SOURCE: Advent Software Inc.

February 07, 2011 16:15 ET

Advent Software Reports Fourth Quarter and Fiscal Year 2010 Results

Record Quarterly Revenue of $76 Million and Record Operating Profitability of $12 Million

SAN FRANCISCO, CA--(Marketwire - February 7, 2011) - 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, 2010.

"Advent concluded a very strong year with exceptional financial performance in the fourth quarter, in which we again delivered growth in revenue, bookings and profitability," said Stephanie DiMarco, Founder and Chief Executive Officer of Advent. "We are extremely pleased to enter 2011 with momentum across the business in all geographies and market segments and across all of our products and services."

FOURTH QUARTER AND FISCAL YEAR 2010 RESULTS

On December 13, 2010, the Company announced a two-for-one stock split of the Company's common stock, payable in the form of a 100% stock dividend. On January 18, 2011, one additional share of common stock was distributed for each share held as of the close of business on January 3, 2011. All references to number of shares and per share information have been adjusted to reflect the stock split on a retroactive basis.

GAAP Results for Continuing Operations

The Company reported quarterly revenue from continuing operations of $75.6 million for the fourth quarter of 2010, compared to $66.3 million in the fourth quarter of 2009. Total annual revenues from continuing operations for the year ended December 31, 2010 were $283.5 million, a 9% increase over the $259.5 million recorded in 2009.

Operating income for the fourth quarter of 2010 was $11.7 million, or 16% of revenue, up from $6.4 million or 10% of revenue for the fourth quarter of 2009. Operating income for the year ended December 31, 2010 was $36.3 million, or 13% of revenue, which represented an increase of 30% compared to $27.9 million, or 11% of revenue, for 2009.

Net income for the fourth quarter of 2010 was $9.2 million compared to $4.3 million in the fourth quarter of 2009. Net income for the year ended December 31, 2010 was $24.3 million compared to $20.8 million for 2009, a 17% increase.

On a fully diluted basis, earnings per share in the fourth quarter of 2010 were $0.17 and represent a 109% increase from $0.08 in the fourth quarter of 2009. On a fully diluted basis, earnings per share for the year ended December 31, 2010 were $0.45 and represent a 14% increase compared to $0.39 per share for 2009.

Operating cash flow in the fourth quarter of 2010 was $24.4 million, compared with $20.8 million in the fourth quarter of 2009, a 17% increase. Operating cash flow for the year ended December 31, 2010 was $76.2 million, compared with $72.4 million for 2009, a 5% increase. Cash, cash equivalents and short and long-term marketable securities totaled $152.0 million as of December 31, 2010, compared to $117.6 million as of December 31, 2009.

Total deferred revenues were $154.2 million as of December 31, 2010, compared to $146.1 million from continuing operations as of December 31, 2009, a 6% increase.

Non-GAAP Results

Non-GAAP operating income in the fourth quarter of 2010 was $17.9 million, or 24% of revenue. This represents a 52% increase compared to $11.8 million, or 18% of revenue, in the fourth quarter of 2009. Non-GAAP operating income for the year ended December 31, 2010 was $60.2 million, or 21% of revenue. This represents an 18% increase compared to non-GAAP operating income of $51.0 million, or 20% of revenue for 2009.

Non-GAAP diluted earnings per share were $0.21 in the fourth quarter of 2010 compared to $0.14 in the fourth quarter of 2009. On a non-GAAP basis, diluted earnings per share were $0.71 for the year ended December 31, 2010, a 15% increase compared to $0.62 per share for 2009.

