Advent Software 8-K Advent Software Achieves Record Quarterly Revenue of $86 Million and Record Annual Revenue of $326 Million for 2011

Exhibit 99.1

Advent Software Achieves Record Quarterly Revenue of $86 Million and Record Annual Revenue of $326 Million for 2011

Company Reports Record ACV of $34 Million for the Year

SAN FRANCISCO — February 6, 2012 — 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 ended December 31, 2011.

“I am very proud of Advent’s 2011 performance and strong fourth quarter finish. We achieved record revenue and record annual contract value, while simultaneously expanding non-GAAP operating margin to 22 percent for the year,” said Stephanie DiMarco, Founder and Chief Executive Officer of Advent.  “In addition to the Company’s strong financial performance, we successfully executed on our core strategies to strengthen our portfolio of products and services and expand our global footprint and addressable market.  As a result, we head into 2012 with great momentum for Advent’s next phase of growth.”

FOURTH QUARTER 2011 RESULTS

GAAP Results for Continuing Operations

The Company reported quarterly revenue from continuing operations of $86.3 million for the fourth quarter of 2011, up from $75.6 million in the fourth quarter of 2010, a 14% increase.  Total annual revenues from continuing operations for the year ended December 31, 2011 were $326.2 million, compared to $283.5 million recorded in 2010, a 15% increase.

Operating income from continuing operations for the fourth quarter of 2011 was $10.1 million, or 12% of revenue, compared to $11.7 million or 16% of revenue for the fourth quarter of 2010.  Operating income from continuing operations for the year ended December 31, 2011 was $42.6 million, or 13% of revenue, compared to $36.3 million, or 13% of revenue, for 2010.

Net income from continuing operations for the fourth quarter of 2011 was $6.5 million compared to $9.2 million in the fourth quarter of 2010, a 29% decrease.   Net income from continuing operations for the year ended December 31, 2011 was $28.3 million compared to $24.3 million for 2010, a 16% increase.

On a fully diluted basis, earnings per share from continuing operations in the fourth quarter of 2011 were $0.12, compared to diluted earnings per share of $0.17 in the fourth quarter of 2010. On a fully diluted basis, earnings per share from continuing operations for the year ended December 31, 2011 were $0.52, compared to $0.45 per share for 2010.

Operating cash flow from continuing operations in the fourth quarter of 2011 was $27.6 million, compared with $24.4 million in the fourth quarter of 2010, a 13% increase. Operating cash flow from continuing operations for the year ended December 31, 2011 was $83.2 million, compared with $76.2 million for 2010, a 9% increase.  Cash, cash equivalents and short and long-term marketable securities totaled $136.3 million as of December 31, 2011, compared to $152.0 million as of December 31, 2010.

Total deferred revenues were $174.9 million as of December 31, 2011, compared to $154.2 million from continuing operations as of December 31, 2010, a 13% increase.

Non-GAAP Results for Continuing Operations

Non-GAAP operating income from continuing operations for the fourth quarter of 2011 was $18.5 million, or 21% of revenue. This compares to $17.9 million from continuing operations, or 24% of revenue, in the fourth quarter of 2010.  Non-GAAP operating income from continuing operations for the year ended December 31, 2011 was $72.2 million, or 22% of revenue.  This represents a 20% increase compared to non-GAAP operating income of $60.2 million, or 21% of revenue for 2010.

On a fully diluted basis, non-GAAP earnings per share from continuing operations were $0.22 in the fourth quarter of 2011 and represent a 5% increase from non-GAAP diluted earnings per share of $0.21 in the fourth quarter of 2010.  On a fully diluted basis, non-GAAP earnings per share from continuing operations were $0.86 for the year ended December 31, 2011, a 21% increase compared to $0.71 per share for 2010.

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:  The Annual Contract Value (ACV) of our new contract bookings in the fourth quarter of 2011 will contribute $13.7 million in annual revenue once the contracts are fully implemented.  New clients represent a broad cross-section of the investment management industry, from hedge funds and asset managers to family offices, fund administrators and the growing advisory market. The renewal rate was 93% for the third quarter of 2011, a 2 point improvement over the same period last year.

·Global Expansion and Execution:  The fourth quarter saw strong demand for Advent’s leading solutions outside of North America.  Advent signed new contracts with firms in Europe, the Middle East, Africa, and Asia.  Revenue from international operations accounted for 18% of total revenue in the fourth quarter and 18% for the full year 2011.

