Advent Software 8-K Advent Software Achieves Record Quarterly Revenue of $74 Million and Record Annual Revenue of $265 Million for 2008

Exhibit 99.1

Advent Software Achieves Record Quarterly Revenue of $74 Million and Record Annual Revenue of $265 Million for 2008

Company Also Announces Strong Fourth Quarter Non-GAAP EPS of $0.34

SAN FRANCISCO – February 3, 2009 – Advent Software, Inc. (NASDAQ: ADVS), a leading provider of software and services to the investment management industry, announced today its financial results for the fourth quarter and full year ended December 31, 2008.

“I am very pleased to announce that Advent achieved record financial results for the fourth quarter and full year 2008,” said Stephanie DiMarco, Founder, Chief Executive Officer and Chief Financial Officer of Advent.  “Integral to the Company’s outstanding financial performance were Advent’s important 2008 strategic achievements, which included strengthening our product portfolio, expanding our global footprint and growing our addressable market.  As a result, we head into 2009 with a very solid business foundation.”

Added Ms. DiMarco, “In this uncertain market environment, technology is one of the best levers businesses have to increase operational efficiency.  As our results demonstrate, Advent clearly benefits from our strong reputation of delivering innovative, reliable and cost effective solutions aimed at meeting our clients’ critical business needs.”

GAAP RESULTS

The Company reported record quarterly revenue of $74.4 million for the fourth quarter of 2008, compared to $59.4 million in the fourth quarter of 2007, representing a 25% increase.  Total annual revenues for the year ended December 31, 2008 were a record $264.8 million, a 23% increase over the $215.3 million recorded in 2007.

Income from operations for the fourth quarter of 2008 was $7.2 million, or 10% of revenue, which represented an increase of 104% compared to $3.5 million, or 6% of revenue, in the fourth quarter of 2007. Income from operations for the year ended December 31, 2008 was $20.7 million, or 8% of revenue, which represented an increase of 68% compared to $12.3 million, or 6% of revenue, for 2007.

On a fully diluted basis, earnings per share in the fourth quarter of 2008 were $0.23 and represent a 72% increase from diluted earnings per share of $0.13 in the fourth quarter of 2007.  On a fully diluted basis, earnings per share for the year ended December 31, 2008 were $0.68 and represent a 51% increase compared to $0.45 per share for 2007.

Cash flow from operations in the fourth quarter of 2008 was $22.8 million, compared with $24.1 million in the fourth quarter of 2007, a 5% decrease.  Cash flow from operations for the year ended December 31, 2008 was a record $77.0 million, which represented an increase of 23% compared to $62.4 million for 2007.

Cash and cash equivalents totaled $48.4 million as of December 31, 2008, compared to $49.6 million as of December 31, 2007.  Deferred revenue totaled $153.2 million as of December 31, 2008 compared to $120.3 million as of December 31, 2007.  During the fourth quarter of 2008, the Company drew down $25.0 million of debt under its revolving credit facility, resulting in a $25.0 million debt balance as of December 31, 2008.

During the fourth quarter of 2008, the Company repurchased 1.97 million shares of its stock at an average cost of $23.61 per share and, at December 31, 2008, had 1.67 million shares remaining to repurchase under the share repurchase program authorized by the Company’s Board of Directors on October 30, 2008.

NON-GAAP RESULTS

Non-GAAP income from operations for the fourth quarter of 2008 was $14.6 million.  This represents a 90% increase compared to non-GAAP income from operations of $7.7 million for the fourth quarter of 2007.  Non-GAAP income from operations for the year ended December 31, 2008 was $41.9 million, a 44% increase compared to non-GAAP income from operations of $29.1 million for 2007.

Non-GAAP earnings per share were $0.34 in the fourth quarter of 2008 and represent an 88% increase from diluted earnings per share of $0.18 in the fourth quarter of 2007.  On a non-GAAP basis, earnings per share were $0.97 for the year ended December 31, 2008, a 40% increase compared to $0.69 per share for 2007.

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

FOURTH QUARTER HIGHLIGHTS

·Annual Contract Value: Annual term license contract value was approximately $9.5 million for the fourth quarter of 2008 and $28.1 million for the full year 2008.