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

FOURTH QUARTER HIGHLIGHTS

--  Strong Fundamental Business Metrics: New term license and Advent
    OnDemand® contracts signed in the fourth quarter of 2010 are expected
    to contribute $10.5 million in annual revenue once they are fully
    implemented, a 5% increase over the fourth quarter of 2009. The renewal
    rate was 91% for the third quarter of 2010, a 2 point improvement over
    the same period last year.
--  Continued International Growth: Signaling continued international
    momentum in Asia Pacific, Europe and the Middle East, Advent signed new
    contracts in Hong Kong, New Zealand, Bahrain, Saudi Arabia, the
    Netherlands, Scandinavia, Switzerland and the United Kingdom in the
    fourth quarter. Revenues from international operations accounted for
    17% of total revenue in the fourth quarter of 2010.
--  Two-for-One Stock Split:  Advent's Board of Directors approved a
    two-for-one split of its common stock. The stock split was accomplished
    through a stock dividend issued by the Company on January 18, 2011. The
    stock split increased the number of shares of common stock outstanding
    from approximately 26,000,000 shares to approximately 52,000,000
    shares. Weighted average common shares outstanding and earnings per
    share data for all periods presented have been adjusted to reflect the
    effect of the stock split.
--  Buy-Side Technology and HFM Week Awards: Geneva® was named 'Best
    Buy-Side Portfolio Accounting Product' by Buy-Side Technology magazine
    for the fourth consecutive year and 'Best Fund Accounting and Reporting
    System' by HFM Week.

FINANCIAL GUIDANCE

Advent announces the following financial guidance for the first quarter and fiscal year 2011:

Guidance                                             Q1 2011     FY 2011
-----------                                       ------------ -----------
Total Revenue ($M)                                   $74-$76    $307-$314
                                                  ------------ -----------
GAAP Operating Margin                                  n/a       13%-14%
                                                  ------------ -----------
Amortization of Intangibles
(% of revenue)                                         n/a        1%-2%
                                                  ------------ -----------
Stock Compensation Expense (% of revenue)              n/a        6%-7%
                                                  ------------ -----------
Non-GAAP Operating Margin                              n/a       21%-22%
                                                  ------------ -----------
Operating Cash Flow ($M)                               n/a      $81-$ 85
                                                  ------------ -----------
Capital Expenditures ($M)                              n/a      $12-$ 15
                                                  ------------ -----------

INVESTOR CALL

Advent Software, Inc. will host its Q4 2010 quarterly earnings conference call at 5:00 p.m. Eastern time today. The Q4 2010 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 800-706-7741 and request conference ID #50145467. A replay will be available through midnight, February 14, 2011, by calling 888-286-8010 and referencing conference ID #72639493. 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 50 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, 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 2009 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, Advent OnDemand, 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
                                                      --------------------
                                                        2010       2009
                                                      ---------  ---------
ASSETS
Current assets:
  Cash and cash equivalents                           $  81,948  $  57,877
  Short-term marketable securities                       70,075     31,273
  Accounts receivable, net                               49,960     44,246
  Deferred taxes, current                                16,358     15,081
  Prepaid expenses and other                             17,864     22,350
  Current assets of discontinued operation                    -        494
                                                      ---------  ---------
    Total current assets                                236,205    171,321
Property and equipment, net                              41,524     33,945
Goodwill                                                145,580    144,827
Other intangibles, net                                   19,772     22,965
Long-term marketable securities                               -     28,495
Deferred taxes, long-term                                34,666     40,502
Other assets                                             12,059     10,142
Noncurrent assets of discontinued operation               2,095      2,095
                                                      ---------  ---------

    Total assets                                      $ 491,901  $ 454,292
                                                      =========  =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                    $   6,737  $   4,708
  Accrued liabilities                                    34,080     31,066
  Deferred revenues                                     147,896    140,186
  Income taxes payable                                    1,691      1,616
  Current liabilities of discontinued operation             165        719
                                                      ---------  ---------
    Total current liabilities                           190,569    178,295
Deferred revenues, long-term                              6,337      5,879
Other long-term liabilities                              14,844     12,969
Noncurrent liabilities of discontinued operation          5,228      5,115
                                                      ---------  ---------

    Total liabilities                                   216,978    202,258
                                                      ---------  ---------


