability and Performance certification for being a world-class support organization. For more information on Advent products visit http://www.advent.com/about/resources/demos/pr.

ABOUT NON-GAAP FINANCIAL INFORMATION

This press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP), please see the accompanying tables entitled "Reconciliation of Selected GAAP Measures to Non-GAAP Measures."

FORWARD-LOOKING STATEMENTS

The financial projections under Financial Guidance, our revenue growth, market acceptance and demand for our products and new product releases, our competitive position, market conditions and their impact on our business, international expansion, and the momentum of the business, and other forward-looking statements included in this presentation reflect management's best judgment based on factors currently known and involve risks and uncertainties; our actual results may differ materially from those discussed here. These risks and uncertainties include: potential fluctuations in new contract bookings, renewal rates, operating results and future growth rates; continued market acceptance of our Advent Portfolio Exchange®, Geneva® and Moxy® products; the successful development, release and market acceptance of new products and product enhancements; continued uncertainties and fluctuations in the financial markets; the Company's ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Tamale Software, and achieving expected synergies and results; and other risks detailed from time to time in our SEC reports including, but not limited to, our quarterly reports on Form 10-Q and our 2008 annual report on Form 10-K. The Company disclaims any intention or obligation to publicly update or revise any forward-looking statements including any guidance, whether as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Advent, the Advent logo, Advent Software, Advent Portfolio Exchange, Geneva and Moxy are registered trademarks of Advent Software, Inc. All other company names or marks mentioned herein are those of their respective owners.


                          ADVENT SOFTWARE, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                              (In thousands)
                            (GAAP, Unaudited)


                                                December 31   December 31
                                                    2009          2008
                                                ------------  ------------
ASSETS
Current assets:
  Cash and cash equivalents                     $     57,877  $     45,098
  Short-term investments                              31,273             -
  Accounts receivable, net                            44,246        46,564
  Deferred taxes, current                             15,081        12,458
  Prepaid expenses and other                          22,350        19,732
  Current assets of discontinued operation               494         9,443
                                                ------------  ------------

    Total current assets                             171,321       133,295
Property and equipment, net                           33,945        39,150
Goodwill                                             144,827       143,044
Other intangibles, net                                22,965        27,217
Long-term investments                                 28,995           500
Deferred taxes, long-term                             40,502        54,166
Other assets                                           9,642        10,919
Noncurrent assets of discontinued operation            2,095        11,303
                                                ------------  ------------

Total assets                                    $    454,292  $    419,594
                                                ============  ============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                              $      4,708  $      5,312
  Accrued liabilities                                 31,066        25,781
  Deferred revenues                                  140,186       135,217
  Income taxes payable                                 1,616           978
  Current liabilities of discontinued operation          719        13,953
                                                ------------  ------------

    Total current liabilities                        178,295       181,241
Long-term debt                                             -        25,000
Deferred revenues, long-term                           5,879         6,083
Other long-term liabilities                           12,969        10,072
Noncurrent liabilities of discontinued
 operation                                             5,115         1,375
                                                ------------  ------------

Total liabilities                                    202,258       223,771
                                                ------------  ------------

Stockholders' equity:
  Common stock                                           259           257
  Additional paid-in capital                         386,623       365,351
  Accumulated deficit                               (145,584)     (176,484)
  Accumulated other comprehensive income              10,736         6,699
                                                ------------  ------------

    Total stockholders' equity                       252,034       195,823
                                                ------------  ------------

Total liabilities and stockholders' equity      $    454,292  $    419,594
                                                ============  ============



                          ADVENT SOFTWARE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share data)
                            (GAAP, Unaudited)


                                    Three Months Ended  Twelve Months Ended
                                        December 31         December 31
                                    ------------------  -------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------- ---------
Net revenues:
Term license, maintenance and other
 recurring                          $ 56,343  $ 53,111  $ 222,759 $ 191,444
Perpetual license fees                 3,642     5,323     11,275    16,808
Professional services and other        6,348     8,055     25,474    29,632
                                    --------  --------  --------- ---------