·Launch of Advent Portfolio Exchange® (APX) 4.0 and Tradex® 4.0:  Advent launched its most extensive update of APX to date.  With this release, Advent introduced customizable dashboard capabilities to offer greater flexibility and control over report content and format — delivering instant access to more information and with greater clarity.  Tradex®, an easy to use web-based system, allows firms that distribute funds to replace labor-intensive manual procedures for fund share order processing with a highly automated work flow and can be tailored to a specific client and market needs. With these releases, Advent continues to set a new standard in comprehensive portfolio management for both asset managers and wealth managers around the globe.

Advent’s Board of Directors appointed Advent’s President Peter Hess to the position of Chief Executive Officer (CEO) and President, effective June 30, 2012. Stephanie DiMarco, Advent’s founder and CEO, will step down as CEO at the end of June 2012. Ms. DiMarco continues to serve as a Director on Advent’s Board and will be transitioning to an advisory role for the company’s senior management.

FINANCIAL GUIDANCE

Advent provides the following financial guidance for the first quarter and fiscal year 2012:

Guidance	Q1 2012	FY 2012
Total Revenue ($M)	$86-$88	$361-$368
YoY Revenue Growth	14% - 17%	11% - 13%
GAAP Operating Margin	n/a	14.0% - 14.5%
Amortization of Intangibles (% of revenue)	n/a	3%
Stock Compensation Expense (% of revenue)	n/a	6%
Non-GAAP Operating Margin	n/a	23.0% - 23.5%
Operating Cash Flow ($M)	n/a	$90-$96
Capital Expenditures ($M)	n/a	$13-$15
Growth of Weighted Average Shares Outstanding, excluding any share repurchases	n/a	0.25%-0.75% per quarter
Effective Tax Rate (GAAP)	n/a	35% - 40%
Effective Tax Rate (non-GAAP)	n/a	35%

INVESTOR CALL

Advent Software, Inc. will host its Q4 2011 quarterly earnings conference call at 5:00 p.m. Eastern time today.  The Q4 2011 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 (866) 356-3095 and request conference ID #51691155.  A replay will be available through midnight, February 13, 2012.  The replay number for domestic callers is (888) 286-8010, and for international callers is (617) 801-6888, with the conference ID of #68833003.  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 Continuing Operations’ GAAP Measures to Non-GAAP Measures.”

FORWARD-LOOKING STATEMENTS

The financial projections under Financial Guidance, and statements regarding our momentum 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®, Tradex®, and Moxy® products; the successful development, release and market acceptance of new products and product enhancements; uncertainties and fluctuations in the financial markets; the Company’s ability to satisfy contractual performance requirements; difficulties in integrating merged businesses, such as Syncova Solutions Limited and Black Diamond Performance Reporting LLC, 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 2010 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, and Tradex is a registered mark in Norway and the European Union of Advent Norway AS.  All other company names or marks mentioned herein are those of their respective owners.

CONTACT
Media Contact:
Smita Topolski
Advent Software, Inc.
(415) 645-1668
stopolsk@advent.com

Investor Relations Contact:
Heidi Flaherty
Advent Software, Inc.
(415) 645-1145
flaherty@advent.com

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(GAAP, Unaudited)

	December 31
	2011			2010
ASSETS
Current assets:
Cash and cash equivalents	$	65,525		$	81,948
Short-term marketable securities	69,908			70,075
Accounts receivable, net	62,125			49,960
Deferred taxes, current	16,294			16,358
Prepaid expenses and other	23,660			17,864
Total current assets	237,512			236,205
Property and equipment, net	42,301			41,524
Goodwill	204,621			145,580
Other intangibles, net	49,521			19,772
Long-term marketable securities	917			—
Deferred taxes, long-term	30,751			33,591
Other assets	15,927			12,059
Noncurrent assets of discontinued operation	2,006			2,095
Total assets	$	583,556		$	490,826
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	10,558		$	6,737
Accrued liabilities	40,029			34,080
Deferred revenues	166,945			147,896
Income taxes payable	2,972			1,691
Short-term debt	5,000			—
Current liabilities of discontinued operation	488			165
Total current liabilities	225,992			190,569
Deferred revenues, long-term	7,926			6,337
Long-term debt	45,000			—
Other long-term liabilities	16,944			14,844
Noncurrent liabilities of discontinued operation	4,633			5,228
Total liabilities	300,495			216,978
Stockholders’ equity:
Common stock	510			520
Additional paid-in capital	429,734			411,600
Accumulated deficit	(154,053		)	(146,887		)
Accumulated other comprehensive income	6,870			8,615
Total stockholders’ equity	283,061			273,848
Total liabilities and stockholders’ equity	$	583,556		$	490,826