Stockholders' equity:
  Common stock                                              520        517
  Additional paid-in capital                            412,675    386,365
  Accumulated deficit                                  (146,887)  (145,584)
  Accumulated other comprehensive income                  8,615     10,736
                                                      ---------  ---------
    Total stockholders' equity                          274,923    252,034
                                                      ---------  ---------

    Total liabilities and stockholders' equity        $ 491,901  $ 454,292
                                                      =========  =========





                          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
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ----------

Net revenues:
Term license, maintenance and
 other recurring                $  64,052  $  56,343  $ 245,107  $  222,759
Perpetual license fees              4,005      3,642     11,801      11,275
Professional services and other     7,497      6,348     26,593      25,474
                                ---------  ---------  ---------  ----------

  Total net revenues               75,554     66,333    283,501     259,508

Cost of revenues (1):
Term license, maintenance and
 other recurring                   13,395     12,094     51,261      46,823
Perpetual license fees                 75         72        274         327
Professional services and other     7,278      6,587     28,901      29,777
Amortization of developed
 technology                         1,503      1,473      6,374       5,618
                                ---------  ---------  ---------  ----------

  Total cost of revenues           22,251     20,226     86,810      82,545
                                ---------  ---------  ---------  ----------

  Gross margin                     53,303     46,107    196,691     176,963

Operating expenses (1):
Sales and marketing                18,480     16,200     69,151      62,738
Product development                13,179     12,915     51,416      48,443
General and administrative          9,391     10,175     37,707      36,107
Amortization of other
 intangibles                          295        351      1,272       1,666
Restructuring charges                 230         38        840         130
                                ---------  ---------  ---------  ----------

  Total operating expenses         41,575     39,679    160,386     149,084
                                ---------  ---------  ---------  ----------

Income from continuing
 operations                        11,728      6,428     36,305      27,879
Interest income and other
 income (expense), net               (123)      (345)      (895)      1,240
                                ---------  ---------  ---------  ----------

Income from continuing
 operations before income taxes    11,605      6,083     35,410      29,119
Provision for income taxes          2,357      1,733     11,091       8,345
                                ---------  ---------  ---------  ----------

  Net income from continuing
   operations                   $   9,248  $   4,350  $  24,319  $   20,774

Discontinued operation:
  Net income (loss) from
   discontinued operation (net
   of applicable taxes of $23,
   $4,230, $(46) and $5,639,
   respectively)                      (68)    13,610       (166)     16,109

                                ---------  ---------  ---------  ----------
Net income                      $   9,180  $  17,960  $  24,153  $   36,883
                                =========  =========  =========  ==========

Basic net income (loss) per
 share:
  Continuing operations         $    0.18  $    0.08  $    0.47  $     0.41
  Discontinued operation                -       0.26          -        0.32
                                ---------  ---------  ---------  ----------
    Total operations            $    0.18  $    0.35  $    0.47  $     0.72
                                =========  =========  =========  ==========

Diluted net income (loss) per
 share:
  Continuing operations         $    0.17  $    0.08  $    0.45  $     0.39
  Discontinued operation                -       0.25          -        0.30
                                ---------  ---------  ---------  ----------
    Total operations            $    0.17  $    0.33  $    0.44  $     0.70
                                =========  =========  =========  ==========

Weighted average shares used to
 compute net income per share:
  Basic                            51,706     51,471     51,535      50,899
  Diluted                          54,823     53,947     54,476      52,909

(1) Includes stock-based
    employee compensation
    expense as follows:

  Cost of term license,
   maintenance and other
   recurring revenues           $     466  $     364  $   1,775  $    1,697
  Cost of professional services
   and other revenues                 295        302      1,140       1,269
                                ---------  ---------  ---------  ----------
    Total cost of revenues            761        666      2,915       2,966