    Total net revenues                66,333    66,489    259,508   237,884

Cost of revenues (1):
Term license, maintenance and other
 recurring                            12,094    12,217     46,823    43,798
Perpetual license fees                    72       120        327       488
Professional services and other        6,587     8,819     29,777    34,158
Amortization of developed
 technology                            1,473     1,380      5,618     3,061
                                    --------  --------  --------- ---------

    Total cost of revenues            20,226    22,536     82,545    81,505
                                    --------  --------  --------- ---------

    Gross margin                      46,107    43,953    176,963   156,379

Operating expenses (1):
Sales and marketing                   16,200    15,648     62,738    57,939
Product development                   12,915    11,580     48,443    42,897
General and administrative            10,175     9,671     36,107    35,887
Amortization of other intangibles        351       439      1,666     1,160
Acquired in-process technology             -       400          -       400
Restructuring charges                     38         5        130       101
                                    --------  --------  --------- ---------

    Total operating expenses          39,679    37,743    149,084   138,384
                                    --------  --------  --------- ---------

Income from continuing operations      6,428     6,210     27,879    17,995
Interest income and other income
 (expense), net                         (345)     (455)     1,240     3,178
                                    --------  --------  --------- ---------

Income from continuing operations
 before income taxes                   6,083     5,755     29,119    21,173
Provision for income taxes             1,733       119      8,345     3,857
                                    --------  --------  --------- ---------

    Net income from continuing
     operations                     $  4,350  $  5,636  $  20,774 $  17,316
Discontinued operation:
    Net income from discontinued
     operation (net of applicable
     taxes of $4,230, $402,
     $5,639 and $1,097,
     respectively)                    13,610       557     16,109     1,579
Net income                          $ 17,960  $  6,193  $  36,883 $  18,895
                                    ========  ========  ========= =========
Basic net income per share:
    Continuing operations           $   0.17  $   0.21  $    0.82 $    0.65
    Discontinued operation              0.53      0.02       0.63      0.06
                                    --------  --------  --------- ---------
       Total operations             $   0.70  $   0.23  $    1.45 $    0.71
                                    ========  ========  ========= =========
Diluted net income per share:
    Continuing operations           $   0.16  $   0.21  $    0.79 $    0.62
    Discontinued operation              0.50      0.02       0.61      0.06
                                    --------  --------  --------- ---------
       Total operations             $   0.67  $   0.23  $    1.39 $    0.68
                                    ========  ========  ========= =========
Weighted average shares used to
 compute net income per share:
    Basic                             25,736    26,478     25,450    26,640
    Diluted                           26,974    26,781     26,454    27,893

(1) Includes stock-based employee
     compensation expense as follows:
      Cost of term license,
       maintenance and other
       recurring revenues           $    364  $    376  $   1,697 $   1,283
      Cost of professional services
       and other revenues                302       347      1,269     1,086
                                    --------  --------  --------- ---------
          Total cost of revenues         666       723      2,966     2,369

      Sales and marketing              1,125     1,390      5,390     4,706
      Product development              1,216     1,032      4,857     3,815
      General and administrative       1,180     1,180      4,949     5,218
                                    --------  --------  --------- ---------
          Total operating expenses     3,521     3,602     15,196    13,739
                                    --------  --------  --------- ---------

       Total stock-based employee
        compensation expense        $  4,187  $  4,325  $  18,162 $  16,108
                                    ========  ========  ========= =========




                          ADVENT SOFTWARE, INC.
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)
                                (Unaudited)


                                                          Twelve Months
                                                        Ended December 31
                                                        ------------------
                                                          2009      2008
                                                        --------  --------
Cash flows from operating activities:
  Net income                                            $ 36,883  $ 18,895
  Adjustment to net income for discontinued operation    (16,109)   (1,579)
                                                        --------  --------
  Net income from continuing operations                   20,774    17,316