·Tamale Software Acquisition Completed: Advent completed its acquisition of Tamale Software, Inc.  Under the terms of the agreement, which were previously announced on September 4, 2008, Advent acquired all of the outstanding capital stock of Tamale Software for approximately $28 million and 906,000 shares of Advent’s common stock.  The completion of the acquisition represents a significant step for Advent in its strategy to expand its footprint in the front office and establish itself as a leader in the rapidly growing research management software field.

·Received Buy-Side Technology Awards: For the second consecutive year, Buy-Side Technology magazine named Advent Portfolio Exchange ‘Best Buy-Side Client Reporting Product’ and named Geneva® ‘Best Buy-Side Portfolio Accounting Product.’

·Released Axys® 3.7: Advent released Axys® 3.7, an important update to Advent’s turnkey portfolio accounting management and reporting solution.  The latest release of Axys® marks Advent’s continued commitment to keeping the platform current as technology and regulatory changes impact its client base.

·Expanded Executive Leadership: Advent expanded its executive leadership by promoting Peter Hess to the position of President of the Company.  Stephanie DiMarco will continue to lead the Company as CEO and continue to hold the position of CFO, a role she had temporarily filled since earlier this year.  Jim Cox will continue in the role he assumed in July 2008 as Vice President and Advent’s Principal Accounting Officer, working with Ms. DiMarco to manage the Company’s Finance function.  Additionally, Mr. Cox joined the Company’s executive management team.

FINANCIAL GUIDANCE

Advent announces the following guidance for the first quarter and the fiscal year 2009:

	Q109	FY09
Total Revenue ($M)	$68-$70	$280-$290
GAAP Operating Margin	n/a	7%-8%
Non-GAAP Operating Margin	n/a	15%-16%
Operating Cash Flow ($M)	n/a	$77-$82
Capital Expenditures ($M)	n/a	$12-$14

Please refer to the tables at the end of this release for the reconciliation between GAAP and non-GAAP financial measures.

INVESTOR CALL

Advent Software, Inc. will host its Q4 2008 quarterly earnings conference call at 5:00 p.m. Eastern time today.  The Q4 2008 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 888-812-3873 and request conference ID #82169490.  A replay will be available through midnight, February 10, 2009, by calling 800-642-1687 and referencing conference ID #82169490.  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 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, the impact of our 2008 strategic achievements, our ability to expand our US and international market presence, market acceptance of our products, anticipated benefits of our acquisition of Tamale Software, uncertain market conditions and their impact on our business, and the momentum of the business, and other forward-looking statements included in this press release 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 results and future growth rates; continued market acceptance of our Advent Portfolio Exchange®, Geneva® and Moxy® products; the

successful development and market acceptance of new products and product enhancements; continued uncertainties and fluctuations in the financial markets and the global economy; 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 2007 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.

The Advent logo, Advent Software, Axys and Geneva 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
	2008			2007
ASSETS
Current assets:
Cash and cash equivalents	$	48,351		$	49,589
Accounts receivable, net	51,670			47,574
Deferred taxes, current	13,121			10,288
Prepaid expenses and other	20,153			19,577
Total current assets	133,295			127,028
Property and equipment, net	41,240			27,779
Goodwill	149,609			106,520
Other intangibles, net	29,110			9,376
Deferred taxes, long-term	54,786			66,327
Other assets, net	11,554			10,645
Total assets	$	419,594		$	347,675
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,625		$	4,382
Accrued liabilities	27,924			29,328
Deferred revenues	146,714			115,398
Income taxes payable	978			1,086
Total current liabilities	181,241			150,194
Deferred income taxes	286			998
Long-term debt	25,000			—
Deferred revenues, long-term	6,449			4,939
Other long-term liabilities	10,795			11,698
Total liabilities	223,771			167,829
Stockholders’ equity:
Common stock	257			265
Additional paid-in capital	365,351			326,964
Accumulated deficit	(176,484		)	(161,685		)
Accumulated other comprehensive income	6,699			14,302
Total stockholders’ equity	195,823			179,846
Total liabilities and stockholders’ equity	$	419,594		$	347,675

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(GAAP, Unaudited)