  Sales and marketing               1,578      1,125      5,866       5,390
  Product development               1,318      1,216      5,200       4,857
  General and administrative        1,135      1,180      4,449       4,949
                                ---------  ---------  ---------  ----------
    Total operating expenses        4,031      3,521     15,515      15,196
                                ---------  ---------  ---------  ----------

  Total stock-based employee
   compensation expense         $   4,792  $   4,187  $  18,430  $   18,162
                                =========  =========  =========  ==========


On December 13, 2010, the Company's Board of Directors declared a
two-for-one stock split of the Company's common stock, payable in the form
of a 100% stock dividend. On January 18, 2011, one additional share of
common stock was distributed for each share held as of the close of
business on January 3, 2011. All references to number of shares and to per
share information, have been adjusted to reflect the stock split on a
retroactive basis.




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


                                                    Twelve Months Ended
                                                        December 31
                                                  ------------------------
                                                      2010         2009
                                                  -----------  -----------
Cash flows from operating activities:
  Net income                                      $    24,153  $    36,883
  Adjustment to net income for discontinued
   operation                                              166      (16,109)
                                                  -----------  -----------
  Net income from continuing operations           $    24,319  $    20,774

  Adjustments to reconcile net income to net cash
   provided by operating activities from
   continuing operations:
    Stock-based compensation                           18,430       18,162
    Depreciation and amortization                      17,610       16,692
    Loss on dispositions of fixed assets                   22           93
    Provision for doubtful accounts                       188          215
    Provision for (reduction of) sales returns           (616)         315
    Gain on investments                                     -       (2,056)
    Deferred income taxes                               8,423        8,129
    Other                                                 241          199
                                                  -----------  -----------
        Effect of statement of operations
         adjustments                                   44,298       41,749
    Changes in operating assets and liabilities:
      Accounts receivable                              (5,619)       2,094
      Prepaid and other assets                          2,393       (1,906)
      Accounts payable                                  1,997         (262)
      Accrued liabilities                               3,053        7,829
      Deferred revenues                                 8,519        4,450
      Income taxes payable                             (2,742)      (2,301)
                                                  -----------  -----------
        Effect of changes in operating assets and
         liabilities                                    7,601        9,904
                                                  -----------  -----------

Net cash provided by operating activities from
 continuing operations                                 76,218       72,427

Cash flows from investing activities:
  Cash used in acquisitions, net of cash acquired      (4,719)        (200)
  Purchases of property and equipment                 (17,418)      (4,575)
  Capitalized software development costs               (2,144)      (2,893)
  Purchases of marketable securities                  (46,496)     (60,000)
  Sales and maturities of marketable securities        36,496            -
  Proceeds from sale of investments                         -        2,056
  Proceeds from disposition of fixed assets                 -           37
  Change in restricted cash                                 -          611
                                                  -----------  -----------

Net cash used in investing activities from
 continuing operations                                (34,281)     (64,964)

Cash flows from financing activities:
  Proceeds from common stock issued from
   exercises of stock options                          14,020        8,637
  Withholding taxes related to equity award net
   share settlement                                    (5,467)      (2,196)
  Proceeds from common stock issued under the
   employee stock purchase plan                         5,793        5,621
  Repurchase of common stock                          (35,881)     (14,578)
  Repayment of long-term borrowing                          -      (25,000)
  Excess tax benefits from stock-based
   compensation                                         3,878          499
                                                  -----------  -----------

Net cash used in financing activities from
 continuing operations                                (17,657)     (27,017)

Net cash transferred from (transferred to)
 discontinued operation                                  (112)      31,959

Effect of exchange rate changes on cash and cash
 equivalents                                              (97)         374
                                                  -----------  -----------

Net change in cash and cash equivalents from
 continuing operations                                 24,071       12,779
Cash and cash equivalents of continuing
 operations at beginning of period                     57,877       45,098
                                                  -----------  -----------

Cash and cash equivalents of continuing
 operations at end of period                      $    81,948  $    57,877
                                                  ===========  ===========