  Adjustments to reconcile net income to net cash
   provided by operating activities from continuing
   operations:
    Stock-based compensation                              18,162    16,108
    Depreciation and amortization                         16,692    12,657
    Acquired in-process research and development               -       400
    Loss on dispositions of fixed assets                      94         6
    Provision for doubtful accounts                          215       611
    Provision for sales returns                              315       219
    Gain on investments                                   (2,056)   (3,393)
    Deferred income taxes                                  8,129     3,060
    Other                                                    199      (126)
                                                        --------  --------
        Effect of statement of operations adjustments     41,750    29,542
    Changes in operating assets and liabilities:
      Accounts receivable                                  2,094    (2,658)
      Prepaid and other assets                            (1,906)     (588)
      Accounts payable                                      (262)    1,147
      Accrued liabilities                                  7,829    (3,489)
      Deferred revenues                                    4,450    29,409
      Income taxes payable                                (2,301)     (342)
                                                        --------  --------
        Effect of changes in operating assets and
         liabilities                                       9,904    23,479
                                                        --------  --------

Net cash provided by operating activities from
 continuing operations                                    72,427    70,337

Cash flows from investing activities:
  Net cash used in acquisitions                             (200)  (27,775)
  Purchases of property and equipment                     (4,575)  (21,851)
  Capitalized software development costs                  (2,893)   (2,307)
  Purchases of marketable securities                     (60,000)        -
  Proceeds from sale of private equity investments         2,056     3,393
  Proceeds from disposition of fixed assets                   37         -
  Change in restricted cash                                  611      (248)
                                                        --------  --------

Net cash used in investing activities from continuing
 operations                                              (64,964)  (48,788)

Cash flows from financing activities:
  Proceeds from common stock issued from exercises of
   stock options                                           8,637     6,095
  Withholding taxes related to equity award net share
   settlement                                             (2,196)   (2,078)
  Proceeds from common stock issued under the employee
   stock purchase plan                                     5,621     5,018
  Repurchase of common stock                             (14,578)  (61,572)
  Proceeds from long term borrowing                            -    25,000
  Repayment of long-term borrowing                       (25,000)        -
  Excess tax benefits from stock-based compensation          499       263
                                                        --------  --------

Net cash used in financing activities from continuing
 operations                                              (27,017)  (27,274)

Net cash transferred from discontinued operation          31,959     2,707

Effect of exchange rate changes on cash and cash
 equivalents                                                 374      (693)
                                                        --------  --------

Net change in cash and cash equivalents from continuing
 operations                                               12,779    (3,711)
Cash and cash equivalents of continuing operations at
 beginning of period                                      45,098    48,809
                                                        --------  --------

Cash and cash equivalents of continuing operations at
 end of period                                          $ 57,877  $ 45,098
                                                        ========  ========


                                                       Twelve Months Ended
                                                           December 31
                                                        ------------------
                                                          2009     2008
                                                        --------  --------
Supplemental disclosure of cash flow information
Cash flow from discontiued operation:
  Net cash provided by operating activities             $  2,621  $  6,650
  Net cash provided by (used in) investing activities     26,358    (1,417)
  Net cash transferred to continuing operations          (31,959)   (2,708)
  Effect of exchange rates on cash and cash equivalents       (7)      (52)
                                                        --------  --------
  Net change in cash and cash equivalents from
   discontinued operations                                (2,987)    2,473
  Cash and cash equivalents of discontinued operation
   at beginning of period                                  3,253       780
                                                        --------  --------
  Cash and cash equivalents of discontinued operation
   at end of period                                     $    266  $  3,253
                                                        ========  ========




                             ADVENT SOFTWARE, INC.
       RECONCILIATION OF SELECTED CONTINUING OPERATIONS' GAAP MEASURES
                             TO NON-GAAP MEASURES
                    (In thousands, except per share data)
                                 (Unaudited)


To supplement our condensed consolidated financial statements presented on
a GAAP basis, Advent uses non-GAAP measures of continuing operations'
operating income, net income and net income per share, which are adjusted
to exclude certain costs, expenses, gains and losses we believe appropriate
to enhance an overall understanding of our past financial performance and
also our prospects for the future. These adjustments to our current period
GAAP results are made with the intent of providing both management and
investors a more complete understanding of Advent's underlying operational
results and trends and our marketplace performance. In addition, these
adjusted non-GAAP results are among the information management uses as a
basis for our planning and forecasting of future periods. The presentation
of this additional information is not meant to be considered in isolation
or as a substitute for results prepared in accordance with generally
accepted accounting principles in the United States of America.