	Three Months Ended December 31						Twelve Months Ended December 31
	2008			2007			2008		2007
Net revenues:
Term license, maintenance and other recurring	$	57,652		$	43,758		$	209,365	$	166,540
Perpetual license fees	7,295			8,834			22,727		26,504
Professional services and other	9,465			6,807			32,740		22,259
Total net revenues	74,412			59,399			264,832		215,303
Cost of revenues (1):
Term license, maintenance and other recurring	13,080			10,171			47,343		38,008
Perpetual license fees	149			219			915		851
Professional services and other	10,138			7,514			37,439		27,464
Amortization and impairment of developed technology	2,318			549			4,497		1,567
Total cost of revenues	25,685			18,453			90,194		67,890
Gross margin	48,727			40,946			174,638		147,413
Operating expenses (1):
Sales and marketing	17,071			15,066			63,539		55,422
Product development	13,179			11,863			50,154		41,869
General and administrative	10,158			9,785			38,144		34,799
Amortization of other intangibles	445			476			1,315		1,879
Acquired in-process technology	400			150			400		150
Restructuring charges	264			63			360		965
Total operating expenses	41,517			37,403			153,912		135,084
Income from operations	7,210			3,543			20,726		12,329
Interest income and other income (expense), net	(496		)	217			3,123		4,465
Income before income taxes	6,714			3,760			23,849		16,794
Provision for income taxes	521			(41		)	4,954		4,163
Net income	$	6,193		$	3,801		$	18,895	$	12,631
Net income per share:
Basic	$	0.23		$	0.14		$	0.71	$	0.48
Diluted	$	0.23		$	0.13		$	0.68	$	0.45
Weighted average shares used to compute net income per share:
Basic	26,478			26,317			26,640		26,495
Diluted	26,781			28,211			27,893		28,067

(1) Includes stock-based employee compensation expense as follows:
Cost of term license, maintenance and other recurring revenues	$	396	$	286	$	1,377	$	1,156
Cost of professional services and other revenues	361		223		1,136		769
Total cost of revenues	757		509		2,513		1,925
Sales and marketing	1,447		1,021		4,922		4,155
Product development	1,119		810		4,110		3,196
General and administrative	1,199		1,009		5,283		4,120
Total operating expenses	3,765		2,840		14,315		11,471
Total stock-based employee compensation expense	$	4,522	$	3,349	$	16,828	$	13,396

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(GAAP, Unaudited)

	Twelve Months Ended December 31
	2008			2007
Cash flows from operating activities:
Net income	$	18,895		12,631
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	16,828			13,396
Depreciation and amortization	14,431			11,185
Acquired in-process research and development	400			150
Loss on dispositions of fixed assets	5			651
Provision for doubtful accounts	611			79
Provision for (reduction of) sales returns	219			(135		)
Gain on investments	(3,393		)	(4,265		)
Other-than-temporary loss on private equity investment	—			585
Non-cash impairment loss	815			—
Deferred income taxes	3,509			3,035
Other	458			494
Effect of statement of operations adjustments	33,883			25,175
Changes in operating assets and liabilities:
Accounts receivable	(3,990		)	(6,280		)
Prepaid and other assets	(491		)	(10,019		)
Accounts payable	1,045			189
Accrued liabilities	(3,453		)	6,156
Deferred revenues	31,440			35,038
Income taxes payable	(342		)	(514		)
Effect of changes in operating assets and liabilities	24,209			24,570
Net cash provided by operating activities	76,987			62,376
Cash flows from investing activities:
Net cash used in acquisitions	(27,775		)	(8,211		)
Purchases of property and equipment	(23,206		)	(8,902		)
Capitalized software development costs	(2,370		)	(3,033		)
Proceeds from sale of private equity investments	3,393			11,621
Sales and maturities of marketable securities	—			24,921
Change in restricted cash	(248		)	(372		)
Net cash provided by (used in) investing activities	(50,206		)	16,024
Cash flows from financing activities:
Proceeds from exercises of employee stock options	6,095			27,474
Withholding taxes related to equity award net share settlement	(2,078		)	(118		)
Proceeds from common stock issued under the employee stock purchase plan	5,018			3,913
Repurchase of common stock	(61,572		)	(91,157		)
Proceeds from long term borrowing	25,000			25,000
Repayment of long term borrowing	—			(25,000		)
Excess tax benefits from stock-based compensation	263			607
Net cash used in financing activities	(27,274		)	(59,281		)
Effect of exchange rate changes on cash and cash equivalents	(745		)	283
Net change in cash and cash equivalents	(1,238		)	19,402
Cash and cash equivalents at beginning of period	49,589			30,187
Cash and cash equivalents at end of period	$	48,351		$	49,589

ADVENT SOFTWARE, INC.