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
	2011			2010			2011			2010
Net revenues:
Recurring revenues	$	77,760		$	66,715		$	291,486		$	252,054
Non-recurring revenues	8,525			8,839			34,762			31,447
Total net revenues	86,285			75,554			326,248			283,501
Cost of revenues (1):
Recurring revenues	16,711			13,395			62,329			51,261
Non-recurring revenues	9,953			7,353			39,623			29,175
Amortization of developed technology	2,555			1,503			8,820			6,374
Total cost of revenues	29,219			22,251			110,772			86,810
Gross margin	57,066			53,303			215,476			196,691
Operating expenses (1):
Sales and marketing	19,496			18,480			74,807			69,151
Product development	16,065			13,179			57,561			51,416
General and administrative	9,904			9,391			37,040			37,707
Amortization of other intangibles	956			295			2,807			1,272
Restructuring charges	565			230			696			840
Total operating expenses	46,986			41,575			172,911			160,386
Income from continuing operations	10,080			11,728			42,565			36,305
Interest income and other income (expense), net	(406		)	(123		)	(1,243		)	(895		)
Income from continuing operations before income taxes	9,674			11,605			41,322			35,410
Provision for income taxes	3,143			2,357			12,991			11,091
Net income from continuing operations	$	6,531		$	9,248		$	28,331		$	24,319
Discontinued operation:
Net income (loss) from discontinued operation (net of applicable taxes of $(114), $23, $1,197 and $(46), respectively)	66			(68		)	1,839			(166		)
Net income	$	6,597		$	9,180		$	30,170		$	24,153
Basic net income per share:
Continuing operations	$	0.13		$	0.18		$	0.55		$	0.47
Discontinued operation	—			—			0.04			—
Total operations	$	0.13		$	0.18		$	0.58		$	0.47
Diluted net income per share:
Continuing operations	$	0.12		$	0.17		$	0.52		$	0.45
Discontinued operation	—			—			0.03			—
Total operations	$	0.12		$	0.17		$	0.56		$	0.44
Weighted average shares used to compute net income per share:
Basic	50,848			51,706			51,797			51,535
Diluted	53,051			54,823			54,085			54,476

(1) Includes stock-based employee compensation expense as follows:
Cost of recurring revenues	$	619	$	466	$	2,154	$	1,775
Cost of non-recurring revenues	341		295		1,314		1,140
Total cost of revenues	960		761		3,468		2,915
Sales and marketing	1,579		1,578		6,305		5,866
Product development	1,340		1,318		5,138		5,200
General and administrative	1,092		1,135		4,227		4,449
Total operating expenses	4,011		4,031		15,670		15,515
Total stock-based employee compensation expense	$	4,971	$	4,792	$	19,138	$	18,430