                                 Three Months Ended December 31, 2009 for
                                          Continuing Operations
                               -------------------------------------------
                               Gross    Gross  Operating Operating   Net
                               Margin  Margin %  Income  Income %  Income
                               -------- -------  -------- -------  -------
GAAP                           $ 46,107      70% $  6,428      10% $ 4,350

  Amortization of acquired
   developed technology             782               782              782
  Amortization of other
   acquired intangibles               -               351              351
  Stock-based compensation -
   cost of revenues                 666               666              666
  Stock-based compensation -
   operating expenses                 -             3,521            3,521
  Restructuring charges               -                38               38
  Income tax adjustment for
   non-GAAP (1)                       -                 -           (2,271)

                               --------          --------          -------
Non-GAAP                       $ 47,555      72% $ 11,786      18% $ 7,437
                               ========          ========          =======

Diluted net income per share
  GAAP                                                             $  0.16
  Non-GAAP                                                         $  0.28

Shares used to compute diluted
 net income per share                                               26,974



                                  Three Months Ended December 31, 2008 for
                                         Continuing Operations
                               -------------------------------------------
                                  Gross Gross   Operating Operating Net
                                 Margin Margin %  Income  Income % Income
                               -------- -------  -------- -------  -------

GAAP                           $ 43,953      66% $  6,210       9% $ 5,636

  Amortization of acquired
   developed technology             782               782              782
  Amortization of other
   acquired intangibles               -               439              439
  Stock-based compensation -
   cost of revenues                 723               723              723
  Stock-based compensation -
   operating expenses                 -             3,602            3,602
  Restructuring charges               -                 5                5
  Acquired in-process research
   and development                    -               400              400
  Income tax adjustment for
   non-GAAP (1)                       -                 -           (3,978)

                               --------          --------          -------
Non-GAAP                       $ 45,458      68% $ 12,161      18% $ 7,609
                               ========          ========          =======

Diluted net income per share
  GAAP                                                             $  0.21
  Non-GAAP                                                         $  0.28

Shares used to compute diluted
 net income per share                                               26,781


(1) The estimated non-GAAP effective tax rate was 35% for the three months
    ended December 31, 2009 and 2008, respectively, and has been used to
    adjust the provision for income taxes for non-GAAP purposes.





                           ADVENT SOFTWARE, INC.
       RECONCILIATION OF SELECTED CONTINUING OPERATIONS' GAAP MEASURES
                            TO NON-GAAP MEASURES
                  (In thousands, except per share data)
                                (Unaudited)


To supplement our condensed consolidated financial statements presented on
a GAAP basis, Advent uses non-GAAP measures of continuing operations'
operating income, net income and net income per share, which are adjusted
to exclude certain costs, expenses, gains and losses we believe appropriate
to enhance an overall understanding of our past financial performance and
also our prospects for the future. These adjustments to our current period
GAAP results are made with the intent of providing both management and
investors a more complete understanding of Advent's underlying operational
results and trends and our marketplace performance. In addition, these
adjusted non-GAAP results are among the information management uses as a
basis for our planning and forecasting of future periods. The presentation
of this additional information is not meant to be considered in isolation
or as a substitute for results prepared in accordance with generally
accepted accounting principles in the United States of America.