RECONCILIATION OF SELECTED 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 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.

	Three Months Ended December 31, 2008
	Gross		Gross	Operating		Operating	Net
	Margin		Margin%	Income		Income%	Income
GAAP	$	48,727	65%	$	7,210	10%	$	6,193
Amortization and impairment of acquired developed technology	1,715			1,715			1,715
Amortization of other acquired intangibles	—			445			445
Stock-based compensation - cost of revenues	757			757			757
Stock-based compensation - operating expenses	—			3,765			3,765
Acquired in-process research and development	—			400			400
Restructuring charges	—			264			264
Income tax adjustment for non-GAAP (1)	—			—			(4,400		)
Non-GAAP	$	51,199	69%	$	14,556	20%	$	9,139
Diluted net income per share
GAAP							$	0.23
Non-GAAP							$	0.34
Shares used to compute diluted net income per share							26,781

	Three Months Ended December 31, 2007
	Gross		Gross	Operating		Operating	Net
	Margin		Margin%	Income		Income%	Income
GAAP	$	40,946	69%	$	3,543	6%	$	3,801
Amortization of acquired developed technology	100			100			100
Amortization of other acquired intangibles	—			476			476
Stock-based compensation - cost of revenues	509			509			509
Stock-based compensation - operating expenses	—			2,840			2,840
Acquired in-process research and development	—			150			150
Restructuring charges	—			63			63
Income tax adjustment for non-GAAP (1)	—			—			(2,805		)
Non-GAAP	$	41,555	70%	$	7,681	13%	$	5,134
Diluted net income per share
GAAP							$	0.13
Non-GAAP							$	0.18
Shares used to compute diluted net income per share							28,211

(1)The estimated non-GAAP effective tax rate was 35% for the three months ended December 31, 2008 and 2007, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes.

ADVENT SOFTWARE, INC.

RECONCILIATION OF SELECTED 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 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.

	Twelve Months Ended December 31, 2008
	Gross		Gross	Operating		Operating	Net
	Margin		Margin%	Income		Income%	Income
GAAP	$	174,638	66%	$	20,726	8%	$	18,895
Amortization and impairment of acquired developed technology	2,305			2,305			2,305
Amortization of other acquired intangibles	—			1,315			1,315
Stock-based compensation - cost of revenues	2,513			2,513			2,513
Stock-based compensation - operating expenses	—			14,315			14,315
Acquired in-process research and development	—			400			400
Restructuring charges	—			360			360
Investment gain	—			—			(3,393		)
Income tax adjustment for non-GAAP (1)	—			—			(9,628		)
Non-GAAP	$	179,456	68%	$	41,934	16%	$	27,082
Diluted net income per share
GAAP							$	0.68
Non-GAAP							$	0.97
Shares used to compute diluted net income per share							27,893

	Twelve Months Ended December 31, 2007
	Gross		Gross	Operating		Operating	Net
	Margin		Margin%	Income		Income%	Income
GAAP	$	147,413	68%	$	12,329	6%	$	12,631
Amortization of acquired developed technology	334			334			334
Amortization of other acquired intangibles	—			1,879			1,879
Stock-based compensation - cost of revenues	1,925			1,925			1,925
Stock-based compensation - operating expenses	—			11,471			11,471
Acquired in-process research and development	—			150			150
Restructuring charges	—			965			965
Investment gain	—			—			(3,662		)
Income tax adjustment for non-GAAP (1)	—			—			(6,287		)
Non-GAAP	$	149,672	69%	$	29,053	13%	$	19,406
Diluted net income per share
GAAP							$	0.45
Non-GAAP							$	0.69
Shares used to compute diluted net income per share							28,067

(1)The estimated non-GAAP effective tax rate was 35% for the twelve months ended December 31, 2008 and 2007, respectively, and has been used to adjust the provision for income taxes for non-GAAP purposes.

Advent Software, Inc.

Reconciliation of Projected GAAP Operating Income %

to Projected Non-GAAP Operating Income %

(Preliminary and unaudited)

Advent provides projections of non-GAAP measures of 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 GAAP results are made with the intent of providing 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 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.

	Twelve Months Ended December 31, 2009 Operating Income %
Projected GAAP	7%	to	8%
Projected amortization of acquired developed technology and other acquired intangible asset adjustment			2%
Projected stock based compensation adjustment			6%
Projected non-GAAP	15%	to	16%