ADVENT SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Twelve Months Ended December 31
	2011			2010
Cash flows from operating activities:
Net income	$	30,170		$	24,153
Adjustment to net income for discontinued operation	(1,839		)	166
Net income from continuing operations	$	28,331		$	24,319
Adjustments to reconcile net income to net cash provided by operating activities from continuing operations:
Stock-based compensation	19,138			18,430
Depreciation and amortization	22,632			17,610
Loss on dispositions of fixed assets	2			22
Provision for doubtful accounts	230			188
Reduction of sales return reserves	(187		)	(616		)
Non-cash impairment loss	500			—
Deferred income taxes	4,700			8,423
Other	101			241
Effect of statement of operations adjustments	47,116			44,298
Changes in operating assets and liabilities:
Accounts receivable	(10,198		)	(5,619		)
Prepaid and other assets	(6,977		)	2,393
Accounts payable	3,734			1,997
Accrued liabilities	3,069			3,053
Deferred revenues	18,560			8,519
Income taxes payable	(451		)	(2,742		)
Effect of changes in operating assets and liabilities	7,737			7,601
Net cash provided by operating activities from continuing operations	83,184			76,218
Cash flows from investing activities:
Cash used in acquisitions, net of cash acquired	(97,092		)	(4,719		)
Purchases of property and equipment	(11,252		)	(17,418		)
Capitalized software development costs	(2,358		)	(2,144		)
Purchases of marketable securities	(89,236		)	(46,496		)
Sales and maturities of marketable securities	87,428			36,496
Net cash used in investing activities from continuing operations	(112,510		)	(34,281		)
Cash flows from financing activities:
Proceeds from common stock issued from exercises of stock options	7,189			14,020
Withholding taxes related to equity award net share settlement	(5,775		)	(5,467		)
Proceeds from common stock issued under the employee stock purchase plan	6,158			5,793
Repurchase of common stock	(51,582		)	(35,881		)
Proceeds from debt	50,000			—
Debt issuance costs	(1,901		)	—
Excess tax benefits from stock-based compensation	7,055			3,878
Net cash provided by (used in) financing activities from continuing operations	11,144			(17,657		)
Net cash transferred from (to) discontinued operation	1,655			(112		)
Effect of exchange rate changes on cash and cash equivalents	104			(97		)
Net change in cash and cash equivalents from continuing operations	(16,423		)	24,071
Cash and cash equivalents of continuing operations at beginning of period	81,948			57,877
Cash and cash equivalents of continuing operations at end of period	$	65,525		$	81,948

	Twelve Months Ended December 31
	2011			2010
Supplemental disclosure of cash flow information
Cash flow from discontiued operation:
Net cash used in operating activities	$	(1,349	)	$	(377	)
Net cash provided by investing activities	3,004			—
Net cash transferred from (to) continuing operations	(1,655		)	112
Effect of exchange rates on cash and cash equivalents	—			(1		)
Net change in cash and cash equivalents from discontinued operations	—			(266		)
Cash and cash equivalents of discontinued operation at beginning of period	—			266
Cash and cash equivalents of discontinued operation at end of period	$	—		$	—

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, 2011 for Continuing Operations
	Gross		Gross	Operating		Operating	Net
	Margin		Margin %	Income		Income %	Income
GAAP	$	57,066	66%	$	10,080	12%	$	6,531
Amortization of acquired developed technology	1,899			1,899			1,899
Amortization of other acquired intangibles	—			956			956
Stock-based compensation - cost of revenues	960			960			960
Stock-based compensation - operating expenses	—			4,011			4,011
Restructuring charges	—			565			565
Income tax adjustment for non-GAAP (1)	—			—			(3,180		)
Non-GAAP	$	59,925	69%	$	18,471	21%	$	11,742
Diluted net income per share
GAAP							$	0.12
Non-GAAP							$	0.22
Shares used to compute diluted net income per share							53,051

	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

(1)The estimated non-GAAP effective tax rate was 35% for the three months ended December 31, 2011 and 2010, 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, 2011 for Continuing Operations
	Gross		Gross	Operating		Operating	Net
	Margin		Margin %	Income		Income %	Income
GAAP	$	215,476	66%	$	42,565	13%	$	28,331
Amortization of acquired developed technology	6,019			6,019			6,019
Amortization of other acquired intangibles	—			2,807			2,807
Stock-based compensation - cost of revenues	3,468			3,468			3,468
Stock-based compensation - operating expenses	—			15,670			15,670
Acquisition related	—			936			936
Investment loss	—			—			500
Restructuring charges	—			696			696
Income tax adjustment for non-GAAP (1)	—			—			(12,005		)
Non-GAAP	$	224,963	69%	$	72,161	22%	$	46,422
Diluted net income per share
GAAP							$	0.52
Non-GAAP							$	0.86
Shares used to compute diluted net income per share							54,085

	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

(1)The estimated non-GAAP effective tax rate was 35% for the twelve months ended December 31, 2011 and 2010, 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, 2012
	Continuing Operations
	Operating Income %
Projected GAAP	14.0%	to	14.5%
Projected amortization of acquired developed technology and other acquired intangible asset adjustment		3%
Projected stock-based compensation adjustment		6%
Projected non-GAAP	23.0%	to	23.5%