                                                    Twelve Months Ended
                                                        December 31
                                                  ------------------------
                                                      2010         2009
                                                  -----------  -----------
Supplemental disclosure of cash flow information
Cash flow from discontiued operation:
  Net cash provided by (used in) operating
   activities                                     $      (377) $     2,621
  Net cash provided by investing activities                 -       26,358
  Net cash transferred from (transferred to)
   continuing operations                                  112      (31,959)
  Effect of exchange rates on cash and cash
   equivalents                                             (1)          (7)
                                                  -----------  -----------
  Net change in cash and cash equivalents from
   discontinued operations                               (266)      (2,987)
  Cash and cash equivalents of discontinued
   operation at beginning of period                       266        3,253
                                                  -----------  -----------
  Cash and cash equivalents of discontinued
   operation at end of period                     $         -  $       266
                                                  ===========  ===========







                          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, 2010 for
                                        Continuing Operations
                          -------------------------------------------------
                            Gross     Gross   Operating Operating    Net
                           Margin   Margin %   Income   Income %   Income
                          --------- --------  --------- --------  --------

GAAP                      $  53,303       71% $  11,728       16% $  9,248

  Amortization of
   acquired developed
   technology                   831                 831                831
  Amortization of other
   acquired intangibles           -                 295                295
  Stock-based compensation
   - cost of revenues           761                 761                761
  Stock-based compensation
   - operating expenses           -               4,031              4,031
  Restructuring charges           -                 230                230
  Income tax adjustment
   for non-GAAP (1)               -                   -             (3,857)

                          ---------           ---------           --------
Non-GAAP                  $  54,895       73% $  17,876       24% $ 11,539
                          =========           =========           ========

Diluted net income per
 share
  GAAP                                                            $   0.17
  Non-GAAP                                                        $   0.21

Shares used to compute
 diluted net income per
 share                                                              54,823


                              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                                                            $   0.08
  Non-GAAP                                                        $   0.14

Shares used to compute
 diluted net income per
 share                                                              53,947


(1) The estimated non-GAAP effective tax rate was 35% for the three months
    ended December 31, 2010 and 2009, 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, 2010 for
                                        Continuing Operations
                          -------------------------------------------------
                            Gross     Gross   Operating Operating    Net
                           Margin   Margin %   Income   Income %   Income
                          --------- --------  --------- --------  --------

GAAP                      $ 196,691       69% $  36,305       13% $ 24,319

  Amortization of
   acquired developed
   technology                 3,325               3,325              3,325
  Amortization of other
   acquired intangibles           -               1,272              1,272
  Stock-based compensation
   - cost of revenues         2,915               2,915              2,915
  Stock-based compensation
   - operating expenses           -              15,515             15,515
  Restructuring charges           -                 840                840
  Income tax adjustment
   for non-GAAP (1)               -                   -             (9,656)

                          ---------           ---------           --------
Non-GAAP                  $ 202,931       72% $  60,172       21% $ 38,530
                          =========           =========           ========

Diluted net income per
 share
  GAAP                                                            $   0.45
  Non-GAAP                                                        $   0.71

Shares used to compute
 diluted net income per
 share                                                              54,476


                              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                                                            $   0.39
  Non-GAAP                                                        $   0.62

Shares used to compute
 diluted net income per
 share                                                              52,909


(1) The estimated non-GAAP effective tax rate was 35% for the twelve months
    ended December 31, 2010 and 2009, 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 of 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, 2011
                                                Continuing Operations
                                                  Operating Income %
                                           -------------------------------

  Projected GAAP                                13%         to        14%
                                           =========  ========== =========

    Projected amortization of acquired
     developed technology and other
     acquired intangible asset adjustment          1%         to         2%
    Projected stock based compensation
     adjustment                                    6%         to         7%

                                           ---------  ---------- ---------
  Projected non-GAAP                              21%         to        22%
                                           =========  ========== =========

Contact Information

  • CONTACT
    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