                              Twelve Months Ended December 31, 2009 for
                                        Continuing Operations
                          ------------------------------------------------
                            Gross    Gross   Operating Operating    Net
                           Margin   Margin %   Income   Income %   Income
                          --------- --------  --------- --------  --------
GAAP                      $ 176,963       68% $  27,879       11% $ 20,774

  Amortization of
   acquired developed
   technology                 3,128               3,128              3,128
  Amortization of other
   acquired intangibles           -               1,666              1,666
  Stock-based
   compensation - cost of
   revenues                   2,966               2,966              2,966
  Stock-based
   compensation -
   operating expenses             -              15,196             15,196
  Restructuring charges           -                 130                130
  Investment gain                 -                   -             (2,056)
  Income tax adjustment
   for non-GAAP (1)               -                   -             (9,207)

                          ---------           ---------           --------
Non-GAAP                  $ 183,057       71% $  50,965       20% $ 32,597
                          =========           =========           ========

Diluted net income per
 share
  GAAP                                                            $   0.79
  Non-GAAP                                                        $   1.23

Shares used to compute
 diluted net income per
 share                                                              26,454


                              Twelve Months Ended December 31, 2008 for
                                          Continuing Operations
                          ------------------------------------------------
                           Gross     Gross   Operating Operating    Net
                           Margin   Margin %   Income   Income %   Income
                          --------- --------  --------- --------  --------

GAAP                      $ 156,379       66% $  17,995        8% $ 17,316

  Amortization of
   acquired developed
   technology                   938                 938                938
  Amortization of other
   acquired intangibles           -               1,160              1,160
  Stock-based
   compensation - cost of
   revenues                   2,369               2,369              2,369
  Stock-based
   compensation -
   operating expenses             -              13,739             13,739
  Restructuring charges           -                 101                101
  Acquired in-process
   research and
   development                    -                 400                400
  Investment gain                 -                   -             (3,393)
  Income tax adjustment
   for non-GAAP (1)               -                   -             (8,913)

                          ---------           ---------           --------
Non-GAAP                  $ 159,686       67% $  36,702       15% $ 23,717
                          =========           =========           ========

Diluted net income per
 share
  GAAP                                                            $   0.62
  Non-GAAP                                                        $   0.85

Shares used to compute
 diluted net income per
 share                                                              27,893


(1) The estimated non-GAAP effective tax rate was 35% for the twelve months
    ended December 31, 2009 and 2008, respectively, and has been used to
    adjust the provision for income taxes for non-GAAP purposes.




                             Advent Software, Inc.
 Reconciliation of Projected Continuing Operations' GAAP Operating Income %
                        to Non-GAAP Operating Income %
                         (Preliminary and unaudited)



Advent provides projections of non-GAAP measures of its continuing
operations' operating income, which exclude certain costs, expenses, gains
and losses which it believes is appropriate to enhance an overall
understanding of our past financial performance and also our prospects for
the future. These adjustments to our projected continuing operations' GAAP
results are made with the intent of providing management and investors a 
more complete understanding continuing operations' underlying operational
results and trends and our marketplace performance. In addition, these
adjusted non-GAAP projections are among the information management uses as
a basis for planning and forecasting of future periods. The presentation of
this additional information is not meant to be considered in isolation or
as a substitute for results prepared in accordance with generally accepted
accounting principles in the United States of America.


                                                     Twelve Months Ended
                                                      December 31, 2010
                                                    Continuing Operations
                                                     Operating Income %
                                                   -----------------------

    Projected GAAP                                        11% to        12%
                                                   =========     =========

        Projected amortization of acquired
         developed technology
         and other acquired intangible asset
         adjustment                                        1% to         2%
        Projected stock based compensation
         adjustment                                        7% to         8%

                                                   ---------     ---------
    Projected non-GAAP                                    20% to        21%
                                                   =========     =========

Contact Information

  • Media Contact:
    Jessica Miller
    Advent Software, Inc.
    (415) 645-1668
    Email Contact

    Investor Relations Contact:
    Heidi Flaherty
    Advent Software, Inc.
    (415) 645-1145
    Email Contact